Bond

S&P Futures Slide Ahead Of Bank Earnings

S&P futures extended their Wednesday decline, dropping in the overnight session with banking shares in focus ahead of results from JPMorgan and Citigroup. European stocks likewise retreated along with the dollar, while Asian shares were mixed.

Despite "Ruthless Economic War", Venezuela, PDVSA Avoid Default With $2.6 Billion Payment

Bondholders confirmed that Venezuela's state-owned oil company PDVSA made principal and interest payments of $2.2 billion today, avoiding default yet again despite what Vice President Tareck El Aissami called a "ruthless economic war" being waged against the Maduro government. That's the good news, the bad news is that PDVSA has $62 billion more in principal and interest due over the next few years.

Knave Dave's picture

After years of trying to create a "wealth effect", the Federal Reserve is slowly dialing down its special-effects machine. Yet, this week, the stock market provided dot-com-era proof of completely iirrational exuberance -- the kind of stupid stuff that happens when cheap money follows free money.

Which Hedge Funds Are The Biggest Holders Of ETFs

Despite complaints by hedge funds that ETFs are eating their lunch (and dinner), an interesting observation emerged in a new reported from Deutsche Bank: Hedge Funds are allocating increasingly more capital toward ETFs. This post shows why, and who are the 20 hedge funds with the highest ETF investments.

SocGen: "A Final Purge Of All Bearish Bond Sentiment May Cleanse The Market"

"I see no reason for USD/JPY to stop this side of 108. 2.29% this morning on nominal US 10s sees them below their recent range and real yields are 37bp now. Only a fall in US nominal yields to 1bp is avoiding the relative picture being even uglier but that just highlights the BOJs impotence in the face of lower global (US) yields."

"The Fed Is Once Again Making A Policy Error"

"I must admit, I am a little surprised the Fed's goal of withdrawing accommodation without having the whole financial system come crashing down has gone so smoothly. But I wonder if the Federal Reserve isn’t pushing their luck..."

Frontrunning: April 12

  • Futures flat as geopolitical risks weigh; earnings eyed (Reuters)
  • Brent oil rises for 8th day on possible extension to supply cut (Reuters)
  • U.S. accuses Russia of Syria gas attack 'cover up' (Reuters)
  • Xi Tells Trump China Wants Peaceful North Korea Solution (WSJ)
  • Tillerson, Lavrov Hold Talks in Moscow Amid Rising Tensions Over Syria (WSJ)

Traders "Swoop" On Stocks, Oil Rises For 8th Day But Bonds Still Don't Buy It

S&P futures are unchanged and Asian stocks closed mixed, however European stocks rebounded for first time this week, led by auto stocks after Daimler’s quarterly profit, as a break in alarming political news prompted traders to "swoop" - as Reuters puts it - on equities, cooling a safe-haven rally that saw the yen and gold at five-month highs and bond yields to drop their lowest this year.

Breslow Turns Bullish: "Don't Assume Each Event Will End Badly"

"Too many commentators have fallen into the “everything is binary” trap and decided that if you assume each event will end badly, there’s material to turn out a good rant. The reality is, actual investors have learned that all binary outcomes won’t resolve themselves in the same way and they have to find more than one way to deconstruct events."

Monumental Gridlock Meets Blind Euphoria

"To me, this situation feels like a slow-motion train wreck where all you can do is watch... Washington’s monumental gridlock is on a collision course with investors’ blind euphoria. We’re all on one train or the other. Hold on tight."

When Bulls Collide

With this backdrop of weakening underpinnings of the “Trump Trade” but exuberant hopes of a continued bull market run comes the potential collision between markets. It is highly unlikely that bond bulls and stock bulls will both be right.