Bond

Tyler Durden's picture

Dramatic Footage Of Reporters Mugging Martin Shkreli At Brooklyn Courthouse





A dramatic scene unfolded in front of a Brooklyn courthouse, where dozens of reporters mugged the diminutive and scandalous Martin Shkreli after he posted a $5 million bond to be released back into society, something we have not seen since the days of Bernie Madoff.

 
Phoenix Capital Research's picture

Watch the Lines! Bull Markets Close to Ending in Major Markets





Take note, these charts signal that the bull markets of the last six years are ending. The markets are primed for another Crash, just as they were in 2000 and 2007.

 
Tyler Durden's picture

In First Post-Hike Reverse Repo, Fed Removes $105Bn Liquidity From 49 Banks





In what appears to be an orderly process, The NY Fed's first Reverse Repo operation since The FOMC 'raised' rates released $105.185 billion of Treasury collateral to 49 banks at a rate 25bps, draining the same amount of system liquidity.  This is being greeted as good news by many as no major disprutions appear to have occurred... aside from, of course, a 6bps plunge in long-end bond yields, 250 point drop in The Dow, and notable weakness in high-yield bonds. While some had feared up to $1 trillion would need to be withdrawn to achieve The Fed's goals, the size of this initial RRP suggests there is considerably less excess liquidty in the system than many would believe... indicating a notably more fragile system than we are being led to believe.

 
Tyler Durden's picture

"In Short Janet, It's Too Late" - Albert Edwards Calls It With These Seven Charts





"The party's over and bond investors who always tend to be more sober types, realize this and have headed for the exits whereas equity investors are so intoxicated they haven't realized that the music has stopped. Equity investors are still gyrating around the dance floor - just as in 1999 and 2007... I believe the Yellen Fed will soon be treated with the same contempt the Greenspan Fed was in the aftermath of the 2008 financial crisis. And they will deserve it."

 
Tyler Durden's picture

Investors Lose Faith - Slumping Stocks Give Up All Yellen Gains





It appears the "what the market missed" that we detailed earlier - This sets the Fed on a collision course with the market because "with the market pricing fewer hikes than the Fed suggests, someone is going to end up being wrong," - is starting to filter out to the mainstream. Despite exuberant buying in FANGs, the broad market indices have retraced the post-Yellen exuberance as bond yields fade, hinting at the market's growing realization that this could be a policy error.

 
Tyler Durden's picture

Paul Craig Roberts On Who Really Benefits From The Rate Hike





A different way of putting it is that the “rate hike” favors banks sitting on excess reserves over banks who are lending to businesses and consumers in their community. In other words, the rate hike just facilitates more looting by the One Percent.

 
Tyler Durden's picture

Global Stocks, Futures Continue Surge On Lingering Rate Hike Euphoria





Heading into the Fed's first "dovish" rate hike in nearly a decade, the consensus was two-fold: as a result of relentless telegraphing of the Fed's intentions, the hike is priced in, and it will be a "dovish" hike, with the Fed lowering its forecast for the number of hikes over the next year. Consensus was once again wrong on both accounts: first the rate hike was far more hawkish than most had expected (see previous post), and - judging by the surge in Asian, European stocks and US equity futures - the "market" simply is enamored with such hawkish hikes which will soon soak up trillions in liquidity from the financial system.

 
Gold Standard Institute's picture

A Free Market in Interest Rates





Many people wonder why couldn’t we let the market set the interest rate. After all, we don’t have a Corn Control Agency or a Lumber Board. So why do we have a Federal Open Market Committee? It’s a very good question.

 
Tyler Durden's picture

Fed Hikes Rates, Unleashing First Tightening Cycle In Over 11 Years





In the end, the Fed did not surprise, and raised interest rates for the first time in almost a decade in a widely telegraphed move while signaling that the pace of subsequent increases will be “gradual” and in line with previous projections. The Federal Open Market Committee unanimously voted to set the new target range for the federal funds rate at 0.25 percent to 0.5 percent, up from zero to 0.25 percent.

 
Tyler Durden's picture

Presenting Saxo Bank's 10 "Outrageous Predictions" For 2016





"The irony in this year’s batch of outrageous predictions is that some of them are “outrageous” merely because they run counter to overwhelming market consensus. In fact, many would not look particularly outrageous at all in more “normal” times – if there even is such a thing!"

 
Tyler Durden's picture

SEC Throws Up On Third Avenue's Gating Plan (Then Folds)





Update: The SEC Folds - SEC PERMITS TEMPORARY SUSPENSION OF THIRD AVENUE REDEMPTIONS, WILL BE SUBJECT TO ONGOING SEC OVERSIGHT

HYG, the now infamous high-yield bond ETF, had an "ok" day, rallying along with everything else post-Fed. However, shortly after the close, it started to fade quickly as SEC "expressed concerns" about Third Avenue's plan for liquidation.

 
ilene's picture

Sticker Shock: Fed to Hike Rates First Time in NINE Years!





China did everything it could to prevent a collapse and it still happened.  How do you think other countries will do?

 
Tyler Durden's picture

Market Confidence In The Fed's Policy Error (Summed Up In 1 Chart)





While The Fed is confidently rising rates, the market is signalling its belief that this is a policy error. Not only are longer-dated bond yields lower but short-term money-market expectations for January now see a higher chance of a rate-cut, than a rate-hike.

 
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