• Bruce Krasting
    12/18/2014 - 21:42
      The one thing that Jordan can't do in this war is appear to be weak.

Asset-Backed Securities

Phoenix Capital Research's picture

The Last Time the Euro Hit These Levels, Europe Was in Total Collapse





Today the Euro is on the cusp of breaking critical support. Draghi will likely see this as a success (he wants inflation). More likely, it will bring in another round of the EU Crisis (the same line was hit when Greece imploded in 2010 and when Spain imploded in 2012).

 
 
Tyler Durden's picture

As The "Sanctions War" Heats Up, Will Putin Play His 'Gold Card'?





The topic of ‘currency war’ has been bantered about in financial circles since at least the term was first used by Brazilian Finance Minister Guido Mantega in September 2010. Recently, the currency war has escalated, and a ‘sanctions war’ against Russia has broken out. History suggests that financial assets are highly unlikely to preserve investors’ real purchasing power in this inhospitable international environment, due in part to the associated currency crises, which will catalyse at least a partial international remonetisation of gold. Vladimir Putin, under pressure from economic sanctions, may calculate that now is the time to play his ‘gold card’.

 
Tyler Durden's picture

Despite Record Highs, These 5 'People' Are Still Flipping Out





Despite the apparent economic and profit news improvements recently, JPMorgan CIO Michael Cembalest notes there are a few instances where people are still flipping out. It’s worth reviewing them, he suggests, as they're indicative of risks and opportunities in financial markets heading into 2015, and of the continued presence of central banks affecting asset prices.

 
Tyler Durden's picture

The Biggest Beneficiary Of Mario Draghi's ABS-Purchasing Plan Has Been Revealed





One bank is already set to benefit from the ABS program no matter what its actual outcome and impact on the European economy: the same bank that spawned none other than ECB's head... Mario Draghi. According to Bloomberg, Goldman Sachs Group says it’s adding staff to its European asset-backed securities business as the bank prepares for a resurgence in the $305 billion market that shrank more than 40 percent over the past four years.

 
Phoenix Capital Research's picture

The Era of "Growth" is Over… Next Up, the Era of "Inflation"





$8 trillion in QE spent by Central Banks failed to generate any sustained GDP growth or jobs. So what did the Central Banks do? They stopped talking about growth and began talking about “inflation.”

 
 
Tyler Durden's picture

US Futures Drop As USDJPY Algos Take Profit On Headline Confusion





With the USDJPY repeatedly hitting 116.00 as a result of the same pair of headlines hitting either Reuters, the Nikkei or Sankei every 6 or so hours for the past 3 days, namely that Japan will delay its sales tax hike by almost two years, and that Abe is preparing early elections, perhaps the algos realized they were pricing in the same event about 4 times in one day, and unable to break the 7-year-high resistance level, slid dropping nearly 100 pips to just over 115 at least check, which may well be today's "tractor" level, which in turn has also dragged down both European stocks and US futures. But the thing that made the vacuum tubes really spark is that at a press conference yesterday in Beijing, Abe was quoted as saying that he "has never made any reference to the dissolution of parliament", this came after the chief cabinet secretary Suga saying that the decision on whether or not to go to the polls would be Abe’s only.

 
Tyler Durden's picture

Mario Draghi's "There's No Mutiny On The ECBounty" Press Conference - Live Feed





Having served up a large bowl of nothing with the official statement, the job of jawboning 'hope' for future monetary policy idiocy falls once again on Mario Draghi's shoulders as he takes the stage in what may well be a highly contentious press conference. Will he admit the mutiny? Will he 'fess up that OMT is a mirage? Will he admit to being a secretive dictator? Will he remove his spectacles and angrily point at a reporter?

 
Tyler Durden's picture

The Zombie System: How Capitalism Has Gone Off The Rails





"Solutions to the world's problems are not produced in a meeting between Bill Gates and George Soros... Renewal has to come from below... Limiting the influence [of the richest] is of the utmost importance... so that today's upper-class, high-finance capitalism can once again revert to being a capitalism of the real economy and the societal center."

 
Tyler Durden's picture

Jim Grant On Complexity: The Hidden Cost Of Central Bank Actions





Central banks are printing rules almost as fast as they’re printing money. The consequences of these fast-multiplying directives — complicated, long-winded, and sometimes self-contradictory — is one topic at hand. Manipulated interest rates is a second. Distortion and mispricing of stocks, bonds, and currencies is a third. Skipping to the conclusion of this essay, Jim Grant is worried: "The more they tried, the less they succeeded. The less they succeeded, the more they tried. There is no 'exit.'"

 
Tyler Durden's picture

Stocks Spike On Reuters' "ECB Does QE" Leak Du Jour





It never gets old... Stocks have spiked - leaving all other asset classes in the dust - as Reuters unleashes their latest rumor:

ECB STIMULUS MAY LACK DESIRED SCALE, QE AN OPTION ACCORDING TO SOURCES: REUTERS

Reuters adds that the ECB plan to buy private sector assets may fall short and pressure is likely to build for bolder action early next year. So to sum up - Reuters first leaks the possibility of Corporate bond QE.... we do the math showing it is idiotic... and now Reuters confirms its source was enitrely wrong; we were right, and ECB has to do what everyone though it would do anyway.

 
Tyler Durden's picture

ECB Bought Just EUR1.7 Billion Covered-Bonds Last Week





According to an ECB-leaked spreadsheet (now confirmed), the impotent omnipotent central bank bought a mere EUR1.7 billion of covered bonds last week (which was largely expected) according to Bloomberg. This somewhat inglorious start to the ECB's efforts to engorge its balance by another trillion or so is supported by precedent as it has been the sovereign purchase programs that made the big difference in the past. Under pressure to "front-load the purchases" as one analyst notes, the results from last week suggest, as we have warned, there simply is not enough quality unencumbered assets lying around in Europe to make a dent in the ECB's efforts to greatly rotate taxpayer-backed free money on to bank balance sheets.

 
Phoenix Capital Research's picture

The Coming Dissolution of the EU





How this will all end up is obvious to anyone: the EU Crisis will return and the whole mess will come crashing down.

 
 
Tyler Durden's picture

FT Rejects Reuters Unsourced Trial Balloon About ECB Buying Corporate Bonds, Futures Refuse To Plunge





Precisely half an hour ago, we mocked the overnight Reuters trial balloon about ECB corporate bond buying, whose only purpose was to send futures higher, when not only did we question the credibility of the report based on "one person familiar with the work inside the ECB, speaking on condition of anonymity" and said that now "we await Germany to throw up all over what is a clear Reuters trial balloon floated by "one person familiar with the work inside the ECB, speaking on condition of anonymity" to see what the market reaction is to even more stimulus (as if it is unclear)." Well, it wasn't Germany. At least not yet. It was Reuters' competitor in the coverage of ECB rumors and innuendo, the FT, which moments ago blasted this, via Bloomberg:

  • ECB SAID NOT TO HAVE PUT CORPORATE BOND BUYING ON AGENDA: FT

So just in case anyone forgot how credible the Reuters rumor mill is when bailing out European risk (think summer of 2011 and 2012), here is a stark reminder.

 
Tyler Durden's picture

A Closer Look Why Futures Bounced 30 Points Off The Lows On Today's ECB BTFD Bailout





As commented previously, the reason for today's 30 point rip in emini futures from the lows hit just 4 hours ago, was a test of the ECB emergency BTFD service, today provided courtesy of Reuters which, just after the European close, gave what is ever more incorrectly called the "market" its dose of upward momentum ignition, when it reported that, in addition to the previously announced "private QE" which includes ABS and covered bond purchases, that Goldman's head of the European central bank would also go ahead and monetize corporate bonds, taking a step even further than the Fed, which at least is confined to public securities, and directly influencing private asset prices.

 
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