Bank of America

What If The Debt Ceiling Turns Ugly: How To Trade A Fall Spike In Volatility

"We think volatility is unlikely to sustain these extreme lows in the fall and like selling Oct VIX puts as (i) seasonal patterns suggest the VIX troughs in Jul and peaks in Sep/Oct, (ii) the VIX has “settled” below 12 in only two of the past 27 Octobers, and (iii) fundamentally, the threat of debt ceiling brinkmanship in Sep/Oct, which has already spooked the T-bill market, should help support equity volatility."

Daily Trading Volume In Bitcoin Surpasses GLD

Daily trading volumes for bitcoin were $400mn in 2012 and have now moved up to about $2bn a day at present which means that - at current BTC prices - the total ADV of BTC traded is higher than that of GLD.

This Recovery Isn't All That Resilient, Here's Why

Most economists today applaud the resilience of the current recovery, which has stretched into its eighth year, the third-longest in postwar history. Resilience and rising household defaults, though, don’t tend to go hand in hand.

Euro Surges To 2-Year High In "Bipolar" Draghi Reaction; Futures Flat

"Draghi tried to talk the Euro down, even going so far as to suggest that ECB’s quantitative easing could be increased and prolonged," said Swissquote Bank's Yann Quelenn. "But the currency markets were not buying Draghi’s line, and neither are we. Available bonds are too scarce, and turn to a taper is too clear to disguise."

Treasury Volatility Crashes To Record Lows

Another day, another record low for volatility gauges, with Bank of America’s MOVE Index (considered Treasury Market 'VIX') falling to an unprecedented 48.26.

"ECB Or Not To Be": A Preview Of What Mario Draghi Will Say

Questions on possible exit scenarios will dominate the press conference. While acknowledging the strength of the economy, Draghi is likely to counter any ideas of an imminent and rapid path towards ending QE, instead urging patience with the still-subdued inflation outlook.

What Bond Traders Are Most Worried About Right Now

The latest BofA credit investor survey finds that while geopolitical risk remains credit investors' top concern not surprisingly oil prices moved into second place, while - with the rally in financial markets - asset bubbles jumped into third position.

What The Senate's Healthcare Fiasco Means For Trump Policies: Goldman Explains

Looking at last night's Senate fiasco, Goldman writes that while Congress may still pass a health bill, "it just won't be this one" and notes that the "enactment of much more narrowly-focused health legislation is still possible this year, in light of problems facing the individual insurance market for 2018." And in terms of near-term catalysts, all eyes now turn to the debt ceiling debate due in September...

BofA Beats Despite 14% Slump In FICC Revenue; Interest Income Unexpectedly Declines

Echoing the trend set by JPM and Wells Fargo last Friday, moments ago Bank of America reported revenue and earnings that modestly beat expectations, with Q2 revenue of $22.8bn, above the $21.8bn expected, generating net income of $5.3 billion up 10% Y/Y, and EPS of $0.46, above the $0.43 estimate, and 12% higher than Q2 2016.