• Tim Knight from...
    10/06/2015 - 17:03
    As we head into another earnings season, the bulls better pray to whatever pagan gods they worship that company after company magically defy the downturn that the economy is quite obviously entering.

Capital Markets

Tyler Durden's picture

Funds For Fracking Finally Dry Up: One Last Hail Mary Pass Remains

Is Saudi Arabia on the verge of winning the war on US Shale firms? It appears the spigot of malinvestment-subsidizing liquidity that kept numerous zombie energy firms alive has been shut off almost entirely. As oil prices return to cycle lows, so credit risk has spiked to record highs and issuance of life-giving bonds has collapsed. As Reuters reports, this has opened up opportunities for deep-pocketed private equity firms to push for restructuring or buy assets as many oil companies need cash to replenish banks' slimmed-down lending facilities, service their bonds and finance drilling of new wells to keep pumping oil and sustain cash flow. But hope is fading as one private equity form CEO warns "I would say, this is a good time to be careful when it comes to investing in energy."

Tyler Durden's picture

Yuan Devaluation Sparks Biggest Crash In US Corporate Bonds Since Lehman

Just two days ago we warned of the dramatic disconnect between equity insurance and credit insurance markets - at levels last seen before Bear Stearns collapse. As the Yuan devaluation shuddered EURCNH carry traders and battered European assets, US equity markets stumbled onwards and upwards, impregnable in their fortitude with The Fed at their back no matter what. However, US corporate bond markets were a bloodbath...

Tyler Durden's picture

It's Not The Economy Stupid: It's The Fed

Today many are talking about the economy, but that’s all they’re doing: talking. Doesn’t matter if its today’s politician, CEO’s from the largest corporations, some national or regional business association figure-head, right down to academia with its self-perpetuating gaggle of Ivory Tower economic aficionados. All they are doing is paying lip-service to the problems. And the reason? They can’t do anything about it because as of today, the U.S. economy is being controlled high-handedly by The Federal Reserve. The U.S. economy has never before been under the command and control of a single entity – until now. Today the Fed. entices nearly all businesses to focus on short-term games of financial engineering rather than on core business principles to grow. This is what a stance at the zero bound gives rise to.

Marc To Market's picture

Is the Dollar Going on Summer Vacation?

Near-term dollar outlook, with some views on oil, Treasuries and S&P 500 thrown in for extra measure.  

Tyler Durden's picture

One-In-A-Billion "Hiccups" Are Happening All The Time, Citi Warns Something Is Wrong

When things that are supposed to happen once every 3 billion years (statistically speaking) start happening once every three months, or every three weeks, then something is definitively broken.

Tyler Durden's picture

This Alarming Indicator Is Back At A Level Last Seen 10 Days Before The Bear Stearns Collapse

One of the most disturbing and recurring themes highlighted on this site over the past year has been the ever greater disconnect between the worlds of equity and fixed income, whether in terms of implied volatility, or actual underlying risk.  It turns out there is be an even more acute, and far more concering divergence, which was conveniently pointed out overnight by Bank of America and which suggests that a Bear Stearns type event may be just a few days ahead.

Tyler Durden's picture

Did David Tepper Just Call The Market Top... And Is The Appaloosa Billionaire Losing His Touch

How did Tepper do in Q2? In a word: lousy. In another word: the man who recently was on CNBC pitching a 20x P/E multiple as the new normal, may have just called the market top.

Tyler Durden's picture

The Great China Ponzi - An Economic And Financial Trainwreck Which Will Rattle The World

There is an economic and financial trainwreck rumbling through the world economy. Namely, the Great China Ponzi. In all of economic history there has never been anything like it. It is only a matter of time before it ends in a spectacular collapse, leaving the global financial bubble of the last two decades in shambles. The resulting deflationary spiral will suck the global economy into its vortex. And Wall Street will go down for the count because this time the Fed will be utterly powerless to reverse the tide.

Tyler Durden's picture

6 Years And One Witch Hunt Later, Goldman Changes Its Mind On "Secret Sauce" Software

Despite the firm's rather checkered history when it comes to open source software, Goldman is reportedly set to make some of its technology available to clients. This new, enlightened stance comes six years after the bank accused a former employee of stealing code that, if it fell into the "wrong" hands, had the potential to "manipulate markets in unfair ways."

Tyler Durden's picture

8 Capital Markets 'Threats' To The Central Bank Narrative

The week's weakness started with the surprise yuan devaluation, but the moves in everythingfrom crude oil to U.S. government debt signal that investors and traders are telling the Fed to hold off for now. Will U.S. policymakers listen? Make no mistake: the Fed marches to its own data-dependent drum. These indicators will only tell you if the central bank has the right tempo to support markets.

Tyler Durden's picture

Be Afraid: This Is The Fed's Last Remaining Strategy


Tyler Durden's picture

The Cable Industry's Scariest Chart

Recent price volatility in the media sector got us wondering: is “Cord cutting” the home cable box in favor of online entertainment really hitting critical mass?

Tyler Durden's picture

Flushing Cash Into The Casino - The Media Stock Swoon Shows That It Works Until It Doesn't

During the most recent quarter debt issuance by US companies reached an all-time high, raising a question as to why companies still need to borrow so much after selling $7 trillion of U.S. debt securities since 2008. This weeks S&P Media index swoon leaves no doubt as to the answer. Companies have not been borrowing to grow; they have been borrowing in order to flush cash into the casino. Charles Ponzi once had a scheme that was not essentially different. Yes, and it worked until it didn’t.

Tyler Durden's picture

An Ex-Con's Advice To A Libor Rigger

"You wake up one morning and think 'I’m in prison.' And that’s when it hits you, and you suddenly realize that you are no longer in control of your life."

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