Counterparties

Tyler Durden's picture

Two More US Energy Companies Go Bankrupt: Breitburn, Sandridge File Chapter 11





Just days after the latest two shale casualties filed for bankruptcy protection when both Linn Energy and Penn Virginia announced prepackaged Chapter 11, moments ago Sandridge announced it too was entering bankruptcy court when it filed a voluntarily petition under Chapter 11 in U.S. Bankruptcy Court for Southern District of Texas to consummate a pre-arranged reorganization. This follows just hours after Breitburn Energy Partners announced it had filed Chapter 11 as it hopes to negotiate a restructuring of its balance sheet in court, continuing talks with creditors that began a month ago, CEO Hal Washburn said in a release.

 
Tyler Durden's picture

"Unexpected" Australian Rate Cut To Record Low Unleashes FX Havoc, Global "Risk Off"





Overnight Australia finally admitted it has succumbed to the global economic weakness plaguing the rest of the world when in a "surprise" move, Australia’s central bank cut its benchmark interest rate for the first time in a year to a record low and left the door open for further easing to counter a wave of disinflation that’s swept over the developed world. The move sent the local currency tumbling and local stocks climbing. Reserve Bank of Australia Governor Glenn Stevens and his board lowered the cash rate by 25 basis points to 1.75 percent Tuesday, a move predicted by just 12 of 27 economists surveyed by Bloomberg. The announcement has, not surprisingly unleashed havoc across FX markets and broadly pushed global mood into its latest "risk off" phase.

 
Tyler Durden's picture

ECB Releases Full Details Of Its Corporate Bond Buying Program





  • The CSPP aims to further strengthen the pass-through of the Eurosystem’s asset purchases to the financing conditions of the real economy.
  • Purchases will start in June 2016.
  • The CSPP will be carried out by six national central banks acting on behalf of the Eurosystem, coordinated by the ECB.
  • In combination with other non-standard measures, the programme will provide further monetary policy accommodation and help inflation rates return to levels below, but close to, 2% in the medium term.
 
Tyler Durden's picture

The Fed Sends A Frightening Letter To JPMorgan, Corporate Media Yawns





Yesterday the Federal Reserve released a 19-page letter that it and the FDIC had issued to Jamie Dimon, the Chairman and CEO of JPMorgan Chase, on April 12 as a result of its failure to present a credible plan for winding itself down if the bank failed. The letter carried frightening passages and large blocks of redacted material in critical areas, instilling in any careful reader a sense of panic about the U.S. financial system. The Federal regulators didn’t say JPMorgan could pose a threat to its shareholders or Wall Street or the markets. It said the potential threat was to “the financial stability of the United States.”

 
Tyler Durden's picture

"We Don't Have A Wonderful Explanation What Is Going On" - Reverse Repo Usage Plunges To Program Lows





Moments ago the Fed's RRP operation totaled only $18.7 bln, the lowest level of participation since December 19, 2013 when the maximum bid per counterparty was only $1 bln compared to $30 bid since September 2014. In other words, program participants took only $18.7 billion worth of Treasury securities from the Fed, just months after the Fed expanded the reverse repo program to account for potentially hundreds of billions in reverse repo demand after the Fed's 25 bps rate hike. What is going on? For the answer we looked to repo experts Stone McCarthy, but unfortunately they too are stumped: "We don't have a wonderful explanation for the diminished participation."

 
Tyler Durden's picture

A "Massive" New Headache For Banks Has Emerged





It's not just the shale drillers who are in danger as they see their liquidity evaporate. As the WSJ writes today, and as covered here since January, it is the lenders themselves whose unfunded revolver exposure may suddenly become funded and expose them to even greater risks from the energy sector should oil not rebound far more forcefully and put US oil and gas companies back in the black. How big is the exposure? Very big: $147 billion.

 
Reggie Middleton's picture

So Called "Trusted Parties", Bank Collapse, the ECB and Blockchains: Watch as I Call the Next Bear Stearns, Again!





I called it once in January 2008 (Bear). I called it 2x in March 2008 (Lehman), and I'm calling it again in 2016. Don't say you didn't know. These proclamations of trust will truly put my analysis - and your capital - to the test.

 
Reggie Middleton's picture

In Finance, What Happens When You Trust the Untrustworthy? You're About to Find Out With Private Blockchains





Putting trust in an entity does not mean that you can trust that entity. Ask the former clients of Bernie Madoff, Lehman Brothers, Bear Stearns and Man Financial - among many others. Despite these very recent historical examples of misplaced trust consequences, here we go again!

 
Tyler Durden's picture

Something Did Break After All: Repo Rate Soars Most Since September 2008





An afternoon sell-off in GC pushed overnight rates (on quarter-end) as high as 1.75% and the market ended closed at 1.75%. Drumroll please! The 1.75% rate was the highest GC Repo trade since September, 2008.

 
Reggie Middleton's picture

With Wall Street Bitten by the Blockchain Bug, How Do We Admit the Truth About the Technology's Disruptive Potential?





Bankers and their technology partners say blockchain tech is not disruptive. Lawyers and others say it drops intermediation costs (but aren't bankers intermediaries?). The truth is disruption is unavoidable, and the sooner market participants realize this, the better.

 
Tyler Durden's picture

Swiss National Bank Admits It Spent $470 Billion On Currency Manipulation Since 2010





Swiss policy makers rarely state outright that they’ve intervened, and analysts use data on sight deposits and foreign currency reserves to gauge the scope of the central bank’s actions. Breaking with the usual protocol, Jordan said in June the SNB had acted to stabilize the franc amid the Greek debt crisis. The bottom line: CHF86.1 billion spent on FX intervention in 2015 and a whopping $470 billion since 2010.

 
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