Covenants

Mauldin: The Bonfire Burns On

"Bonfires are fun to watch, but they eventually burn out. Human folly apparently doesn’t, so we just keep adding to the absurdities..."

Junk Bond Debt Covenant Quality Drops To All Time Lows

The Moody's Covenant Quality score was developed to measure the change in bond structuring terms that will be detrimental to bond investor. It moves between 1 and 5 with 5 being the weakest covenant quality. It is now at all time lows.

Futures Flat As Payrolls Loom, Dollar Slide Continues

It took stocks only a few minute to "price in" the latest political shock out of Washington, with the Emini trading 0.07% higher this morning on news that Mueller now has a grand jury, while European and Asian shares are little changed as investors await the looming July jobs report.

Netflix Is Spending Twice As Much As Amazon On Content

To continue its growth, Netflix will have to spend some $8.7 billion in cash on new content, nearly $2 billion more than it did in 2016, and more than double what its nearest, and cash flow positive competitor, Amazon, is spending on new content.

"A Reverse Rollup From Hell": China's "Boldest Dealmaker" Faces Margin Call Disintegration

China's "boldest dealmaker", HNA Group, suddenly faces not only growing regulatory scrutiny from Beijing that threatens to raise HNA’s financing costs, but also send its shares plunging as holders are forced to liquidate, accelerating the company's demise. And, in an scenario that can only be dubbed as a "reverse rollup from hell" if the value of its stock price falls enough, HNA may soon be forced to disintegrate.

World Money: Five Hidden Signals From The IMF

"By the time the final loss of confidence arrives, much of the damage will already have been done. The analytic key is to look for those minor events pointing in the direction of lost confidence in the dollar... With that information investors can take defensive measures before it’s too late."

"Get Rich Quick In Virginia"

"Richmond VA is inundated with radio commercials to get rich quick by flipping houses. And I’ve seen articles in the paper about flippers. I, too, viewed this as being indicative of a top. We’ve also seen a huge surge in new restaurants."

Is Canada The Next Hot Money Victim?

One of the interesting things about the Great Recession was how Canada’s financial system sailed through it largely unscathed. But instead of Americans learning from Canada, Canadians appear to have concluded that we had it right after all... and have started to behave like turbo-charged Americans