Institutional Investors

To "Prevent Public Panic", Beijing Orders Banks To Keep Capital Controls Secret

"You must control your forex deficit, but you can't say that SAFE is controlling capital outflows," a high-ranking government official told Chinese bankers. The banks were told to "manage sentiment" to prevent public panic, the banker said, and the banks' research analysts should not broadcast any negative views on the yuan.

BlackRock's Robo-Quants Are On Pace To Post Record Losses

BlackRock’s quant hedge-fund strategies were on track for losses in 2016, according to a monthly client update sent out in late December, and according to Bloomberg, of the five included, four were set for their worst returns on record.

European Stock Markets See Best Start To Year Since 2013

European stocks were panic-bid at the open overnight as hungover New Year's Eve revelers (absent Brits and Swiss who were still on holiday) bought Italian banks, German utilities, and Spanish industrials following the better than expected manufacturing PMIs across most nations. EuroStoxx 50 gained 0.6% - thanks to a spike near the open - for the best open to a year since 2013.

Will Investors Get 'Hustled' By The Pros In 2017?

If you think you’re hearing a wee bit of a mixed message emanating from households and businesses, you’re not losing your marbles. If the stars don’t align perfectly, if the sequel doesn’t best the original, smaller investors might want to wise up to the fact that they’re being hustled by the equivalent of professional gamblers.

As Mystery Of China's Multi-Billionaire Default Deepens, A New "Bond Scare" Emerges

The fate of a defaulted $45 million Chinese corporate bond sold through an Alibaba-backed online WMP and belonging to the telecom company of one of China's biggest billionaires, was thrown into doubt on Monday, after a bank said letters of guarantee for the bonds were counterfeit, suggesting an entirely new "finance scare" is emerging in China.

Chinese Multibillionaire Defaults On Retail Bonds Due To "Severe Cash Crunch"

Chinese multi-billionaire Wu Ruilin, Chairman of Cosun Group, has defaulted on bonds worth a paltry 100 million yuan ($14.4 million) that he raised from retail investors, citing tight cash flow. "Either he was building his business on high leverage, or he is determined to count on the insurer, but it is for sure he really has a severe cash crunch."

Bullish Or Bearish - This Is The Real Risk

"As a money manager, I am currently long the stock market. I must be, or I potentially suffer career risk. However, my job is not only to make money for my clients, but also to preserve their gains, and investment capital, as much as possible... The real risk to investors is not “missing out” on a further rise in the markets, but catching the bulk of the reversion that will wipe out most of the gains from the previous advance."

Monte Paschi "Scrambles" With Last Minute Capital Increase To Avoid Nationalization

According to a Reuters source, Monte Paschi was "scrambling on Sunday to thrash out a last-ditch plan to raise €5 billion on the market by year-end after the European Central Bank refused to give it more time to recapitalize." Rome is ready to intervene with an emergency decree to rescue the bank if needed, a government source said on Friday.