Investment Grade

Tyler Durden's picture

After Failed Halliburton Deal, Baker Hughes Unveils "Path For The Future" Including $2.5BN Stock, Bond Buyback





While it wasn't exactly breaking news, with consensus having long ago decided that Halliburton and Baker Hughes would ultimately call off their ill-timed $28 billion merger announced in late 2014 following recurring media leaks, overnight the two companies officially ended speculation when they announced that the contested merger would be called off, resulting in a $3.5 billion termination fee payable to Baker Hughes. And with its immediate future somewhat in limbo, moments ago Baker Hughes outlined its "path for the future."

 
Tyler Durden's picture

With Everyone Selling Stocks, Who Is Buying? Goldman Explains





"We expect corporations will purchase $450 billion of US equities in 2016 and will remain the largest source of US equity demand."

 
Tyler Durden's picture

Default Cycle Now In Full Swing As Goodrich Petroleum Is Latest To File Chapter 11





This morning another troubled energy producer, Goodrich Petroleum announced a prepackaged Chapter filing meant to implement a financial reorganization after struggling to restructure its debt amid declining energy prices. This follows the filing of Energy XXI just 24 hours ago. Since the start of 2015, about 50 oil and gas producers have gone bankrupt, owing more than $17 billion, according to law firm Haynes & Boone LLP.

 
Tyler Durden's picture

Wells Fargo Finally Reveals Its Dire Energy Exposure: $32 Billion To Junk-Rated Oil And Gas Companies





The punchline in Wells Fargo's earnings report is in the reminder of just how generous Wells has been in lending to junk-rated oil and gas companies in the recent past to compensate for its eclining NIM: Wells reported that ~22%, or $8.8 billion, of exposure to investment grade companies, which means $32 billion is to junk-rated companies!

 
Tyler Durden's picture

SocGen: "Now We Know Why The Fed Desperately Wants To Avoid A Drop In Equity Markets"





"The catalyst for a balance sheet crisis is rarely the affordability of interest rates, so a 25bp rise in Fed rates is neither here nor there. Credit market risk is about assessing the likelihood of getting your money back. As such asset prices (i.e. equity markets) and asset price risk (i.e. equity volatility) are far bigger concerns. So all you need for a balance sheet crisis is declining equity markets, a phenomenon the Fed appears desperate to avoid. Now we know why."

 
Tyler Durden's picture

Deutsche Bank Says World "Past The Point Of No Return" In The Default Cycle





"We continue to live in a low default world for now though. Even though defaults picked up in 2015, B/BB default rates were still comfortably below their long-term average which they have been for well over a decade now with 2009 being the only exception. Indeed last year’s default rate for global Bs (up from 0.9% to 2.7%) was still lower than all of the first two decades of the modern era of leveraged finance up to 2003. So in spite of all the challenges we face this era has been characterized by astonishingly low default rates. There are clear signs the cycle is turning though, especially in the US."

 
Tyler Durden's picture

"It Been Horrendous" - Investor Tries To Pull Cash From Valeant-Heavy Fund, Gets Shares Instead





When Tom Bentley tried to pull his money from a mutual fund troubled by its large stake in Valeant Pharmaceuticals International Inc., he instead received shares in a Springfield, Mo. auto-parts retailer. Sequoia Fund Inc. sent the retired computer hardware engineer about 5% of his money in cash and the rest was stock in one company–O’Reilly Automotive Inc. Mr. Bentley said he sold the shares as soon as they appeared in his account on April 7, but they had already dropped in value. "It has been pretty horrendous," Mr. Bentley said.

 
Tyler Durden's picture

Janet's Jabbering Leaves Investors "On The Edge Of A Live Volcano"





The evidence that Yellen is clueless or a blatant liar is endless. The casino gamblers keep dancing on the edge of a live volcano in the belief that Yellen has their back. In fact, her statements this week prove once again that she is right there on the edge with them - jabbering incoherently. One of these days, even the silicon units in the casino will take notice. The dancing will then turn into diving for the doors.

 
Tyler Durden's picture

The ECB Effect: European Telecom Issues Largest Ever Junk Bond After More Than 100% Upsizing





The market bond market, which is now frontrunning not just what the ECB has announced it will buy but what it may buy, just led to a record European junk bond issuance, when French cable and telecom operator Numericable "stunned the market" (as Reuters put it), when it upsized what was originally supposed to be a $2.25 deal by more than 100% to a whopping $5.2 billion bond deal on Wednesday. This was the largest single high-yield bond tranche ever issued.

 
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.

 
Tyler Durden's picture

The End Of Europe As We Know It?





Amid secular stagnation, the Eurozone's old fiscal, monetary and banking challenges are escalating, along with new threats, including the Brexit, demise of Schengen, anti-EU opposition and geopolitical friction. Brussels can no longer avoid hard political decisions for or against an integrated Europe, with or without the euro.

 
Tyler Durden's picture

Fitch Downgrades Chicago After "Worst Possible Outcome" In State Supreme Court Pension Reform Bid





Dear Mayor Emanuel, it may be about time to get on the phone with Detroit and ask for pointers on how to efficiently navigate the bankruptcy process...

 
Syndicate content
Do NOT follow this link or you will be banned from the site!