Investment Grade

Turkish Lira Plunges Over 2% To New Record Low, Yields Rise On Moody's Warning

The collapse in the Turkish Lira, which has been relentless since last summer's failed coup, has only accelerated in 2017, and especially this morning, when the Turkish currency tumbled more than 2% against the dollar - its single worst day since the July 19 military coup attempt - sliding as low as 3.73, down over 5% so far in 2017, and over 23% in the past 12 months.

Global Debt Sales Hit A Record $6.6 Trillion In 2016

Courtesy of record low rates throughout most of 2016, overall debt issuance in the year rose to just over $6.6 trillion, breaking the previous annual record set in 2006. Corporations accounted for more than half of the $6.6 trillion, while the rest included sovereign bonds sold through syndication, US and international agencies, mortgage-backed securities and covered bonds.

Meet The NY Pension "Strategist" Who Traded Allocations For "Hookers And Blow"

According to a complaint filed by U.S. prosecutors earlier today, Navnoor Kang, the former Director of Fixed Income and Head Portfolio Strategist at the New York State Common Retirement Fund, steered $2 billion worth of allocations to two "preferred brokers" in exchange for $100,000 worth of bribes in the form of the universal currency of "hookers and blow."

Where Are We In The Business Cycle: A Troubling Chart From Morgan Stanley

According to Morgan Stanley, 2017 will be a year in which odds of a boom and bust have materially increased, consistent with a late-cycle US environment. So late, in fact, that one look at the chart below shows the US cycle has not only plateaued but is now stalling and is turning over.

Will Trumponomics Save Us From A Bust?

Can Trump-economics prevent the asset price inflation now infecting the global economy - with its origins in the radical monetary experiment under the Obama Administration - from moving on to its late deadly phase?

Brace For A Year Of "Peak Everything, Big Rotations" - Here Is BofA's Guide How To Trade It

1) Peak Liquidity: era of excess liquidity is over; 2) Peak Inequality: more fiscal stimulus to address inequality; 3) Peak Globalization: free movement of trade, labor, capital ending; FX wars starting; 4) Peak Deflation: low point in bond yields now behind us; 5) Trough Volatility: era of “flash volatility” and “pain trades” continues; 6) Peak Passive: active investors to outperform passive; 7) Transforming World: robotics, eCommerce constrain inflation upside

What "The Worst Bond Rout In 15 Years" Means For Stocks

"The paradigm has shifted in terms of inflation. Long-end interest rates are dangerous. Make sure you are being really careful about the long-end exposure as we saw this week." - Rick Rieder, CIO for global fixed income at BlackRock.

"The Frightening Thing Is People Don't Know They're Selling Insurance" - An Interview With An Ex-Canyon CDS Trader

“the world has now shifted completely in the opposite direction, that people are selling that insurance over and over and over again, not recognizing what they're actually selling, and not necessarily conducting an evaluation of, are there cheaper ways to sell that-- or more expensive ways to sell that same insurance, effectively capturing more premium for doing the same thing.

RBC: "Be Prepared For Another 'Vol-Control' Deleveraging Wave"

"At this frantic vol buying pace, with VIX +17% on the day, it won’t take much longer until further mechanical deleveraging is triggered from these extremely popular retail and ALM vehicles  Long story short, be prepared for another deleveraging wave (which could be happening ‘real time’ as I send) the longer vols stay at these levels, bc they’ve just been ‘stuck’ so low in recent weeks."