Kyle Bass

Horseman Capital Asks "Is China Running Out Of Money"

"If Chinese foreign reserves continue to fall and the PBOC wants to maintain control of the exchange rate, they will need to face some difficult choices... Investors should be prepared for bigger falls in the Chinese Yuan."

Hugh Hendry Interviewed On His "Eureka Moment" Trade Of The Day, QE, China, The Dollar And Much More

In a recent interview with Macro Voices, Hugh Hendry is asked about the trade he has on in his fund, to which the Scotsman says that his team recently had a “eureka moment” and figured out how to design a trade, which has a negative carry when viewed in simple terms, such that they preserve the asymmetric of risk/reward while converting it to a positive-carry trade by adding another “European sovereign component to the trade”.

With Kuroda Under Pressure To Increase Stimulus Again, Dissenters Appear

With the yen strengthening ~12% against the US dollar and the Nikkei down ~10% YTD, it seems Haruhiko “Peter Pan” Kuroda is having a difficult time working his magic in favor of Abenomics. As the WSJ reports, Kuroda is under increasing pressure from the Prime Minister’s advisers to coordinate efforts to jumpstart the economy. Earlier this month, we first reported of the secretive meeting between Kuroda and Bernanke, where the former Fed Chairman urged Japan to unleash helicopter money.

How Did China's GDP Beat? By "Shoveling A Stunning Amount Of Cash Into The Economy"

China's modest GDP stabilization has come at a cost, a big one. Instead of tackling a debt pile estimated by Rabobank at a gargantuan 3.5x of the economy’s size, policy makers are only making it worse with a renewed credit binge. "The amount of cash Beijing is shoveling into the economy is stunning," said Andrew Collier.

Kyle Bass Was Right: Here Is SocGen's Primer How To Trade The Biggest Yuan "Depreciation Wave" Yet

The new risk scenario for CNY is 8.0 (20% increase in USD-CNY). The caveat is that the pain threshold for the market appears to be much higher than before and the implications for the global financial markets will primarily depend on the speed of depreciation. We believe that it would take significantly more pressure on capital flows than what we have seen over the past few years, or an economic hard landing, for our risk scenario to unfold.

The Great Market Tide Has Now Shifted

Risk-on assets (stocks) rising at the same time as safe-haven assets is akin to dogs marrying cats and living happily ever after. What the heck is going on? Why is the market acting so schizophrenic? What’s changed?