There's trouble brewing in the leveraged loan market as cracks continue to show in post-crisis CLOs. As we reported late last month, the number of CLO 2.0 deals’ equity tranches currently having NAV below zero has risen to 453. Given that, we weren't terribly surprised to learn that 6 CLO 2.0s are failing their interest diversion tests and another 20 are within a point of hitting their triggers.
(1) Incoming Jan-Feb data still choppy; (2) Our Synthetic Growth Index (SGI) likely down for Jan and Feb, after up Sep-Dec; (3) As China slows, no problem is too small for a new policy fix; (4) Housing: too many vacant units, in the wrong places, wrong size and wrong price.; (5) SOEs: excess capacity, old, inefficient in most key China industries. (6) Equities: recent rally welcome but markets still broken just when more equity financing is needed. (7) NPLs: from past bad decisions, rising sharply.
Given the financial establishment’s astonishingly short-term memory and capacity to make even bigger mistakes than ever before, we now find ourselves in a very similar position today. Once again, the financial system is in desperate condition. And the data is all there for anyone who cares to look.
We now have an absolutely clear idea of why the Fed is impaled on its own petard. At the end of the day, managed rates will prove to be the ultimate destroyer of capitalism. They transform financial markets from organizers and allocators of real capital and the savings of producers and workers into gambling casinos which fuel massive speculative bubbles.
“Housing in Vancouver is insane — it was insane when I left and it’s more insane now. If you’re trying to do the startup thing full-time, it would have been really difficult with all the expenses.”
Unless stocks can reclaim this line, then we’re entering a full-scale bear market.
The "unsinkable" global financial system is rushing headlong toward its encounter with the iceberg, while the passengers and crew remain supremely confident and unaware of the risks, risks that will only become "obvious" after the global financial system has broken in half and sunk to the bottom, destroying most of those who believed it unsinkable.
Even if you take the most forward looking date of 2018…we are on the cusp of a major change. Are you prepared?
We now have the candidate for the "next Fukushima" - one of the faults that run under the premises of Hokuriku Electric Power Co.’s Shika nuclear power plant in Ishikawa Prefecture can be reasonably concluded to be active, according to an evaluation compiled last Thursday by an expert panel at the Nuclear Regulation Authority. According to the Shimbun, the No. 1 reactor at the Shika plant may have to be decommissioned under the new nuclear regulatory standards, which ban the construction of important facilities above an active fault. The fault in question lies directly under the No. 1 reactor building.
Fukushima Five Years Later: "The Fuel Rods Melted Through Containment And Nobody Knows Where They Are Now"Submitted by Tyler Durden on 03/12/2016 00:27 -0400
:The fuel rods melted through their containment vessels in the reactors, and no one knows exactly where they are now... Tepco has been developing robots, which can swim under water and negotiate obstacles in damaged tunnels and piping to search for the melted fuel rods. But as soon as they get close to the reactors, the radiation destroys their wiring and renders them useless."
Trump's recent pivot to placate potential moderate voters may already be reaping results, and in a most unexpected place - Hollywood.
Economic warfare doesn’t always go according to plan. It appears the Saudis have overplayed their hand... big time.
CPI is turning up, as the economy weakens... it's 1937 all over again (next up the 40% market meltdown).
Xi's "Tigers and Flies" campaign may have been reasonably effective when it came to rooting out corruption in the Party and the "crackdown" on "manipulators" might served to strike fear in the hearts of any Chinese who thought about shorting stocks last autumn, but that's not good enough for China. No, a true police state needs "pre-crime."
The BIS’ Claudio Borio was vindicated in January - and it was a long time coming.