Muni Bonds
What Happens When Stocks Catch Up With Commodities?
Submitted by Phoenix Capital Research on 12/15/2015 12:19 -0500We’ve already gotten a taste of what happens when asset classes finally “adjust” to underlying “demand” with the commodity markets: having operated based on Central Bank money printing for five years, they then wiped out ALL of those gains in six months.
ECB's Coeure Sees "Little Bubbles"
Submitted by Tyler Durden on 11/16/2015 11:58 -0500It would appear The ECB has undertaken the same baffle'em with bullshit meme the rest of the world's central planners have embraced. Speaking this morning (this time not to a private hedge fund group), The ECB's Benoit Coeure stated unequivocally that "The ECB doesn't see overvalued asset prices." Well that's nice, apart from the -38bps yield on German 2Y notes. But then... to lull investors from their stupor, Coeure unleashed, "The ECB does see "little bubbles" in some markets." Which ones we can only wonder as they prepare to buy Muni bonds...
The ECB Should Stop QE Before Draghi Causes A "Financial Crisis", German "Wise Men" Warn
Submitted by Tyler Durden on 11/11/2015 18:30 -0500"The ECB’s bond buying programme has created favourable financing conditions and provides member states with an incentive to defer much-needed budget consolidation and structural reforms. However, further structural reforms to strengthen markets and competitiveness are crucial for a self-sustaining economic recovery. In addition, monetary policy is leading to a build-up of risks to financial stability which could pave the way for a new financial crisis."
EUR Slides On News ECB May Expand QE To Muni Bonds Next
Submitted by Tyler Durden on 11/11/2015 10:58 -0500After a disappointingly un-uber-dovish speech this morning by Draghi,it appears The ECB needed to full ease-tard to make sure 'markets' believe. EURUSD tumbld 50 pips - to the lows of the day - after Reuters reports that, in what is becoming increasingly clear desperation, The ECB is mulling buying the debt of cities and regions.
Sweden Warns That Government Debt Can Be Risky... Unless It's Swedish Government Debt
Submitted by Tyler Durden on 10/27/2015 14:25 -0500Sweden’s Financial Supervisory Authority wants banks to reconsider the notion that all sovereign debt is risk-free. That said, there's nothing to worry about if the sovereign debt in question is issued by Sweden. And that's a relief if you're the Swedish central bank, because you've been buying a whole lot of Swedish government bonds.
Is Mario Draghi About To Go Full-Kuroda? RBS Says ECB Could Buy Stocks
Submitted by Tyler Durden on 10/23/2015 14:05 -0500Now that Mario Draghi has telegraphed more easing from the ECB come December, the question is what exactly the bank will announce. Will Draghi cut the depo rate further into negative territory? How long into 2017 will PSPP be extended? Given the scarcity of purchasable paper, will the ECB expand the universe of eligible assets and if so, will Draghi go full-Kuroda knowing full well that you never, ever go full-Kuroda?
Ignorance Is Not Bliss
Submitted by Tyler Durden on 10/15/2015 13:07 -0500You’re doing yourself a disservice if you don't have a basic working knowledge of what, say, a volatility surface means. We're not saying that we all have to become volatility traders to survive in the market jungle today, any more than we all have to become game theorists to avoid being the sucker at the Fed’s communication policy table. And if you want to remove yourself as much as possible from the machines, then find a niche in the public markets where dark strategies have little sway. Muni bonds, say, or MLPs. The machines will find you eventually, but for now you’re safe. But if you’re a traditional investor whose sandbox includes big markets like the S&P 500, then you’re only disadvantaging yourself by ignoring this stuff. Ignorance is not bliss...
A Desperate Sweden Looks To "Fix" Broken QE With Massive Muni Monetizing Madness
Submitted by Tyler Durden on 10/14/2015 11:00 -0500Way back in June we documented the “curious” case of Sweden’s broken QE and when we used the term “broken”, we didn’t just mean that inflation expectations weren’t moving higher. We meant that bond yields were rising as the adverse impact from the illiquidity "premium" surpassed the price appreciation benefit from frontrun central bank buying. Fast forward three months and Sweden looks set to “solve” the broken QE problem and by extension ensure it can stay in the currency war games by expanding the list of eligible assets to muni bonds.
HSBC Is Now "Highly Risk Averse" Amid Growth Worries, Loss Of Central Bank Put
Submitted by Tyler Durden on 10/13/2015 18:30 -0500A confluence of circumstances have conspired to make asset allocation a somewhat vexing task these days. The so called “tricky trinity” is comprised of the following three factors: decelerating global growth, the absence of a policy put, and risk premia offering but a limited buffer. For HSBC, this means "remaining highly risk averse" going forward.
China's Debt Load To Hit 250% Of GDP In 5 Years, IMF Says
Submitted by Tyler Durden on 08/15/2015 19:15 -0500Peak Insanity: Chinese Brokers Now Selling Margin Loan-Backed Securities
Submitted by Tyler Durden on 08/08/2015 20:30 -0500"The risk could be that brokers may not be able to execute forced liquidations in case of sharp declines in the overall stock market. It can be positive if they are using the funds to develop new businesses but negative for China’s financial market if they keep lending out for margin financing."
Deflation Is Winning - Beware!
Submitted by Tyler Durden on 07/26/2015 12:30 -0500- Australia
- Bank of Japan
- Bond
- Brazil
- Central Banks
- China
- Chris Martenson
- Corruption
- default
- France
- Greece
- Gross Domestic Product
- Hyperinflation
- Japan
- Market Manipulation
- Mexico
- Michael Pettis
- Muni Bonds
- Puerto Rico
- Real estate
- Reality
- Recession
- Shenzhen
- Sovereign Debt
- Swiss National Bank
- Volatility
- Yen
- Yuan
Deflation is back on the front burner and it's going to destroy all of the careful central planning and related market manipulation of the past 6 years. Clear signs from the periphery indicate that a destructive deflationary pulse has been unleashed. After years of suppression, the forces of reality are threatening to overwhelm our managed global ""markets"'. And it's about damn time.
Greece, China, & Russia – A Plan B For Tsipras
Submitted by Tyler Durden on 07/04/2015 19:45 -0500"Greece would survive, have new powerful friends, have bargaining chips that neither Europe nor America could ignore; China would have projected the use of the Yuan right in to Europe, and Russia would have more than a toe-hold for military power right inside NATO. If I was Tsipras or Varoufakis I would be on the phone right now."
Chinese QE Calls Officially Begin: Bond Swap "Sucks Liquidity", "Contributes To Stock Slump", Broker Claims
Submitted by Tyler Durden on 06/30/2015 19:40 -0500"Local debt issuance sucks liquidity, reduces banks’ capital to buy bonds, contributes to stock slump," Haitong Securities says. The only option, according to the firm, is outright debt monetization by the PBoC.
This Insane Debt Chart Explains Why Chinese QE Is Inevitable
Submitted by Tyler Durden on 06/29/2015 14:40 -0500Because the central government is ultimately responsible for guaranteeing local government debt, and because yields on the new muni bonds are so close to those on treasurys, the newly issued local government bonds are really just treasury bonds, meaning that, in essence, the supply of Chinese government bonds is set to jump by CNY2 trillion in the coming months. If all of the local government debt ends up being refinanced, the end result will be the equivalent on CNY20 trillion in additional treasury supply.




