NASDAQ

Massively Levered Beta: Tepper Adds $1.3 Billion, Or 33% Of Long Equity AUM, In SPY, QQQ Calls

While the market was topping out, Tepper was actively adding to his bullish exposure, but not in the form of many new stock positions, when in fact he partially unloaded 15 of his 38 positions, while adding 12 new positions. It was 2 of these new additions that were particularly notable: just like in early 2014, Tepper is once again back to index investing, having added a whopping $939 million in notional-equivalent SPY Calls, and $413 million in notional-equivalent QQQ Calls. In other words, Tepper is once again making a very levered beta bet that the market will resume climbing, and he can capture the upside through SPY and QQQ calls.

Here We Go Again: Verizon To Buy AOL Marking Another Tech Bubble Top

The last time AOL was involved in a mega merger was January 2000, when AOL acquired Time Warner for $182 billion in what was the mega deal of the last tech bubble, creating a $350 billion behemoth. Fast forward 15 years and here is AOL again in yet another period-defining if far, far smaller transaction once again, when moments ago Verizon announced that it would acquire AOL for $50/share, a deal value of $4 .4billion. And with that the golden age of digital (and in many cases robotic) content, has now been top-ticked.

 

This Is What Happened To Tinder's Predecessor

Before there was Tinder, which just won a student the Ira Sohn contest for best write up for its "underappreciated valuation" in IAC, there was Adult Friend Finder, aka FriendFinder networks, a website whose sole purposes was finding, to put it bluntly, a fuck buddy. Here is a quick remind what happened to Tinder's predecessor.

Back By Popular Demand: Presenting The Blow-Off Top In Stock Buybacks

Yesterday we showed the absolutely ridiculous move that is taking place in corporate buyback announcements. And since the blackout period for buybacks is officially over, and announcements can now become executions courtesy of Wall Street's VWAP algos, here again, by popular demand, is the chart showing the record blow-off top in debt-funded stock buybacks which together with central bank buying (such as the SNB) should be enough to support the market even as outflows from equity funds have never been higher.

Frontrunning: May 11

  • Full picture of Clinton charities' foreign government funding remains elusive (Reuters)
  • Greece Readies for Another Week of Deadlines (BBG)
  • Greece says deal will be 'difficult' at Eurogroup meeting (Reuters)
  • Saudi Arabia’s Rulers Snub Arab Summit, Clouding U.S. Bid for Iran Deal (WSJ)
  • Saudi Aramco Said to Plan Spending $80 Billion Overseas (BBG)
  • The $900 Billion Influx That’s Wreaking Havoc in U.S. Bills (BBG)
  • Cameron rules out another Scottish independence vote (Reuters)
  • Banks Prep Defense for Anti-Wall Street Campaigns (WSJ)

The 90,000 Square Foot, 100 Million Dollar Home That Is A Metaphor For America

Fed-created bubbles are inevitably going to implode, because they have no relation to economic reality whatsoever.  And when they implode, millions of Americans are going to be financially wiped out. Just like David and Jackie Siegel, “America’s time-share king”, America just keeps on making the same mistakes over and over again - we simply can’t help ourselves. And in the end, we will all pay a great, great price for our utter foolishness.

Buyback Bonanza, Margin Madness Behind US Equity Rally

Morgan Stanley breaks down the buyback-equity rally relationship while WSJ flags "big borrowing" by both corporations and investors. In short: corporate debt issuance is at record levels and so are buybacks, stock prices, and margin accounts. When the cycle finally turns, look out below.