Private Equity

There is only one way to end the financial tyranny of the Federal Reserve--abolish it, and put an end to the predatory pathologies of its policies...

• Iran, powers push for nuclear deal as clock ticks toward deadline (Reuters)
• How DIY Bond Traders Displaced Wall Street’s Hot Shots (BBG)
• MillerCoors Caught in a Downdraft (WSJ)
• Saudi-led strikes again hit Yemen overnight (Reuters)
• Even With Free Money, Merkel Still Reluctant to Spend (BBG)
• Britain Uses Tax Breaks to Lure Digital-Game Developers (WSJ)
• China to Insure Deposits in Move Toward Scrapping Rate Curbs (BBG)
• As China Expands Its Navy, the U.S. Grows Wary (WSJ)

Back in September 2013 we wrote "Coming Soon To A Theater Near You: MBIA's $1 Billion World War Z" in which we explained why MBIA will soon have a substantial problem (amounting to just about around $600 million) with several CLOs which we dubbed "Zombie CLOs" or as they were actually known, Zohar, on which it had written insurance, and which would become evident sooner or later once someone took a long, hard look at the collateral manager of the CLOs, namely Lynn Tilton's Patriarch Partners. Well, finally someone did take a long, hard look and today, our warning comes full circle following a shocker out of the SEC accusing Lynn Tilton of fraud and of "hiding the poor performance of loan assets in three collateralized loan obligation (CLO) funds they manage."

How will the central planners contain this MONSTER?!

• Saudi Arabia, allies launch air strikes in Yemen against Houthi fighters (Reuters)
• Pilot on Crashed Jet Was Locked Out of Cockpit, NY Times Says (BBG)
• Why Bombing This Tiny Oil Producer Is Roiling the Energy Market (BBG)
• U.S.-led coalition, Iraqis pound Islamic State in Tikrit (Reuters)
• Munger Says Prepare for Harder World as Buying Power Slides (BBG),Mocks Greek ‘Idiotic Idea’ You Can Vote Yourself Rich (BBG)
• The Central Banker Who Saved the Russian Economy From the Abyss (BBG)
• Bank of Canada says foreign buyers complicate housing market (Reuters)
• Investors Scoop Up Companies’ Bonds (WSJ)
• Espirito Santo Probe Turns Mariana Mortagua Into Portuguese Star (BBG)

After three days of unexpected market weakness without an apparent cause, especially since after 7 years of conditioning, the algos have been habituated to buy on both good and bad news, overnight futures are getting weary, and futures are barely up, at least before this morning's transitory FX-driven stop hunt higher. Whether this is due to the previously noted "blackout period" for stock buybacks which started a few days ago and continues until the first week of May is unclear, but should the recent "dramatic" stock weakness persist, expect Bullard to once again flip flop and suggesting it is clearly time to hike rates, as long as the S&P does not drop more than 5%. In that case, QE4 is clearly warranted.

The $665 Million Evolution in a Space Nobody Respected a Year Ago - Already Outpacing the Internet Circa 1994

When I first came across the title to this article, I didn’t think much of it. In fact, I almost didn’t even click the link thinking it was just a repeat of a prior expose I highlighted in the post: Hillary Clinton Exposed Part 2 – Clinton Foundation Took Millions From Countries That Also Fund ISIS. Fortunately, I did decide to take a look and pretty soon my jaw absolutely hit the floor. Although the Wall Street Journal didn’t play up the connection, I was stunned to see that of all the oligarchs connected to foreign governments who donated to the Clinton Foundation while she was Secretary of State, Ukraine was at the very top.

University of California President Janet Napolitano wants students' voices to be heard — unless it means "listening to their crap."

• Israelis vote as 'King Bibi's' reign hangs in the balance (Reuters), Factbox: Main candidates in Israel's election (Reuters)
• Iran Can Add Million Barrels a Day of Oil If Sanctions Halt (BBG)
• Kremlin rules out handing back Crimea to Ukraine (Reuters)
• Saudi Arabia Needs More Oil to Feed Local Refinery Expansion (BBG)
• How Lafarge’s CEO Went From Holcim Merger Architect to Obstacle (BBG)
• When Yellen Gets Less Predictable She’s Getting Back to Normal (BBG)
• Iran nuclear talks intensify as sides face tough issues (Reuters)
• Debunking $1.4 Trillion Europe Debt Myth in Post-Heta Age (BBG)

As Ronald Reagan said, trust, but verify!

• Dollar at 12-year peak versus euro, emerging markets spooked (Reuters)
• CIA sought to hack Apple iPhones from earliest days (Reuters)
• Draghi Urged Greece to Allow Troika Back Before It’s Late (BBG)
• Brent crude dips below $58 on strong dollar and supply (Reuters)
• Credit Suisse replaces CEO Dougan with Prudential's Thiam (Reuters)
• More "distressed" energy M&A: Verisk buys Wood Mackenzie for £1.85bn (FT)
• Prepare for a surge in defaults: Investors Are Buying Stocks and Bonds From Energy Producers Amid Oil Price Drop (WSJ)
• Private equity executive ordered to pay £72m to ex-wife (FT)
• Democratic donors unfazed by Hillary Clinton's use of private email (Reuters)
• Expensive Hepatitis C Medications Drive Prescription-Drug Spending (WSJ)
• 'ISIS Hackers' Almost Certainly Not ISIS Hackers (NBC)

It may come as a surprise to some that across from the stark Greek economic calamity is an industry that has swam, so to say, while everything else has sunk, because while virtually every other aspect of the Greek economy is in shambles, its shipping industry is not only the pride of the nation, but has created more Greek billionaires than any other aspect of the economy. As Bloomberg recounts, Greeks have long dominated the shipping business. The nation’s fleet, numbering 3,669 vessels in 2013, is the largest in the world, according to the annual report of the Union of Greek Shipowners, making up more than 7 percent of the Greek economy and providing 192,000 jobs in 2013. And, perhaps most relevant, Greek shipping has also made billionaires of the country’s four largest ship owners by tonnage: John Angelicoussis, George Prokopiou, Peter Livanos and George Economou. The quartet control a combined fortune of $7.6 billion. It is these billionaires that are now suddenly sweating...

• ECB Starts Buying German, Italian Government Bonds Under QE Plan (BBG)
• Creditors Reject Greece's Reform Proposals (BBG)
• Is Apple Watch the Timex digital watch of the Internet era? (Reuters)
• Tesla shedding jobs in China as sales target missed (Reuters)
• Malaysia Airlines says expired battery on MH370 did not hinder search (Reuters)
• Gunmen kill more than 12 Islamic State militants in eastern Syria (Reuters)
• GM Plans Share Buyback, Averting Proxy Fight (WSJ)
• Wisconsin capital marked by third day of protests after police shooting (Reuters)

Blackstone, who already may be your landlord, is reportedly close to buying the nation's second largest skyscraper in a $1.5 billion deal.