Rating Agencies

Biggest EU Banks Embark On The Mother Of All Debt Binges

Spain’s three biggest banks, Banco Santander, BBVA and Caixa Bank, have got off to a flying start this year having issued €8.6 billion in new debt, seven times the amount they sold during the same period of last year. The last time they rolled out so much debt so quickly was in 2007, the year that Spain’s spectacular real estate bubble reached its climactic peak.

Here Are The Best Hedges Against A Le Pen Victory

According to BofA, the best ways to hedge increased risks of a potential Eurosceptic win in the upcoming French election is favouring 10y peripheral spread wideners in Spain vs France, longs in 5y5y Germany and 5y Dutch sovereign CDS. In the options space, the banks recommends going long vol with a hybrid 6m10y strangle. In inflation, it likes 5y5y French CPI v HICP widener and a long 30y OATei breakeven vs inflation swap.

China Injects Economy With A Quarter Trillion In Debt In One Month, But The Full Story Is Much Scarier

"From a growth rate perspective, the speed of credit expansion is alarming. The current pace of credit growth in China is realistically in a range between 19% and 20%, well above the reported official TSF growth of 12.4% and new loan growth of 13.0% in September. Relative to GDP, China’s credit-to-GDP ratio currently in a range from 260% to 275% of GDP as of September 2016" - Barclays

Hillary: Deceit, Debt, & Delusions (Part 2)

Here’s the game being played behind the curtain, never to be revealed by Hillary, Yellen, the captured dying legacy media, or anyone beholden to the establishment for their paycheck or bribe...

Barclays Warns The Party Is Almost Over As Payouts Exceed Cash Flow By $115 Billion

Corporate buybacks plus dividends will surpass $1 trillion in 2016, for the first time ever, according to Barclays calculations. This means that payouts to shareholders will surpass total S&P500 cash flow by a whopping $115 billion. And with corporate balance sheets increasing encumbered, Barclays believes that the rate of payouts, rising at 20% in recent years, is about to grind to a halt, meaning that for stocks, the "party is almost over."

Deutsche Bank Stock Slides As Short-Term Funding Cost Rises

As the powers-that-be play whack-a-mole with various systemic risk indicators, desperately tamping down contagion concerns, amid no progress in strengthening the world's most systemically dangerous bank; we warned two weeks ago of yet another canary in the coalmine of Deutsche Bank's demise (that no one was looking at). This week, that canary... died.