Rating Agencies

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.

Turkey Lashes Out At Moody's After Downgrade To "Junk" Sends Turkish Assets Plunging

Turkish assets plummeted the most since an attempted coup in July and credit risk climbed after Moody’s Investors Service cut the country’s sovereign rating to junk. The immediate response by the Turkish administration was to lash out at Moody's calling the decision "politically-motivated", after a similar downgrade by S&P led Erdogan to acuse the agency of siding with coup plotters.

"It Takes A Village To Maintain A Dangerous Financial System"

"...the motivations and actions (or inaction) of individuals in the financial system, governments, central banks, academia and the media that collectively contribute to the persistence of a dangerous and distorted financial system and inadequate, poorly designed regulations.  The underlying problem is a powerful mix of distorted incentives, ignorance, confusion, and lack of accountability. Willful blindness seems to play a role in flawed claims by the system’s enablers that obscure reality and muddle the policy debate."

With All Eyes On Tonight's BOJ Announcement, A "Minor" Snag Emerges

With all eyes on the BOJ's decision in several hours, an announcement which is expected to contain some component of government deficit funding attached to it, or helicopter-lite, a "minor" snag has emerged in what Japan has affectionately titled the "emergency, peace of mind realization, overall spending measures" fiscal package, namely that only about a quarter of the total JPY 28 trillion in new stimulus is in the form of actual spending.

Citi Is Stunned How Quickly The "Extraordinary Political Backdrop" Is Deteriorating

"These developments point to a marked increase in political risks in systemically-significant countries. At the start of the year, we flagged many of these as  well as introducing our thesis that rising Geopolitical Risks, accompanied by rising "Vox Populi" risks such as Brexit and changing US politics, were at risk of converging in new and powerful ways. Even so, we did not anticipate quite how many would transpire, let alone within such a compressed timeframe."

IBM "Beats" Despite 17th Straight Revenue Decline; Margin Miss; Spike In Net Debt

After 16 consecutive quarters, or 4 years, of declining annual revenue growth, there were some whispers that this could be the quarter IBM finally breaks the trend. Alas, it was not meant to be, and moments ago IBM reported Q2 revenues of $20.24BN, which will beating consensus of $20.03BN, was still 2.8% lower than a year ago. But more troubling is that despite the relatively modest drop in revenue, GAAP profit tumbled 27% to $2.61BN, with Net Income plunging 29% to $2.5BN.