• Monetary Metals
    02/09/2016 - 02:05
    On Jan 28, the price of silver flash crashed. This irregularity occurred around the silver fix. The spot price was $14.40 but the fix was $13.58.

Rating Agencies

Tyler Durden's picture

S&P Downgrades Glencore To Lowest Investment Grade Rating





Overnight, one of the two rating agencies, Standard and Poors, came one step closer to that fateful moment of junking Glencore when it downgraded Glencore, however it decided to throw the company one last lifeline by keeping it at the very lowest investment grade rating, and instead of cutting it from BBB to single B or CCC where its CDS and bond yield implies the company should be trading, it kept it a BBB-.

 
EconMatters's picture

The Big Short of 'Mother Frackers'





While energy E&P companies were dropping like flies in 2015, credit rating agencies and banks have remained awfully quiet.... 

 
Tyler Durden's picture

Bad Loans Pile Up In Alberta, As Oil Bust Weighs On State Lender





Just in case you needed another reason to fear for the worst in Alberta, Moody’s and DBRS are becoming increasingly concerned about crown corporation ATB Financial. “Alberta's debt situation was under the microscope last week, with [the] two rating agencies taking a look at the province's fiscal situation and economy and not liking what they saw,” CBC reports.

 
Tyler Durden's picture

With EMs And SWFs Pushing Markets Lower, Here Are The Three Dramatic Conclusions





Earlier today we showed an amazing schematic courtesy of Citi's Matt King: if one includes the reserve liquidation by various EMs and SWF, and nets it against liquidity injections by DM central banks (and the PBOC), one gets a perfect quantitative, not just qualitative, walk thru on how to trade markets: in other words one can measure, using high frequency data in real-time, just where markets should trade based on liquidity flows and promptly profit from any arbitrage opportunities. But aside from the potential for substantial profits, there are more profound implications. Matt King lays them out as follows..

 
Tyler Durden's picture

Moody's Just Put Over Half A Trillion Dollars In Energy Debt On Downgrade Review





Moody's took the global energy sector to the woodshed, placing 175 global oil, gas and mining companies and groups on review for a downgrade due to a prolonged rout in global commodities prices that it says could remain depressed indefinitely. Here are the 69 US, 19 Canadian and 13 European companies (the full list of all global companies can be found here) that just Moody's black list, a grand total of 101 companies which now face a downgrade threat on just about $540 billion in total debt.

 
Tyler Durden's picture

S&P's Downgrade (By A German Analyst) Is A "Politically-Motivated" Decision Aimed At Polish Authorities





The Standard and Poor’s rating agency, notorious for its controversial assessments, has this time bashed Poland in the wake of the anti-Polish frenzy whipped up by the European media. To be more precise, Poland was assailed by a German S&P analyst who lowered Poland’s rating from A- to BBB+, despite the economic data that by no means warrant such an evaluation.

 
Tyler Durden's picture

Glencore's "Investment Grade" Bonds Just Took Out September Crash Lows: Downgrade To Junk Imminent





Glencore's 2021 bonds just hit a 5 year low, taking out the September crash levels, and trading at about 64 cents on the dollar. Following the recent junking of Noble Group which has sent its stock price to 12 year lows and hitning that a bankruptcy is now virtually inevitable, we expect Glencore to be junked any minute, with the ensuing cascade of margin and collateral calls testing just how "systematically unimportant" the world's largest commodity traders really are.

 
Tyler Durden's picture

S&P Enters The Latest European Scandal: Downgrades Poland From A- To BBB+





As so often happens, whenever there is a political spat in Europe, the rating agencies are quickly involved (thing S&P and Moody's downgrades and upgrades of Greece depending on how well the vassal nation is "behaving"), and moments ago S&P downgraded Poland from A- to BBB+ outlook negative, precisely due to Poland's new media law which has been the topic of so much consternation over the past week. In other words, S&P is now nothing more than a lackey for Brussels, threatening to send Polish yields higher if Poland does not fall in line.

 
Tyler Durden's picture

Glencore CDS Soar To 6 Year High After Bankruptcy Of US Subsidiary, Ongoing Copper Carnage





The default of Sherwin Alumina, a US subsidiary of Glencore, refocused the market's attention on the one company which in September was among the hardest hit in the post-China devaluation rout, and the immediate result was that while Glencore stock plunged and is once again approaching all time lows, a more ominous development was that GLEN's CDS spiked to as much as 950 basis points, the highest since April 2009 and suggesting far more pain is in store for the commodity trading giant.

 
Tyler Durden's picture

Noble Group's "Margin Call" Part II: The Enron Moment





Our balance sheet - the strongest in recent history - represents a significant advantage as we continue to identify high value growth opportunities across the products and geographies we operate in. Maintaining out investment grade rating with the international rating agencies is a vital part of this strategy.

- Noble Group 2014 Annual Report, p. 27

 
Tyler Durden's picture

Junk Isn't Very Noble: Asia's Largest Commodity Trader Responds To Moody's Downgrade





For now Noble refuses to throw in the towel, and overnight released the following statement on the Singapore Exchange where its massively beaten down stock trades.

 
Tyler Durden's picture

Asia's Largest Commodity Trader Was Just Downgraded To Junk: Collateral Calls Next?





"Moody's downgrades Noble Group to Ba1; outlook negative.... "The downgrade of Noble's ratings reflects Moody's concerns over the company's liquidity," says Joe Morrison, a Moody's Vice President and Senior Credit Officer. The Ba1 ratings also reflect low levels of profitability and consistent negative free cash flow from core operating activities, which exclude proceeds from asset sales."

 
Tyler Durden's picture

The Big Short: "Every American Should See This Movie & Be F##king Pissed Off"





"This is a dangerous movie for Wall Street, the government, and the establishment in general. ... cuts through the crap and reveals those in power to be corrupt, greedy weasels who aren’t really as smart as they want you to think they are. The finale of the movie is sobering and infuriating."

 
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