Rating Agencies

Tyler Durden's picture

Moody's Downgrades Glencore To Lowest Investment Grade Rating As CDS Trade A Multi-Year Highs





Weak earnings performance in marketing operations below the current EBIT guidance of $2.4-$2.7 billion could place negative pressure on the Baa3 ratings in the absence of any mitigating measures. A weakening of the company's liquidity position, delays with the planned divestments in 2016 or a material reduction in its working capital funding capacities by the banks, as well as sustained high leverage with adjusted debt/EBITDA exceeding 4x, will also put negative pressure on the Baa3 ratings."

 
Tyler Durden's picture

Markets Brace For More Fund Liquidations As Record Outflows Slam Debt Funds





As new investor liquidity evaporates and as billions are redeemed first from the junk bond universe, then investment grade and then loans, the debt crisis which was unleashed in anticipation of the Fed's rate hike, is about to get much worse, and lead to even more prominent hedge fund "gates" and liquidations.

 
Tyler Durden's picture

What If Economists Applied Their Own Theories... To Themselves





It appears that a main preoccupation of economists – the self declared “behavioral economists” prominent among them – is to show how dumb people are as consumers and in assessing risks. Drawn to logical conclusion, this implies that economists, advising benevolent dictators are the solution. In ancient Greece people flocked to oracles and sought guidance.; today, Councils of Economic Advisers, IMF, OECD, Nobel prizes sustain perceptions that "macro- strology" and much else of what economists do is "science."

 
Sprott Money's picture

Big Banks Caught Using Credit Default Swaps To Destroy Nations





The Big Banks manipulate credit default swaps to perpetrate economic terrorism against other nations in the world, where they literally destroy the economies of those victim-nations. It used to be a theory, but now the proof is finally emerging. 

 
Tyler Durden's picture

3 Signs We've Reached 'The Top' In The Financial System





Duh. It was so obvious looking back. This is not a consequence-free environment... it’s time to find safety.

 
Tyler Durden's picture

South African Bonds Crash, Rand Hits Record Low After FinMin Fired





Without giving any reasons, South African President Jacob Zuma has fired his finance minister (after just 19 months in office). This has shocked investors, already anxious about the nation's surging debt and sluggish economy and South African bonds and FX have collapsed andhas given rating agencies “perfect justification” for further downgrades and the loss of investment grade status. 10Y yields spiked 140bps to 10.18% - the highest since July 2008 - and CDS have soared. The Rand has crashed to new record lows above 15 to the USD.

 
Tyler Durden's picture

The Largest US Pipeline Operator Is Plunging After It Just Cut Its Dividend By 74%





Everything is not awesome. We have three small words for all those MLP-holders: "Paid to wait."

 
Tyler Durden's picture

"The Fed Doesn't Get It" A Rate-Hike Means People "Will Be Carried Out On Stretchers"





"It is our humble belief that the consensus at the Fed does not fully understand the magnitude of the problems in corporate credit markets and the unintended consequences of their policy actions."

 
Tyler Durden's picture

4 Telltale Signs The Credit Cycle Is Turning Now





"... As the tide of leverage goes out, the full extent of irresponsible lending becomes apparent. The previously virtuous cycle between risk spreads and fundamentals goes into reverse, with lower prices, defaults, and downgrades forcing leveraged investors to sell, leading to even lower prices."

 
Tyler Durden's picture

"This Isn't Going To End Well" - Junk Bonds Under Pressure





There are seemingly always “good reasons” why troubles in a sector of the credit markets are supposed to be ignored – or so people are telling us, every single time. Some still recall how the developing problems in the sub-prime sector of the mortgage credit market were greeted by officials and countless market observers in the beginning in 2007. Meanwhile, the foundation of the economy continues to look rotten (the newest round of Fed surveys has begun with another bomb and other manufacturing-related data continue to disappoint as well). This isn’t going to end well, if history is any guide.

 
Tyler Durden's picture

"No QE For You!": ECB May Cut "Lifeline" To Portugal After Socialists Overthrow Government





In what sounds like the plot of a McCarthy-era propaganda spy novel, the Socialists and Communists have overthrown the government in Portugal. That means it's time for the troika to start pushing back against the undesirables by threatening the country with financial ruin. Just call it "tough love." 

 
Tyler Durden's picture

The Table Is Set For The Next Financial Crisis





Some people will never learn... ever. What is happening today is nothing more than rearranging the deck chairs on the Titanic. The iceberg has been struck, we’re taking on water, and this sucker is going to sink. Game Over.

 
Tyler Durden's picture

Rousseff Coup Could Sink Brazil, Emerging Markets





Rousseff - hand-picked by Lula da Silva to succeed him - appears to be caught up in da Silva's backdraft. Opposition parties also claim she violated Brazil's fiscal responsibility law when she doctored government accounts to allow more public spending prior to the October election last year. Rousseff in turn described the attempt to use Brazil's economic crisis as an opportunity to seize power a modern day coup.

 
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