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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

"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

European Stocks, US Futures Surge On Last Minute Hopes Of "Extraordinary Policy Easing" By Mario Draghi





Yesterday's market swoon which unwound all of Tuesday's gains on concerns about a hawkish Fed and fears about terrorism in the US, are now completely forgotten, and have been replaced with the latest daily round of pre-ECB euphoria, driven by hopes that Mario Draghi will announce even more dovish details to Europe's Q€ 2 than just a 10 bps rate cut and a boost to QE more than €10 billion, both of which have been already priced in.

 
rcwhalen's picture

On Credit Default Swaps





"This is legal?" Stephanie Ruhle on CDS after watching "The Big Short" (Bloomberg TV) 

 
Tyler Durden's picture

S&P Just Warned Asia's Largest Commodity Trader It May Be Junked





As usual, S&P was late, but just over three months after our explicit warning, the rating agency finally came out with the catalyst we have been expecting when moments ago it said that it had "placed its 'BBB-' long-term corporate credit rating on Hong Kong-based supply-chain management service provider Noble Group Ltd. and the  'BBB-' issue rating on the company's senior unsecured notes on CreditWatch  with negative implications." In other words, Asia's Glencore is about to be junked.

 
Tyler Durden's picture

Subprime Auto Goes Full-Retard: Lender Sells $154 Million ABS Deal Backed By Loans To Borrowers With No Credit





Remember Skopos Financial, the US subprime auto lender run by Santander Consumer veterans? Well, in a testament to just how desperate America is to perpetuate the US auto market "renaissance," the company just sold $154 millon worth of paper to investors partially backed by loans to borrowers with no credit score.

 
Tyler Durden's picture

Moody's Says Failure To Raise Debt Limit Does Not Mean Default As Jack Lew Pleads To "Honor Our Obligations"





In an op-ed released today in the USA Today, the US Treasury Secretary takes his appeal to raise the U.S. debt target once again, this time to the $19.6 trillion number disclosed here previously, by pointing fingers at "some in Congress" who "are endangering this progress by once again manufacturing a crisis for our country. By waiting to the last minute to act on the debt limit, Congress could cause a terrible accident. This is not an abstraction; failure to raise the debt limit would mean devastating impacts for taxpayers, consumers and businesses." Only this is not really true...

 
Tyler Durden's picture

Fitch Downgrades Brazil From BBB To BBB-, Outlook Negative - Full Text





Brazil's economic recession is likely to be deeper and longer than Fitch's earlier expectations and its performance has diverged materially from those of its rating peers. Medium-term prospects also look weak compared to peers and most other large emerging markets. Fitch forecasts that Brazil's economy will contract by 3% and 1%, respectively in 2015 and 2016 before recording modest growth in 2017, with risks skewed largely to the downside.

 
Tyler Durden's picture

Meanwhile, Brazil's Currency Just Plunged To An All-Time Low...





The negative feedback look between Brazil's political and economic crises is serving to make each day worse than the last. Tuesday was no exception...

 
Tyler Durden's picture

Moody's Downgrades France, Blames "Political Constraints", Sees No Material Reduction In Debt Burden





Citing "continuing weakness in the medium-term growth outlook," Moody's has downgraded France:

*FRANCE CUT TO Aa2 FROM Aa1 BY MOODY'S, OUTLOOK TO STABLE

Apearing to blame The EU's "institutional and political constraints," Moody's expects French growth to be at most 1.5% and does not expect the debt burden to be materially reduced this decade.

 
Tyler Durden's picture

Glencore's "Doomsday" Plan Disappoints As CDS Resumes Rise; Question Emerges: "What Happens If Company Fails"





Some have started to ask: what happens if Glencore were to fail? Well, since Glencore is not just a miner, but probably the world's largest commodity trading desk, and is a key commodity counterparty for everyone, the answer is simple: Lehman... only this time in the commodity space.

 
Tyler Durden's picture

"Liar Loans" Are Back! 2008 Here We Come





Liar loans are back from the dead which means that if you look under the hood, you might just have a shoddy credit or two hiding in the collateral pool of your triple-A mortgage-backed paper. Meanwhile, in a further sign that we've learned nothing since the crisis, non-Agency RMBS is set to stage a comeback.

 
Tyler Durden's picture

"We've Run Out Of Buyers" - Half Of Homes In New York Are Now Losing Value





"What happens in any bull asset bubble such as what we've seen is you run out of buyers. It's hard to get deals done if the bottom third can't get a mortgage."

 
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