“The zero interest [rate] policy is an attack on the assets of millions of Germans..."
The SPV Loophole: Draghi Just Unleashed "QE For The Entire World"... And May Have Bailed Out US ShaleSubmitted by Tyler Durden on 04/22/2016 17:38 -0400
"The ECB stands ready to buy bonds from Euro Area issuers even when their parent companies are outside of the bloc. Already we can find a number of US, UK and Swiss headquartered names that issue out of SPVs incorporated in the Euro Area. If this trend to SPV issuance catches on, then the ECB’s policies will likely be very reflationary for all credit markets across the globe, and because of a likely refinancing wave – equity markets too."
Are interest rates low because of the action of central banks or because of unresolved debt deflation?
Fraud Is An Economy-Killer, And Trying To Prevent a Depression While Allowing A Breakdown In the Rule of Law Is Like Pumping Blood Into a Patient Without Suturing His Gaping Wounds
What in the World is Going on with Banks this Week? Emergency meetings, banker summits, crashing European banks.......Submitted by Bruno de Landevoisin on 04/12/2016 17:29 -0400
"We continue to live in a low default world for now though. Even though defaults picked up in 2015, B/BB default rates were still comfortably below their long-term average which they have been for well over a decade now with 2009 being the only exception. Indeed last year’s default rate for global Bs (up from 0.9% to 2.7%) was still lower than all of the first two decades of the modern era of leveraged finance up to 2003. So in spite of all the challenges we face this era has been characterized by astonishingly low default rates. There are clear signs the cycle is turning though, especially in the US."
So Called "Trusted Parties", Bank Collapse, the ECB and Blockchains: Watch as I Call the Next Bear Stearns, Again!Submitted by Reggie Middleton on 04/07/2016 12:20 -0400
I called it once in January 2008 (Bear). I called it 2x in March 2008 (Lehman), and I'm calling it again in 2016. Don't say you didn't know. These proclamations of trust will truly put my analysis - and your capital - to the test.
- Bad News Is Great News: Cautious Yellen drives world stocks near 2016 peaks (Reuters)
- Yellen Spurs Global Stock Rally as Oil Rebounds, Dollar Tumbles (BBG)
- Trump drops pledge to back Republican presidential nominee other than himself (Reuters)
- Second judge says Clinton email setup may have been in 'bad faith' (Reuters)
- Brussels Airport Remains Shut as Police Hunt Third Attacker (BBG)
Spain and Catalonia are locked in a hilarious staring contest over the latter's unpaid bank debt which Barcelona has essentially demanded that Madrid pay. If Spain says no, Catalonia may well just default, a move that would send yields on SPGB's through the roof. Of course if Spain does pay, Madrid is effectively subsidizing Barcelona's independence bid.
"Moody's believes that the Riksbank will find it difficult to achieve its objective of significantly pushing up consumer price inflation in a deflationary global environment, while the sustained and strong growth in mortgage lending and house prices risks leading to an (ultimately unsustainable) asset bubble."
With Fitch now expecting $40 billion in US energy defaults in 2016, the question is who are the most likely candidates. In the following table, we list the distressed bonds which have an interest payment in the next 6 months - one which they very well may not make - and which will most likely be the first to default.
- Pressure Is on Mario Draghi to Show ECB Has Tools to Boost Low Inflation (WSJ)
- Euro dips as ECB sets sights on deeper negative rates (Reuters)
- Ohio's 'dirty little secret': blue-collar Democrats for Trump (Reuters)
- Irish Economy Expanded 7.8% in 2015, Fastest Pace Since 2000 (BBG)
- Too Many Boats for Too Little Cargo Leaves Shippers High and Dry (BBG)
The top economist for Moody’s (one of the largest rating agencies in the world) said yesterday, as he unleahed the latest jobs guess, that there are absolutely zero signs of recession. These sameguys were so drunk on their own Kool-Aid that in October 2007, Moody’s announced that “the economy is not going to slide away into recession.” Everyone assumed that the good times would last forever. This is what virtually assures negative interest rates in America.
- Trump, Clinton poised for big wins on Super Tuesday (Reuters)
- U.S. Index Futures Signal Equities to Rebound After Monthly Drop (BBG)
- Barclays Plummets as Bank Slashes Dividend in Plan to Shrink (BBG)
- Glencore Tumbles to Loss, Promises Accelerated Debt Reduction (WSJ)
- The Angry Americans: Trump, Sanders and the Aftershocks of 2008 (BBG)
Is the blockchain a breakthrough financial technology or the latest focus for Wall Street hype?