• Phoenix Capital...
    07/03/2015 - 20:26
    Greece just took a hit… and once again it’s depositors that will take it on the chin. But this process is only just begun. Similar Crises will be spreading throughout the globe in ...

Shadow Banking

Tyler Durden's picture

Gross Says Hold Cash, Prepare For "Nightmare Panic Selling"





That an ETF can satisfy redemption with underlying bonds or shares, only raises the nightmare possibility of a disillusioned and uninformed public throwing in the towel once again after they receive thousands of individual odd lot pieces under such circumstances.

 
Tyler Durden's picture

The Biggest Threat To Chinese Stocks: "Shadow Lending" Crackdown





China's margin loan balance sits at around CNY2.2 trillion, and while that’s certainly impressive, there’s every reason to believe that at least another CNY500 billion in margin lending has been funneled into the Chinese stock market via the country’s shadow banking complex. As regulators tighten the screws on shadow margin lending, are stocks in for a rude awakening?

 
Tyler Durden's picture

China Officially Doubles Down On Multi-Trillion Yuan Debt Swap Program





China has officially doubled the quota on a critical local government bond swap program designed to help provincial authorities crawl out from beneath a debt pile that amounts to some 35% of GDP. Participating banks can pledge the newly issued muni bonds for cash, but with four policy rate cuts already on the books this year, it isn't clear that more liquidity is the answer when it comes to boosting credit creation. 

 
Tyler Durden's picture

"Stratospheric", "Irrational" Chinese Rally "Screams Speculative Bubble" To BNP





"How long the bubble can continue to inflate is the key question – but necessarily unanswerable. Inherently irrational, bubbles usually last longer than expected, [but they] ultimately burst... they expand continuously, then pop."

 
Tyler Durden's picture

IMF Panics - Slashes US Growth Forecasts, Demands Fed Stay On Hold For Another Year





Anxiety over financial stability and shadow banking risks appear to have force Christine Lagarde and her fellow extrapolators to hit the panic button:

IMF CUTS U.S. 2015 GROWTH FORECAST TO 2.5% FROM 3.1%, URGES FED TO DELAY FIRST RATE INCREASE UNTIL 1H 2016

Adding that they viewed the Dollar as "moderately overvalued" and any more appreciation would be "harmful," it seems global disinflationary pressures have left the IMF no choice but to say publicly what everyone has uttered under their breath. Now Yellen is really cornered.. and just exactly how are the talking heads going to spin this as positive?

 
Tyler Durden's picture

The Defaults Continue In China As Duck Producer Sinks





Over the past several months we’ve seen at least three examples of Chinese defaults including Baoding Tianwei Group, a subsidiary of state-owned parent China South Industries. This suggests Beijing will begin to take a more hands-off approach when it comes to propping up borrowers. The latest example is a profitable duck processing company, which FT says has defaulted on its debts after banks refused to roll over its loans.

 
dazzak's picture

From May-hem to Junemaggedon??





This month could be quite a spectacular one.......

 
Tyler Durden's picture

China May Double Down On Debt Swap As ABS Issuance Stumbles





China may raise the quota on a critical debt swap plan by as much as CNY1 trillion, underscoring how important its success is both in terms of kicking the can for the country's heavily-indebted local governments and in terms of jumpstarting the credit creation machine. Meanwhile, an effort to encourage ABS issuance is sputtering amid rising NPLs.

 
Tyler Durden's picture

Margin Debt Breaks Out: Hits New Record 50% Higher Than Last Bubble Peak





For those who still cling on to margin debt as indicative of anything, the latest NYSE report should provide some comfort: finally the long-awaited breakout in participation has arrived, and after stagnating for over a year, investors - mostly retail - are once again scrambling to buy stocks on margin, i.e., using debt, and as of April 30, the amount of margin debt just hit a new all time high of $507 billion, $30 billion more than the month before, and nearly 50% higher than the last bubble peak reached in October 2007.

 
Tyler Durden's picture

China's Third Bond Default Imminent: Coke Supplier To Miss Payment





Coca-Cola supplier Zhuhai Zhongfu Enterprise Co.will reportedly miss a principal payment on Thursday marking the third onshore default in China and underscoring the growing risks the country faces on a corporate debt pile that now totals some $14 trillion.

 
Tyler Durden's picture

Why China Is So Desperate To Blow The Most Epic Stock Bubble





The Shanghai Composite is on the verge of 5,000 and has more than doubled in the past year but this may just be the beginning. The reason: if the Chinese stock bubble bursts, that will be the beginning of the end of the greatest con game in history.

 
Tyler Durden's picture

Time To Get Real About China





The present Chinese leadership appears to be trying to gain (regain?) more - if not full - control over the country’s economic system, while at the same time (re-)boosting the growth it has lost in recent years. President Xi Jinping, prime minister Li Keqiang and all of their subservient leaders – there are 1000?s of those in a 1.4 million citizens country- apparently think this can be done. We truly doubt it. We don’t think that they ever understood what would happen if they opened up the country to a more free-market, capitalist structure. That doing so would automatically reduce their political power, since a free market, in whatever shape and form, does not rhyme with the kind of control which the Communist Party has been used to for decades, and which the current leaders have grown up taking for granted.

 
Tyler Durden's picture

China Officially Launches Critical Local Government Debt Swap — But Is The PBoC Really Just Issuing Treasury Bonds?





China has pitched its local government debt swap program as a way for heavily-indebted provinces to deleverage. Now that the program is officially off the ground, what are the implications for banks and for the PBoC?

 
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