Shadow Banking

China's Minsky Moment Is Imminent

Everything you wanted to know about the looming bursting of the world's biggest credit bubble, but were afraid to ask...

Bill Blain: "The US Is Now Looking Like A Deflated Drunken Uncle"

"With the US now looking like a deflated drunken uncle, the focus is firmly fixed on what Mario Draghi says on Thursday at the ECB meeting. Does he confirm Euro strength with a bullish assessment of Eurozone recovery, and hint at an early taper and normalisation… Or does he step back, go soft and mushy, and make some “kick that can down that strasse” comments?"

When A "Black Swan" Will No Longer Do: China Warns Beware The "Gray Rhino"

In surprisingly stark commentary, China issued a warning that the economy finds itself in a backdrop of growing enterprise debt, an overheating real estate market, and overcapacity in such sectors as low-end manufacturing, and cautioned investors that a "gray rhino" may be coming.

China's "Ghost Collateral" Arrives In Canada, "Heralding A Crisis"

"We all know that the ghost collateral is a huge deal, and we all know that the shadow banking and other Chinese influence in Vancouver is profound. The issue is that the ghost collateral ends up re-hypothecated and laundered. So by the time it shows up in Vancouver, it will likely just look like a rich Chinese cash buyer with a suitcase of money.“

A New Chinese Threat Emerges: Net Bond Issuance Crashes Most On Record

China just suffered a record collapse in net corporate bond financing, the latest and far more "tangible" threat to China's debt-fuelled economy. In May a quarter trillion yuan in corporate bonds matured, or were repaid, or defaulted, resulting in the biggest corporate debt drain in history.