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What happens next?
As CCCs hit a new cycle record high spread...
Charts: Bloomberg
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SJB
Bank Holiday Monday?
Can't it wait until Christmas?
"Up, up and....hey..where you guys goin'?
With the Draghi juice taken off the table, we will soon be dining on bull flesh.
more likely bull patties, fresh from Mr. Yellen.
Maybe with a hint queef. Ummmm
Fed Fluffer Hilsenrath will work on the Bond mkt next.
And to think, the carnage in the energy sector has only just started to manifest in the junk bond market.
Oil is only the most obvious turd floating. All those "investment grade" bonds are as bad, or worse, but they've been polished up and pushed out the door by the mega-banks as the one true investment......
Copper has been circling the drain, but - not a big deal.
fidelity fund manager yesterday on CNBC was saying yesterday that high yield defaults a sign the business cycle is maturing. not sure if he understands that 30-35% of the high yield market was in the energy space. oil down around $40.00 is simply unsustainable for 1. the oil companies themselves 2. those who bought the debt (banks, clients).
is cramer still pitching MLPs on CNBC? great stuff there. no worries, just buy an MLP yielding 8-9%. don't think about/worry the fact the stock prices are getting cut in 1/2 year-to-date. oh, and as those revenues contract due to lack of demand + the price of oil NOT lifting = dividend evaporation.
They just see the yield. Most of the investors can't find the time to understand how they work but will when they implode. Nothing spurs an education in an investment like losing a shitload of money.
Da Boys grinding away really trying everything they can to A) keep crude above $40, and B) trap more longs above 2070ish. Day's range for a while was 2047/2070 and sure enough they popped it above and are now trying to stay there.
My approach heading in was to pick on the RS weakness of Russy via TZA. Russy been lagging and caught below a very key trendline and didn't bounce nearly as strongly as the BKX and Spider. Dove in TZA and dumped after Spider dropped from 2069 to 2063. Cocksuckers will do anything possible to close this piece of shit above 2070. Still seeing relative weakness lead by Russy, crude, and junk/debt. Russy needs a thrust above 1200 and 1205 for me to believe it is a legit "risk on".
dude .. all your knowledge and technicals just got Drahied .. what a farce of a market .. I must me insane to even try to short this market ..
There is really absolutely no reason why the Dow should be up 250 points. This is ridiculous. However, today's manic ramp for the first time seems relatively logic to me:
After yet again precisely engineered "better than expected" jobs numbers, the FED is buying S&P futures like crazy, while keeping the illusion how the hike is on the table. Now they will really hike. Just believe it. And it is BULLISH!
They are trying to "convince" enough braindead "investors" that a rate hike is something good.
Good luck with that.
Permanent high plateau. Dow target 17760 nearly hit today.
Permanent High Plateau is nice but not enough...needs to be always getting higher....which the economy can't support.
Someday (in a galaxy far far away) the economy will again make a difference. For now it is all just Fed numbers.
Y'all need to diversify yo bonds, nigga.
All of this seems eerily familiar. Didnt appreciate how much junk was in energy. Oil pricing remains a black box to me but its a good bet prices will have to spike given all the .. Fuckery afoot. Race out of emerging markets, yeah?
And i bet that once again, unadulterated wam will be highly predictive as to who shits the bed earliest and most copiously.
Remember that schwab high yield fund et al? Amaaaaazing how many people didnt pick up on the whole using interest rate reset dates 'as' the maturity dates. Tranching doesnt mean dick when cap return is 10 times longer than claimed.
Would like to see a chart of high-yield bonds with the energy sector omitted to know how much of this is just a consequence of low oil prices vs. a true repricing of debt across all high-yield.