Tyler Durden's picture

Shale Company Defaults On $175 MM In Bonds Without Making A Single Interest Payment





Update: And just to prove that people are indeed, idiots, moments ago this hits:

ENERGY XXI GULF COAST, INC. PRICES UPSIZED PRIVATE OFFERING OF $1.45 BILLION OF 11.000% SENIOR SECURED SECOND LIEN NOTES DUE 2020

Back in August 2014, yield-starved bondholders were delighted to give American Eagle Energy $175 million in cash, and why not: the company promised them an 11% annual cash coupon.  Seven months later the company is in default, and the same bondholders are looking at an 80% loss, without receiving even one coupon payment.  Movie Gallery anyone?

 
Tyler Durden's picture

Ridiculous-er And Ridiculous-er





Since the start of February, 48 US macro data items have missed expectations and 8 have beaten. Since then the S&P 500 has risen over 5.5% (and the Nasdaq even more) and 10Y yields are up 50bps. Bloomberg's US Macro Surprise index is now as weak as it was just after Lehman and is falling at the fastest pace since Summer 2012. While everyone is well aware that markets can stay irrational longer than a trader can stay liquid, one has to wonder just how long this farce can continue before even the most effusive talking head has to admit... things ain't great.

 
Tyler Durden's picture

3 Things - New Highs, Dollar Rally, Margin Debt





"What the data doesn't tell us is whether it [the next correction] will be a 'buy the dip' opportunity or something much more significant. Given the length of current economic expansion and cyclical bull market, the fact that the Fed is extracting liquidity from the markets, the trend in margin debt, and the current extension of the markets above their long-term moving averages, there is cause for real concern."

 
Tyler Durden's picture

Goldman Warns Snow May Leads To Lower Jobs Number, But Snowstorms Will Result In Higher Wages





Earlier today a lightbulb went over the head of Goldman Sachs which just had the following epiphany: "if we have blamed the snow for everything so far, shouldn't we also blame it for the most important data point to come - tomorrow's nonfarm payrolls?" And so it did...

 
RANSquawk Video's picture

RANsquawk Preview: Nonfarm Payrolls 6th March 2015





 
Tyler Durden's picture

Thanks For The Corporate Bond Bubble, Fed





Once upon a time businesses borrowed long term money - if they borrowed at all - in order to fund plant, equipment and other long-lived productive assets. Today American businesses are borrowing like never before - to fund financial engineering maneuvers such as stock buybacks, M&A and LBOs, not the acquisition of productive assets that can actually fuel future output and productivity. 

Let’s see. The Eccles Building has grown its balance sheet by 9X since the turn of the century, but real net investment in the business sector has plunged by 33%!

 
Tyler Durden's picture

"Chinese Economic Activity Has Probably Slowed To Less Than 3%"





The real "dynamo" of global growth since the Lehman crisis is about to go dark.

 
Tyler Durden's picture

Chart Of The Day: Recession Dead Ahead?





The past two times US manufacturing orders declined at this rate, the US economy was already in a recession.

 
Tyler Durden's picture

A Day In The Life Of A Falling BRIC





It’s not that long ago, in 2001, that Jim O’Neill, then still with Goldman Sachs, coined the term BRICs, for the fast emerging markets of Brazil, Russia, India and China. O’Neill saw a global power shift from the west to these four nations happening. Fast forward to today, and we see Russia under multiple attacks, including economic ones, from the west, as India just announced the second rate cut this year and China is attempting controlled demolition of the possibly biggest financial bubble in the history of the world. And Brazil? If anything, it’s falling even faster off its pedestal than the other three nations.

 
Tyler Durden's picture

Is JPMorgan Fabricating Its Mutual Fund Returns?





84% of JPMorgan’s 10-year long-term mutual fund AUM is ranked in the top two quartiles, while 70% and 81% of JPM US equity mutual funds have outperformed their benchmark on a 1- and 3-year timeframe, respectively according to an investor presentation. In last year’s presentation, the bank cited Morningstar and Lipper (who know a thing or two about calculating mutual fund returns) as sources. The only problem is that it later turned out that Morningstar and Lipper had no idea how JPM calculated the returns.

 
Tyler Durden's picture

Who Said It? "If You Take Out Saddam, I Guarantee It Will Have Enormous Positive Reverberations"





In 2002, Benjamin Netanyahu already harbored some extremely strong convictions on how to deal with both Iran and Iraq - "If you take out Saddam’s Regime, I guarantee you, that it will have enormous positive reverberations on the region." Fast forward nearly thirteen years, and rather than recognizing that this man’s plan in Iraq only led to death, chaos, and the emergence of ISIS, Congress felt the need to ask him for advice once again. Since as we all know, being wrong in America doesn’t lead to consequences, it leads to promotions.

 
Tyler Durden's picture

EURUSD Hits 1.09 Handle, Lowest Since Sept 2003





Draghi's devalued the Euro over 20% in 6 months...How much further?

 
Tyler Durden's picture

The Global Problem: Monetary Policy Can't Fix An Economy's Structural Problems





What with all the praise being heaped on central banks for "saving" the world from economic doomsday in 2008, it's only natural to ask which structural problems their unprecedented policies solved in the past 6 years. After all, "saving" the world from financial collapse was relatively quick work; so what problems beyond imminent implosion did the central banks policies solve in the past 6 years? Answer: none. zip, zero, nada. The truth is central bank policies of zero-interest rates and free money for financiers have made many structural problems worse.
 
Phoenix Capital Research's picture

The Second Round of the Crisis Will DWARF 2008 In Size and Scope





All of the biggest problems in the financial world revolve around the bond markets today: Greece, Japan, the Fed's interest rate hike, etc.

 
 
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