Monetization

Monetization

Goldman Is Turning Increasingly Bearish On Junk Bonds

"Shifting to a more defensive HY rating allocation: Overweight BBs vs. Bs and CCCs n We upgrade BBs to overweight from neutral, downgrade Bs to underweight from overweight, and maintain our underweight recommendation in CCCs."

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Gold is currently up over 15% for the year, silver by nearly 12%. Both offer financial safe havens during times of war. All parties involved in the current geopolitical fracas are big holders of gold. Two of them, Russia and China are enabling the trade of the precious metal for key commodities.

Facebook Promises To Censor All Material That Makes Zuckerberg Sad

Earlier this morning, Facebook Vice President of Media Partnerships shared a new blog post on the company's website detailing precisely how they intend to censor content with which they happen to disagree.  Apparently all content providers who share "clickbait or sensationalism, or post misinformation and false news" are doomed...

What Share Of Bond Markets Do Central Banks Own: Deutsche Bank Answers

In light of the upcoming ECB meeting, where Mario Draghi will be asked how he plans to reconcile extending QE with declining amounts of QE-eligible bonds, Deutsche Bank has released a useful analysis breaking down what share of bond markets the biggest central banks currently own.

Are Central Banks Nationalizing The Economy?

"Monetization is a perfect system to nationalize the economy passing all the risks of excess spending and imbalances to taxpayers. And it always ends badly... To believe that this time will be different and governments will spend all that massive 'very expensive free money' wisely is simply delusional."

Draghi: Trillions In QE Have Made Economies "More Resilient"

ECB president Mario Draghi said unconventional policies like quantitative easing have been a success both sides of the Atlantic, and the injection of over $10 trillion in liquidity over the past decade has made eEconomies around the world "more resilient."

As D-Day Looms, The Maturity Of ECB's Bund Purchases Drops Again

In its latest monthly purchase, the ECB revealed that the estimated weighted average maturity of purchases of German bonds under the ECB’s PSPP in July declined once again to around 5.18 years vs 5.33 years in June, although it was modeslty higher compared to the record lows of 3.99 years in May and 4.7 years in April and March.

When Will The ECB Run Out Of German Bunds To Buy: Here Is The Math

If the ECB were to reduce the pace of QE to €40bn per month starting in January, it should not run out of German government bonds to purchase until early 2019. On the other hand, if it keeps the current pace of QE, it will run out of paper in late 2018, and even with a downward revised €40bn monthly total, the ECB will have almost no German bonds left to buy in 2019.

Stockman Warns Of The Imperial City's Fiscal Waterloo

"The stand by Senators Lee and Moran was much bigger than putting the latest iteration of McConnell-Care out of its misery. The move rang the bell loud and clear that the Imperial City has become fiscally ungovernable. That means there is a chamber of horrors coming. With it, an endless political and fiscal crisis that will dominate Washington for years to come. Its cause is deep and structural."