PIMCO

PIMCO Fears "The Coming Financial Volatility"

"...central bankers and bond investors have something in common: both worry that the current period of extremely low volatility is neither sustainable nor desirable...For investors today, the lesson is clear: reducing the scale of risk exposure is the right way forward."

Frontrunning: July 13

  • Feuding U.S. Senate Republicans to get revised healthcare bill (Reuters)
  • Draghi May Address Future of ECB Stimulus at Jackson Hole (WSJ)
  • BOJ seeks to tamp down speculation on tapering (Nikkei)
  • Iran’s Stature Grows as Rivals Quarrel (WSJ)
  • China June Trade Data Buoyed by Robust Demand at Home and Abroad (BBG)

Bill Blain: The Trump Fiasco Will Keep Yellen From Doing "Anything Extraordinary" Today

"The Trump Jump now look increasingly unachievable ahead of the next electoral cycle in 2018. No doubt markets will quickly shrug it off. However, the pressure on markets and gridlock on Washington spending plans is probably enough to keep the Fed from doing anything extraordinary – Yellen gives here bi-annual Humphrey Hawkins testimony later today." - Bill Blain

Why The Fed Will Fail Once Again

"The Fed’s bungling should come as no surprise... The Federal Reserve has done almost nothing right for at least the past twenty years, if not longer."

If BlackRock And Pimco Are Right, "Another Fed Shock Looms"

"Once bitten, twice eager sounds like a contradiction but it can often seem like standard operating procedure in global markets - just look at the money piling into bets that the Federal Reserve is going nowhere soon with monetary tightening. It’s as if the February shock - when a deluge of Fedspeak made traders realize their bets against a March hike were wrong - never happened." 

The Reverse Tepper Moment Looms

Seven years ago when Tepper made his bold call, the Fed was trying their best to get stocks higher. At that point, no one believed, and it took guts to ride along in the Fed’s wagon. Today, the Fed is trying to keep financial conditions from becoming too easy, and once again no one believes.

Quiet Start To Quad Witching: Stocks Rebound Around The Globe, BOJ Hits Yen

Today is quad-witching opex Friday, and according to JPM, some $1.3 trillion in S&P future will expire. Traditionally quad days are associated with a rise in volatility and a surge in volumes although in light of recent vol trends and overnight markets, today may be the most boring quad-witching in recent history: global stocks have again rebounded from yesterday's tech-driven losses as European shares rose 0.6%, wiping out the week's losses.