• Tim Knight from...
    10/06/2015 - 17:03
    As we head into another earnings season, the bulls better pray to whatever pagan gods they worship that company after company magically defy the downturn that the economy is quite obviously entering.


Tyler Durden's picture

The Phrase That Launches Recessions

“It feels like someone just flipped the switch to ‘off’ without any concrete reasoning,” one of the executives commented.

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Glencore Explains What Would Happen If It Is Downgraded To Junk

"In the event of a downgrade by Standard & Poor’s and/or Moody’s from current ratings to the level(s) immediately below...  there are $4.5 billion of bonds outstanding, where a 125bps margin step-up would apply, in the event that the bonds were rated sub-investment grade by either major ratings agency."

Tyler Durden's picture

More Pain For Biotechs Ahead: Valeant's "Astronomical" Price Increases Take Center Stage; Pfizer Gets Dragged In

Late last week, after looking at Valeant soaring default risk as measured by the price of its blowing out CDS, soaring to over 30% even as its stock prices was surging, we wondered - does someone know something? It appears someone may have known that this weekend, the same Andrew Pollack whose NYT article exposing Turing's 5000% price increase resulted in Hillary Clinton promising to cap specialty biotech prices if elected, has come back for round two and after taking aim at Shkreli and Turing, much to the chagrin of Bill Ackman, Pollack is now taking aim at the biggest culprit: Valeant Pharmaceutcals.

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Why The US Running Out Of Cash In 4 Weeks Is Good News

"This earlier deadline raises the probability that the House will vote to raise the debt limit prior to the time Speaker Boehner steps down on October 30. If so, this would reduce the risk of a disruptive debate on the issue, because Speaker Boehner is more likely than his successor, in our view, to allow a "clean" debt limit increase without the debate over extraneous issues that have delayed enactment until shortly before the deadline in the past."

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US Financials' Default Risk Spikes To 2-Year High

US financials' stocks are tumbling as 'investor' hopes for a rate-hike (and some dream about better earning potential for banks) drag XLF (Financials ETF) back to Oct 2014 lows. However, as have noted before, it is the message of the credit markets that has been correct all along (and stocks continue to catch down) as today's jobs data (and Glencore asset sales) poke Financials credit spreads to their highest since Oct 2013.

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The Dangerous Illusion That Risk Can Be Offloaded Onto Others

Central bank intervention/financial repression provides the illusion thay systemic risk has been disappeared, and this pushes all asset classes into correlation. The idea that some assets will escape the implosion is also illusory; what appeared uncorrelated can suddenly correlate overnight, destroying the entire fantasy that risk can be offloaded onto others.

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"There Are Five Times More Claims On Dollars As Dollars In Existence" - Why This Matters

According to the Fed, there is about $60 trillion of US Dollar credit or claims for US dollars. Also according to the Fed, there are about $12 trillion US dollars.  So, the data show plainly there are five times as many claims for US dollars as US dollars in existence. Does this matter to investors? Well, yes, it matters a lot.

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Wall Street Banks Admit They Rigged CDS Prices Too

As Bloomberg reports, "JPMorgan Chase & Co. is set to pay almost a third of a $1.86 billion settlement to resolve accusations that a dozen big banks conspired to limit competition in the credit-default swaps market, according to people briefed on terms of the deal."

Tyler Durden's picture

Deflation Warning: The Next Wave

The signs of deflation are now flashing all over the globe and the possibility of an associated financial crisis is now dangerously high over the next few months. Our preferred model for how things are going to unfold follows the Ka-Poom! Theory, which states that this epic debt bubble will ultimately burst first by deflation (the "Ka!") before then exploding (the "Poom!") in hyperinflation due to additional massive money printing efforts by frightened global central bankers acting in unison. First an inwards collapse, then an outwards explosion.

Capitalist Exploits's picture

There Will Be Blood - Part I

Hedge fund manager looks under the hood of the current oil price collapse

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The Coming Corporate "Crime Wave"

In a recent appearance before Congress, Deputy Attorney General Sally Quillian Yates declared that the US Department of Justice is going to ratchet up its prosecution of individuals employed in corporations as part of a larger push against “white collar crime.” Within the next year, we should expect to see mid-level business and finance executives doing “perp walks” in front of the news media, as federal prosecutors will charge them with various “economic crimes” in hopes that they will implicate their superiors. All of us by now know the drill and in a time of anemic economic growth complete with business failures, it won’t be hard to find scapegoats.

Tyler Durden's picture

Is This Why Valeant's Default Risk Is Blowing Out Today

While the company's stock price may have rebounded strong today after tumbling by 25% in the past few days, hoping the worst is behind it the company's Credit Default Swaps sing a different tune, and as of moments ago, with the CDS spread blowing out to 440 bps, suggested Valeant default risk is now a whopping 33%.

Reggie Middleton's picture

Every SINGLE Big Wall Street Bank Got Stocks AND Rates Horribly Wrong, Except for... Here's Why It Will Always Happen!

This is a damn shame. You can't be upset if your banker calls you a muppet if you hand him the marrionette strings... The tools to cut the strings are just around the corner. Let's see if regulators do the right thing, or if will they stilfe innovation to protect status quo.

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