Barclays

Just in time for both total auto loans and total student debt outstanding to top the $1 trillion mark, we get a match made in FICO hell as the subprime lending unit of AIG Springleaf, has purchased OneMain, another subprime lender that’s been relegated to Citi’s Citi Holdings trash bin for years. The deal creates a subprime lending powerhouse with some $14 billion in possibly-not-toxic receivables.

Just a day after Blackrock saw its biggest Bond ETF outflows in history ($525.8 million pulled on Monday), Actavis sold $21 billion of almost-junk 'BBB-' rated debt (at a minsicule yield of only 3.5%) in the 2nd largest bond issuance ever (2nd only to Verizon's massive $49 billion deal in 2013). The issue was oversubscribed 4.5x (around $90bn in the order book) as a ten-part offering varying from 18-month floaters to 30Y fixeds all went off below guidance. With Treasury liquidty disappearing fast, one wonders just how much rate-locking on this massive deal was responsible for a net short overhang on the Treasury complex the last few days...

- “Bail-in is now the rule” - EU Finance Minister Noonan  - Austrian bondholders today … international depositors tomorrow ... We urge readers to diversify deposit holdings and acquire allocated gold to protect their wealth during the next phase of the banking crisis.

• 3 days after Zero Hedge, here's Bloomberg: Company Cash Bathes Stocks as Monthly Buybacks Set Record (BBG)
• Israel's Netanyahu to address Congress in speech that has strained ties with Obama (Reuters), Risks Diplomatic, Political Pain If Speech Falls Flat (BBG)
• Before Key Speech, Netanyahu Hails U.S. Ties (WSJ)
• $1.92 bilion FX rigging charge: Barclays Posts Loss as Foreign-Exchange Provisions Rise (WSJ)
• Barclays Awards Jenkins First Bonus as CEO, Cuts Pay Pool (BBG)
• Exxon’s Russia Exposure Surges as Long View Outweighs Sanctions (BBG)
• Obama says Iran must halt key nuclear work for at least a decade (Reuters)
• Yellen Turning from Friend to Foe for Dollar Bulls (BBG)

Crude oil prices are once again following the path of least deja vu resistance this morning. Having spiked into NYMEX close on Friday (exactly as they did following the rig count data the previous week), WTI is back to a $48 handle this morning following news that Saudi Arabia has increased production to its higest level since 2013. Iraq (another OPEC nation) stirred the pot further by forecasting increased supplies in the next month. This comes as US production hits record highs and vital Oklahoma storage tanks will fill up even sooner than expected, driving the "JK" spread above $2.50 (April delivery drastically cheaper than May). As on analysts noted, as "Cushing continues to fill massively, we could see a '3' handle on WTI."

• Hilsenrath: Fed Ushering in New Era of Uncertainty on Rates (WSJ)
• Is Supreme Court's chief justice ready to take down ObamaCare? (The Hill)
• Netanyahu arrives in U.S., signs of easing of tensions over Iran speech (Reuters)
• Nemtsov Murder Fuels Suspicion, Fails to Spur Russia Selloff (BBG)
• ECB uncomfortable with leading role in Greek funding drama (Reuters)
• Video shows Los Angeles police shooting homeless man dead (Reuters)
• Iraq Military Begins Campaign to Reclaim Tikrit (WSJ)
• How Billionaires in London Use Secret Luxury Homes to Hide Assets (BBG)

Despite a 7% rise in actual tourist arrivals to Macau from China during this Lunar New Year's holiday, 'The Year of The Goat' is off to an extremely inauspicious start. As Bloomberg reports, even with expectations of a 40% drop, Macau casino revenues is now projected to crash a stunning 53.5% from last year. While a decline in VIP gambling was expected (due to, among other things, Xi's extreme crackdown on corruption - and the Macau money laundering schemes), JPMorgan notes, this was still "shockingly bad," as "even premium mass demand remained very muted," and marks the ninth straight month of decline, the longest losing streak since monthly records started in 2005.

Nothing says limited government and separation of powers like a bureaucracy unaccountable to the voice of the people! Then again, Yellen doesn’t care much for democratic oversight. She’s a caricature of Randian libertarianism: someone who wants to do whatever, whenever, without rulers. The problem is Yellen isn’t operating a private railroad company. She’s the figurehead for a government institution created by Congress. If democracy means anything, it’s that voters have some measure of control over political bureaucracies.

• Central Banks With Negative Rates Spur Question of How Low to Go (BBG)
• DHS to keep running: Congress edges toward domestic security funding patch (Reuters)
• Setbacks for Tsipras Stir Discord in Greek Ruling Party (BBG)
• Greece’s Challenge: Appeasing Its Creditors and Its Population (WSJ)
• Buffett, a cheerleader for America, takes his checkbook abroad (Reuters)
• Oil’s Big Swings Are the New Normal: Market has rarely been more volatile (WSJ)
• Ukraine Left Behind as Russian Stock Gains Are Unmatched (BBG)
• Brent rises to $61, set for first monthly gain since July (Reuters)

If there isone thing that is virtually certain about today's trading (aside from the post Rig Count surge in oil because if there is one thing algos are, it is predictable) is that despite S&P futures being a touch red right now, everything will be forgotten in a few minutes and yet another uSDJPY momentum ignition ramp will proceed, which will push the S&P forward multiple to 18.0x on two things i) it's Friday, and an implicit rule of thumb of central planning is the market can't close in confidenece-sapping red territory ahead of spending heavy weekends and ii) the Nasdaq will finally recapture 5000 following a final push from Apple's bondholders whose recent use of stock buyback proceeds will be converted into recorder highs for the stock, and thus the Nasdaq's crossing into 5,000 territory because in the New Normal, the more expensive something is, the more people, or rather algos, want to buy it.

• Goldman Employees Reaped $2 Billion From 2008 Options Last Year (BBG)
• On Bush turf, Obama blames immigration woes on Republicans (Reuters)
• Tougher Internet rules to hit cable, telecoms companies (Reuters)
• Russia's Gazprom says can exempt rebel-held areas from Ukraine gas contract (Reuters)
• Allianz Says Pimco Seeing ‘Substantially’ Lower Outflows (BBG)
• Merkel Faces Stepped-Up Dissent on Greek Bailout in Party (BBG)
• SEC Probes Companies’ Treatment of Whistleblowers (WSJ)
• 2-Year Trek From Turf to Table Delays Cheaper U.S. Beef (BBG)
• Turkish jets violate Greek air space (Kathimerini)

Janet Yellen is very alarmed that some members of Congress want to conduct a comprehensive audit of the Federal Reserve for the first time since it was created. During testimony this week, she made “central bank independence” sound like it was the holy grail. Even though every other government function is debated politically in this country, Janet Yellen insists that what the Federal Reserve does is “too important” to be influenced by the American people. Does any other government agency ever dare to make that claim? If the Fed is doing everything correctly, why should Yellen be alarmed? What does she have to hide?

As a frequent contributor to Bloomberg, I would welcome the opportunity to debate this with Barry.
What say you @ritholtz ?  : )

• Invade Syria already, we know you will: Islamic State in Syria abducts at least 150 Christians (Reuters)
• Greece Struggles to Get Citizens to Pay Their Taxes (WSJ)
• Doubts Shadow Deal to Extend Greek Bailout (WSJ)
• In surprise result, Chicago's Mayor Emanuel faces election run-off (Reuters)
• Obama vetoes Keystone pipeline bill (Reuters)
• Another sign of the top: Cushman & Wakefield Going Up for Sale (WSJ)
• Lure of Wall Street Cash Said to Skew Credit Ratings (BBG) ... and threat of DOJ lawsuits also
• Oil rises to $59 as Saudis say demand growing (Reuters)

• Yellen faces Senate grilling on Fed rate policy, transparency (Reuters)
• Big Banks Face Scrutiny Over Pricing of Metals (WSJ)
• Greece makes more concessions to euro zone, Germany sets vote (Reuters)
• Time for another executive order: Longer Lives Hit Companies With Pension Plans Hard (WSJ)
• The Syria invasion "false flag" approaches: Islamic State in Syria abducts at least 90 from Christian villages (Reuters)
• Why Lenders Love the $2.5 Million Home Loan (BBG)
• Reuters journalist Maria Golovnina dies in Pakistan aged 34 (Reuters)
• Qatar’s Ties to Militants Strain Alliance (WSJ)