Commercial Paper

A Brief History Of Tail Risk: From LTCM, ABX, CDS, To VIX

"While I think valuations may be stretched, my bigger concern is that the real risk lies in market structure – more specifically to volatility and correlation strategies that quickly propagate through the financial markets with the aid of algorithmic trading..."

What Do Rate Hikes Have To Do With Crashing Libor-OIS Spreads?

Since peaking last September at 44bps, 3m Libor-OIS has seemingly collapsed each time the market got excited about higher rates. In fact, whenever the fed funds implied probability of a rate hike jumped just prior to an upcoming FOMC meeting, a drastic narrowing of Libor-OIS ensued.  What rate hikes have to do with Libor-OIS spreads

The Full Breakdown Of How Trump Tax Policies Will Impact S&P Earnings

Some form of corporate tax reform under Trump seems likely likely as it is a stated priority of President Trump and has widespread Congressional support. In the following analysis, BofA analyzes the four components that could have big equity implications on S&P500 earnings over the coming years.

Italy's Insolvent Monte Paschi To Issue €15 Billion In Debt

Italy's Banca Monte dei Paschi di Siena (BMPS.MI), which is being bailed out by the state, plans to issue 15 billion euros ($15.8 billion) of debt next year to restore liquidity and boost investor confidence, several newspapers said on Friday.

The Fallacy Of Central Planning (Exposed By South Park's Underpants Gnomes)

In the 1980s, the Fed decided that economists had learned sufficiently from the grave, global mistakes of the Great Inflation such that they would compensate for the evolution of money by controlling just a single interest rate. It was, essentially, an underpants gnome schematic: "1. Target federal funds rate. 2. .... 3. Control Economy."

"The Outcome Is Undeniable" - Global Debt Investors Face Reality Of A World Devoid Of Options

A recent, reluctant re-viewing of the film, 'Silence of the Lambs', fed fresh food for thought. The image of captives rejecting their freedom brought to mind another flock of corralled and stunned lambs - bond market investors. They too have been given the opportunity to escape their fate. But so many choose instead to stay. Such is the reality of a world devoid of options, with time ticking ruthlessly by.