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Tyler Durden's picture

China Stocks, Credit Risk Worsen Despite "Short-Squeezed" Yuan Strength





On the heels of new reserve ratio regulations and the biggest strengthening in the Yuan fix in 4 weeks, offshore Yuan has strengthened notably (despite Chinese default/devaluation risk surging in the CDS markets). Chinese stocks are weaker in the early going but corporate bond yields continue to slide to new record lows as the "last bubble standing" stands ignorant of the risks around it.

 
Tyler Durden's picture

Wells Fargo Is Bad, But Citi Is Worse





"While we are taking what we believe to be the appropriate reserves for that, I'm just not prepared to give you a specific number right now as far as the amount of reserves that we have on that particular book of business."

 
Tyler Durden's picture

Wells Fargo's Problem Emerges: $17 Billion In Junk Energy Exposure





<Q - Mike L. Mayo>: What percent of the $17 billion is not investment grade?
<A - John R. Shrewsberry>: I would say most of it. Most of it.
<Q - Mike L. Mayo>: So most of the $17 billion is non-investment grade.
<A - John R. Shrewsberry>: Correct.

 
Tyler Durden's picture

What Just Happened With OIL?





What's wrong with this picture?

 
Tyler Durden's picture

Exclusive: Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears





The Dallas Fed met with the banks a week ago and effectively suspended mark-to-market on energy debts and as a result no impairments are being written down. Furthermore, as we reported earlier this week when first nothing the rumor, the Fed indicated "under the table" that banks were to work with the energy companies on delivering without a markdown on worry that a backstop, or bail-in, was needed after reviewing loan losses would exceed the current tier 1 capital tranches.

 
Tyler Durden's picture

"How The Investment Grade Dominos Will Fall" - UBS Explains





As a potential worst case scenario, we use the simple sum of probabilities from 2001- 2002 and the current debt stock as an example of what could happen during a protracted downturn. If this comes to fruition, we estimate fallen angel volumes over 2 years could spike to $413bn, with $117bn of 10+ fallen angel paper (again crashing into a 10+ HY market that is only $48bn in size). This is an ugly spectre that the high-grade markets would need to face in future years.

 
Tyler Durden's picture

GM/Ford Credit Risk Surges To 2 Year Highs As Fitch Raises Auto Sector Concerns





With the feds probing Deutsche Bank's exaggerating Auto ABS demand, car dealerships suing automakers for being forced to channel-stuff, direct evidence of massive channel-stuffing with near-record inventories-to-sales, and sales now beginning to tumble after last month's weak credit growth, it is perhaps no wonder that Fitch has raised the warning flag about automotive vehicle and parts makers...

 
Tyler Durden's picture

The Game Of Chicken Between The Fed & The PBOC Escalates





There’s more than a whiff of 2008 in the air. The sources of systemic financial sector risk are different this time (they always are), but China and the global industrial/commodity complex are even larger tectonic plates than the US housing market, and their shifts are no less destructive. There’s also more than a whiff of 1938 in the air, as we have a Fed that is apparently hell-bent on raising rates even as a Category 5 deflationary hurricane heads our way, even as the yield curve continues to flatten.

 
Tyler Durden's picture

No, Goldman Is Not Calling For An "Oil Bull Market": Here Is What It Really Said And Why It's Bad News For Banks





There has been some confusion overnight whether Goldman, in a note released overnight, is calling for a new "bull market" in oil and commodities in general. Goldman did not call for a bull market. This is what it did say, and it is not good news for US banks.

 
Tyler Durden's picture

Saudi Arabia: A Weak Kingdom On Its Knees?





The great Kingdom of Saudi Arabia - the long-time dictator of crude oil prices for the world - is struggling on all fronts. The Saudis are in a state of panic all around - from its OPEC status and dwindling reserves to its proxy wars that absolutely cannot turn into full-fledged wars and its growing friendlessness. At the end of the day, Saudi Arabia has overextended itself, and overestimated its prowess and it does not have the clout that it once had to be able to do this effectively.

 
Tyler Durden's picture

Last Bubble Standing





EM debt bubble... emaciated, FX Carry... crucified, Crude...crushed,  High yield bonds... burst, Chinese equities... blown, Trannies... trounced, Small Caps... slammed, Biotechs... busted, and FANGs finally FUBAR! But there is one big (very big) bubble left in the world that no one is talking about, and a rather large liquidity-busting pin beckons...

 
Tyler Durden's picture

Icahn's Freeport McMoran Is Not Buying The Bounce





With Freeport McMoran at the top of the list of entities due to be downgraded to junk (in fact trading in credit markets with a 79% chance of default), it is perhaps not entirely surprising that yesterday's dead-cat-bounce is fading fast this morning as Carl Icahn's big bet turns sour-er.

 
Phoenix Capital Research's picture

The Bursting of the Bond Bubble Has Begun





Globally the bond bubble has grown by more than $20 trillion since 2008. Today it is north of $100 trillion, with an additional $555+ trillion in derivatives trading based on it.

 
 
Tyler Durden's picture

Guest Post: 2016 - Year Of The 'Epocalypse'





As the towering forces that are prevailing against failing global economic architecture and the pit of debt beneath that structure, as laid out below, it is clear that the 'Epocalypse' - encompassing the roots "economic, epoch, collapse" and "apocalypse" - is here, and it is everywhere. The Great Collapse has already begun. What follows are the megatrends that will increasingly gang up in the first part of 2016 to stomp the deeply flawed global economy down into its own hole of debt.

 
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