Dallas Fed

What Energy Bankers Are Really Saying: "We Are Looking To Save Ourselves Now"

"Now, while your borrowing base might be upheld, there will be minimum liquidity requirements before capital can be accessed. It is hitting the OFS sector as well. As one banker put it, "we are looking to save ourselves now," with banks selling company debt for as low as $0.10 on the dollar on companies that only had a 50-75% borrow rates to start."

S&P Downgrades Banks With Highest Energy Exposure; Expects "Sharp Increase" In Non-Performing Assets

Moments ago S&P continued its downgrade cycle, this time taking the axe to the regional banks with the highest energy exposure due to "expectations for higher loan losses." Specifically, its lowered its long-term issuer credit ratings on four U.S. regional banks by one notch: BOK Financial Corp., Comerica Inc., Cullen/Frost  Bankers Inc., and Texas Capital Bancshares. The  outlooks on these banks are negative.

"HY Primary Markets Are All But Shut" - What Keeps BofA's Junk Bond Analyst Up At Night

"HY primary markets are all but shut except for very high quality issuers. And if this trend continues for a while (the probability of which in our opinion is very high), we could envision a world where enterprises, big and small, find it harder to acquire financing across all industries, leading to widespread defaults, even outside of commodities."

The Full Summary Of U.S. Banks' Energy And Commodity Exposure

For all those looking for a comprehensive summary of publicly available data of the bank sector's exposure to oil and gas firms, here is Janney's comprehensive summary of US bank energy and commodity exposure, with the caveat that should depressed oil prices persist, all of these indicators will certainly be revised drastically lower as model marks have no choice but to catch up to reality.

Goldman Capitulates: Revises Fed Call, No Longer Expects A March Rate Hike

Another day, another Goldman prediction fiasco, and no, we are not talking about the stop out of the firm's Top Trade for 2016, namely the long USDJPY, short EURUSD (although that should happen any minute) - we are talking about that perpetual permabull, Jan Hatzius, just admitting the economy is in far worse shape than expected (if only by him), and as a result he just "revised" his Fed rate hike call, no longer expecting a March hike, instead now forecasting that the first rate hike will be in June and "and see a total of three rate increases this year."

Bill Gross Trolls "Addled, Impotent" Central Bankers, Asks "How's It Workin' For Ya?"

"Why after several decades of 0% rates has the Japanese economy failed to respond? Why has the U.S. only averaged 2% real growth since the end of the Great Recession? “How’s it workin’ for ya?” – would be a curt, logical summary of the impotency of low interest rates to generate acceptable economic growth worldwide. "

Key Events In The Coming "Payrolls" Week

After last week's relatively quiet, on macro data if not central bank news, week the newsflow picks up with the usual global PMI survey to start, and end the week with the US January payrolls report.

Dallas Fed "Responds" To Zero Hedge FOIA Request

Two weeks ago we, in collaboration with several readers, requested an official response from the Fed through a Freedom Of Information Act submission. Surely if the Fed would go so far as to call us liars, it would have no problem either responding or providing the required information. This is what we got back.

US Economy: On A Knife's Edge

We may not yet have final confirmation that a recession is imminent, but so far nothing suggests that the danger has receded.

Why A Former Fed Official Fears A Global Meltdown

"The Fed’s monetary policy of extraordinarily low interest rates helped create the asset bubbles in stock and commodity prices that are now bursting. In retrospect, the Fed’s rate hike last month will likely be viewed as monetary malpractice. None of this is likely to forestall turmoil in credit markets. Investors are wise to be worried..."