Fitch

Tyler Durden's picture

Meet China's Latest $1.8 Trillion "Problem"





China's mid-tier banks are piling up exposure to the riskiest subset of borrowers at a time when economic fundamentals are deteriorating on a near daily basis. Meanwhile, this exposure is being carried on a line item that allows the banks to avoid provisioning for the losses that will almost certainly materialize in the not-so-distant future. At one bank, this one line item is larger than the entire Philippine banking system.

 
Tyler Durden's picture

The Islamization Of America In 2015, Part 2





More than half (51%) of Muslims in America believe they should "have the choice of being governed according to Sharia." Only 39% of those polled said that Muslims in the U.S. should be subject to American courts. Nearly a quarter believed that, "It is legitimate to use violence to punish those who give offense to Islam by, for example, portraying the prophet Mohammed."

 
Tyler Durden's picture

Frontrunning: January 26





  • China shares end at 14-month lows after late selling frenzy (Reuters)
  • China Dec gold imports through Hong Kong highest since 2013 (Reuters)
  • China Contagion Fades as European Stocks Pare Drop, Oil Rises (BBG)
  • Apple set for slowest ever iPhone sales growth (Reuters)
  • Saudis, Russia Seen by Iraq as More Flexible on Oil-Output Cuts (BBG)
  • China Probes NEV sector for subsidy fraud (China Daily)
 
EconMatters's picture

The Big Short of 'Mother Frackers'





While energy E&P companies were dropping like flies in 2015, credit rating agencies and banks have remained awfully quiet.... 

 
Tyler Durden's picture

Bank (Un)earnings: Why FICC Is Shrinking And Will Continue To





We are told bank earnings and revenue are under pressure from a slew of “tough markets” but what makes those markets so untenable in the first place?

 
Tyler Durden's picture

S&P's Downgrade (By A German Analyst) Is A "Politically-Motivated" Decision Aimed At Polish Authorities





The Standard and Poor’s rating agency, notorious for its controversial assessments, has this time bashed Poland in the wake of the anti-Polish frenzy whipped up by the European media. To be more precise, Poland was assailed by a German S&P analyst who lowered Poland’s rating from A- to BBB+, despite the economic data that by no means warrant such an evaluation.

 
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

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

The Cost Of China's "Neutron Bomb" Exploding: $7.7 Trillion And Higher





... if analysts, like those at Autonomous are to be believed, China’s banks could require up to $7.7tn of new capital and funding over the next three years. State bailouts could send the government debt to GDP ratio spiralling from 22 per cent to 122 per cent. That kind of shock would be a challenge for any country, even one of China’s vast might.

 
Tyler Durden's picture

This Is The $3.5 Trillion "Neutron Bomb" That Keeps Kyle Bass Up At Night





"... what we are going to see next is a credit cycle, and in a credit cycle you see some losses, but if China's banking system loses 10%, you are going to see them lose $3.5 trillion."

 
Tyler Durden's picture

Nomi Prins' Financial Road Map For 2016: "The Potential For Chaotic Fluctuations Is Greater Than Ever"





We are currently in a transitional phase of geo-political-monetary power struggles, capital flow decisions, and fundamental economic choices. This remains a period of artisanal (central bank fabricated) money, high volatility, low growth, excessive wealth inequality, extreme speculation, and policies that preserve the appearance of big bank liquidity and concentration at the expense of long-term stability. The potential for chaotic fluctuations in any element of the capital markets is greater than ever. The butterfly effect - the flutter of a wing in one part of the planet altering the course of seemingly unrelated events in another part - is on center stage.

 
Tyler Durden's picture

The Great Disconnect Is Palpable





Taken together with the rather steep drop in US industrial production, the risks of a full-blown and perhaps severe recession have undoubtedly grown. Unlike what the FOMC is trying to project via the federal funds rate, a rate that isn’t being fully complemented, either, at this point, visible economic risk is not just rising it is exploding.

 
Tyler Durden's picture

China Now Has So Much Bad Debt, It's Selling Soured Loans On Alibaba





If you had any doubt about whether the doomsayers were telling the truth about soaring NPLs in China, look no further than Huarong Asset Management Co, which is set to auction some $8 billion in sour loans on Taobao. As Barclays notes, "AMCs in general will more frequently resort to a “wholesaling model” for distressed asset disposal, given the increasing NPL supply amid the current credit cycle."

 
Tyler Durden's picture

Despite Lifting Of Export Ban, Moody's "Bombshell" Sparks Panic In Energy Credit Markets





The Senate and House passed the spending bill this week, which the President signed into law on the same day. Embedded in the law is a provision to lift the 40-year old crude export ban. The lifting of the crude export ban is a historic milestone, but seemingly less relevant for US E&Ps, Midstream and Oilfield Services as compared to a year and a half ago when WTI-Brent spreads were close to $9.00/bbl vs. the current spread of $0.80/bbl. Nevertheless, there is still a negative long-term impact on refiners should spreads re-widen.

 
Syndicate content
Do NOT follow this link or you will be banned from the site!