HNA is marketing commercial properties in New York, Chicago, San Francisco and Minneapolis valued at a total of $4 billion as the indebted Chinese conglomerate seeks to stave off a liquidity crunch.
With the great equity volquake come and - for now - gone, what one indicator should traders watch to decide if a new market shock is imminent? According to Bank of America, here is the answer...
U.S. stock index futures turn negative in an illiquid, volatile session as investor sentiment has yet to stabilize amid doubts whether the U.S. equity selloff is over as yields remain just south of the critical 2.85% level.
With the Bank of England expected to keep monetary policy instruments unchanged - and the vote split expected to be 9-0 - markets are instead looking for any hints that a rate hike could come as early as May.
"Countering Russia has become a lucrative industry in Washington. In recent years, the think tank business has exploded. But who funds these organizations, who works for them and what are the real agendas at play?"
"If these equity ETF flows start reversing, the resultant rise in bond-equity correlation would likely induce de-risking by risk parity funds and balanced mutual funds, magnifying the eventual equity market sell-off."
"Equity investors have had an amazing time over the past four-five years. But now, the surge in bond yields is reaching the pain threshold for equities."
While many suggest this shock was driven by concerns of inflation leading to faster than expected policy normalization (the right thing to be concerned about in our view), rates have been incredibly stable compared to past bond-led shocks such as the taper tantrum.
"our downgrade [from A to A-] reflects our view that regulatory risk for Wells is more severe than we previously expected and the process for improving its governance and operational risk policies may take longer than we previously expected."
"We look forward to having him before the Committee once we can assure that he will be able to thoroughly answer all our questions without concerns regarding the scope of executive privilege."
