"The problem, as has increasingly been the case, comes when companies fund buybacks by taking on more debt rather than with the cash generated by their operations. That's when repurchases become part of the leveraged low-volatility trade that can unwind disastrously when interest rates rise."
The statement was the Kremlin's first official response following last Friday's indictment of 13 Russian nationals and three Russian organizations by Special Counsel Robert Mueller.
While CFTC speculative equity long positioning had its largest weekly decrease ever, Goldman notes that according to its conversations with clients, most investors continue to be constructive risk.
The Treasury will sell 3-month bills worth $51 billion and 6-month bills for $45 billion, both unprecedented in their size, with a historic total of $179 billion in TSYs for sale today, and $258 billion for the week.
After a week in which stock-trading abruptly algos decided that rising yields are irrelevant at worst, and at best positive for equities, the correlation has again flipped overnight sending Asian shares lower and S&P futures sliding.
In total, over a quarter trillion in new Treasury bills and notes will be sold over the next 4 days: an all time weekly high, just as traders scramble to cover their record shorts.
"We project that federal debt will slightly exceed 100% of GDP and interest expense will rise to around 3.5% of GDP, putting the US in a worse fiscal position than the experience of the 1940s or 1990s."
Banks like to pretend that they're so much more established and secure than the world of cryptocurrencies, but as anybody who pays close attention to the headlines would know... that's just not the case...
After years of forced hibernation, brought about by suspension of traditional trading rules by the central banks, the markets are facing a painful process of re-emancipation.
"The $171 billion in YTD stock buyback announcements is the most ever for this early in the year, and more than all of 2009. It is also more than double the prior 10 year average of $77 billion in YTD buyback announcements."
"Indeed, even if you don't cotton to the seasonally maladjusted monthly data prints, which we definitely do not, it's hard to see the case for goldilocks even on a year over year basis."
"You could say that right now, rather than stocks rising around the world, it is the dollar falling against almost everything" - JPMorgan Asset Management
