CLO Funds That Hold Leveraged Loans Could See Another Sharp 4Q Sell-Off

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via MarketWatch: CLO funds, the biggest buyers of U.S. leveraged loans, could see another sharp, fourth-quarter sell-off as investors look to avoid the sting of weak economic data and signs of financial stress at debt-laden companies, Bank of America Merrill Lynch analysts warned in a recent client note. Problems that have plagued the nearly $600 … Read more

Public Pension Funds Abandon 8% Dreams

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via pionline: When it comes to public pension plans’ assumed rates of return, what is rare today was quite common less than 10 years ago. Only three of 129 public plans tracked by the National Association of State Retirement Administrators have assumed rates of return at 8%. In 2010, by contrast, 59 plans had assumed … Read more

The narrative on CNBC today will be manufacturing is only 11% of GDP. Then they won’t tell you consumer spending on services, which is 45% of GDP, has seen its growth rate fall to a 5 and a half year low

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https://twitter.com/GreekFire23/status/1179035532577263617 https://twitter.com/NorthmanTrader/status/1179045737373544449 DEUTSCHE: “For the past year, we have seen a steady decline in US consumers’ interest in buying large household goods, i.e. washers, dryers, computers, TVs, furniture etc. This sentiment indicator has historically been a very good leading indicator of the business cycle” (Slok) pic.twitter.com/NSsk7xu7hp — Carl Quintanilla (@carlquintanilla) October 1, 2019

Fidelity’s 0% expense ratio index funds are likely to trail the index by about 0.15% per year (An original analysis)

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by jerschneid Fidelity Released Zero Fee Index Funds The exploding popularity of low fee index index funds in recent years has been putting pressure on brokerages to push their index fund expense ratios even lower. About a year ago, Fidelity ramped up that battle when they released four 0% expense ratio index funds, including FZROX a zero … Read more

We just set a new record again. Today 19 economies have their 30-year yields below the Fed funds rate.

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We just set a new record again.Italy now joined the pack. Today 19 economies have their 30-year yields below the Fed funds rate. Previous extremes proved to be a bad omen for the global economy. The Fed is cutting rates, and this count keeps rising. pic.twitter.com/C5kFHeux9H — Otavio (Tavi) Costa (@TaviCosta) September 29, 2019

Charles Schwab is eliminating commissions for online trading in US stocks and ETFs

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https://www.cnbc.com/2019/10/01/charles-schwab-is-eliminating-online-commissions-for-trading-in-us-stocks-and-etfs.html “Charles Scwab said on Tuesday that it is ending commissions for online trading in U.S. stocks, exchange-traded funds and options. The changes will apply to securities on Canadian exchanges as well.”     Wow that’s quite a game changer between SCHW and IB, the other brokerages are in big, deep shit if they can’t … Read more

Recession Imminent

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by chaney3 Introducing the newest brand of full-blown autism™, I present to you the California / Europe ultimate bear portfolio! Based on a special blend of my extra chromosomes and a spicy mix of hate for California, this portfolio will blow average market returns out of the water based on the following assumptions (Cetaris Paribus): … Read more

Recent repo spikes are warning of another Crisis, but not a guarantee of one.

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Recent repo spikesare warning of another Crisis, but not aguarantee of one. Marketsare becoming illiquid.Despite FOMC rate cut inSeptember, policy needsto focus far more onbalance sheet expansion,i.e. QE. This will pushbond term premia higher.act@liquidity.com for report pic.twitter.com/xVAgQyT35r — CrossBorder Capital/ GLIndexes (@crossbordercap) September 22, 2019 EM liquidity slumps again in August despite strong rebound in … Read more

Is this the worst IPO screw-up in history? Could WeWork bonds lead the stock market?

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Can anyone recall the last time (if ever) that a hot IPO candidate resulted in the end removal if its founder/CEO and it bonds getting smashed. Is this the worst IPO screw-up in history? WEWORK BONDS DROP TO RECORD LOW, YIELD CLIMBS ABOVE 11% pic.twitter.com/PO7metjEz1 — Jim Bianco (@biancoresearch) September 30, 2019 Could WeWork bonds … Read more

Terrible Combination Of Weak Consumption & Business Investment Growth

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via UPFINA Friday was a terrible day for economic data as we will review in this article. The disappointing August real consumption and core capital goods orders growth caused many Q3 GDP growth estimates to plummet. Oxford Economics’ estimate fell from 1.8% to 1.3%, Morgan Stanley’s estimate fell from 2.1% to 1.5%, and Macro Economic Advisors’ estimate fell … Read more

Disinflationary Pressure Is Building… Markets Need “Rate Cuts That Are Aggressive Enough To Re-Steepen The Curve”.

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Disinflationary Pressure Is Building https://t.co/UGOiE1WhKj pic.twitter.com/uYd1uiz0UG — Eric Basmajian (@EPBResearch) September 30, 2019 While the Fed’s repo operations appear to have smoothed short term turbulence, Zoltan Pozsar, who wrote of potential problems back in August, has warned that more than technical actions are needed. Markets need “rate cuts that are aggressive enough to re-steepen the … Read more

This new AI Language Model automatically embellishes anything you write

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https://talktotransformer.com/ Better Language Models and Their Implications We’ve trained a large-scale unsupervised language model which generates coherent paragraphs of text, achieves state-of-the-art performance on many language modeling benchmarks, and performs rudimentary reading comprehension, machine translation, question answering, and summarization—all without task-specific training.     h/t EmilioLizardo

Haiti is overthrowing their government and MSM is keeping it hush hush

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by CaptKirkB The people of Haiti are overthrowing their American backed regime due to misuse of funds from Venezuela and we aren’t suppose to know about it.   Revolutionaries destroyed police headquarters, attacked residences of government officials, and burned a jail and courts to the ground in different parts of Haiti on Friday. Insurgents are fighting … Read more

SOUTHERN CALIFORNIA GAS PRICES SOAR PAST $4 PER GALLON.

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via cbslocal: LOS ANGELES (CBSLA) — Four-dollar gas has returned to Southern California. Two weeks of daily price hikes have sent the average price of a gallon of self-serve regular gasoline well over the $4 mark across the region, even in outlying areas where prices are usually cheaper. Flashback: Aren’t California’s High Gas Prices What The Left Have … Read more