Past 10 days have been wild:
— Capital One shut off all dealer floorplans (aka inventory lines of credit)
— USA Auto Sales shut down 39 dealerships after losing its Ally floor plan
— Wells fargo laid-off all its junior Auto loan underwriters and capped future loans
Insanity.
— CarDealershipGuy (@GuyDealership) April 18, 2023
Stocks Face Hit as $800 Billion Stimulus to Fade, Citi Says – Bloomberg
Equities and other risk assets will take a hit when central banks withdraw as much as $800 billion of stimulus deployed to prop up the global economy, according to Citigroup Inc.
The risk rally has been fueled by the injection of over $1 trillion of central bank liquidity, and high-frequency liquidity indicators suggest this is already stalling, Matt King, Citi’s global markets strategist, wrote in a note published late Tuesday in New York. Apart from monetary support deployed by other central banks, the Federal Reserve has also bolstered its balance sheet by $440 billion in the wake of the US banking crisis, he said.
"We're very likely to see mortgage defaults in the headlines, and at a minimum, this may spook lenders, throw sand into the gears of the financing and refinancing processes, and further contribute to a sense of heightened risk," Billionaire investor Howard Marks has said.
— unusual_whales (@unusual_whales) April 19, 2023
What bullish pundits can't figure out is that the entire rally since October was based upon lower rates.
If rates go higher now, the rally will implode. And if we get a recession, the rally will implode.
Bulls, you are officially TRAPPED. pic.twitter.com/gXwFPkgXvD
— Mac10 (@SuburbanDrone) April 18, 2023
The average interest rate on 48-month new car loans in the US is at 7.46%, the highest since 2007, per Charlie Bilello.
— unusual_whales (@unusual_whales) April 19, 2023
🇺🇸 Small Business Confidence
Historically, the NFIB Small Business Confidence Index below 100 is a recessionary warning
👉 t.co/blMxcoFA78h/t @LanceRoberts #markets #equities #recession $spx#smallcap $rut #smallcaps #stockmarket #stocks #investing pic.twitter.com/u8PKMkStB7
— ISABELNET (@ISABELNET_SA) April 19, 2023
Crypto Crashes Amid Cascade Of Long Liquidations t.co/sfeJVG2QD0
— zerohedge (@zerohedge) April 19, 2023
Morgan Stanley Slides As Credit Loss Provisions Surge Due To Commercial Real Estate Exposure t.co/as7PgsuBFg
— zerohedge (@zerohedge) April 19, 2023
Is this the next leg down for global risk assets?
Every time Bitcoin peaked, the Nasdaq peaked as well. pic.twitter.com/DnXJLWuFs3
— Mac10 (@SuburbanDrone) April 19, 2023
Subprime Firm U.S. Auto Sales Temporarily Closes Dealerships
U.S. Auto Sales, a car dealer that caters to consumers regardless of their credit history, has temporarily closed its dealerships as pressures in the auto market rapidly mount.
Bank of America Reassures Investors About $99 Billion of Unrealized Bond Losses
The bank’s CFO emphasized that the bank’s net interest income would rise in higher-rate income, even as it was hit by losses on its bond portfolio.
Biggest US Banks Wrote Off $3.4 Billion in Bad Consumer Loans
Bank of America Corp. joined its largest rivals in setting aside more reserves as a growing number of consumers couldn’t keep up with their loan payments, even as executives dialed down fears of a looming crisis.
Hong Kong Interbank Liquidity Set to Hit Lowest Since 2008
Hong Kong’s interbank liquidity is falling toward its lowest level since the global financial crisis, following a series of intervention by the city’s de facto central bank to defend the local currency’s peg to the dollar.
Bank of America Clients Flee US Stocks for Third Straight Week
Bank of America Corp. clients pulled out of US equities for a third consecutive week, even as the stock market extended this year’s push higher.
$1 Billion Sale Marks First Major Bank’s AT1 Bond Offer Since Credit Suisse Wipeout
The market for Additional Tier 1 bonds is back in business with a big offering by a Japanese bank just weeks after Credit Suisse Group AG’s collapse hammered the notes.