by WARREN MOSLER China exports falling with tariffs: China’s November export, import growth shrinks, showing weak demand US exports turning south as well? The deceleration that started with the collapse of oil capex in Dec 2014 took a brief zig …
via Bloomberg: A key regulator of Wall Street banks has joined the Federal Reserve in warning about risky corporate borrowing that has reached record levels as lender protections are eroded. The Office of the Comptroller of the Currency cautioned in its Semiannual …
via Sally Bakewell Investors pulled cash from funds that invest in leveraged loans, while high-yield debt draws scrutiny from the Federal Reserve for losses it could inflict on investors in a downturn. Mutual and exchange-traded funds saw outflows of $1.32 billion in the week ended …
A risky resurgence? Leveraged finance has doubled in size since the Great Financial Crisis, but vulnerabilities may arise with the normalisation of monetary policy #LeveragedLoans https://t.co/GE9d9Ag8iX pic.twitter.com/p8xrmX1DHR — Bank for International Settlements (@BIS_org) November 7, 2018 US debt costs continue …
Wow! I never thought I'd see this anytime soon. Leveraged loans just posted a massive outflow for week ended 10/31. @lcdnews pic.twitter.com/QrM8wbONqO — Taylor-Swift Yield Spread (@TayTayLLP) November 1, 2018 Preparing For The Bust: Investors Load Up On Record Leveraged …
by WARREN MOSLER Looks like without the build in private inventories GDP was about 2% lower at about 1.4%, and health care added .77% where health care premiums paid count as personal consumption. Also, the price index deflator was lower …
“there are a lot of firms that will go bankrupt” in the coming down-cycle. Yellen and Powell are on the same page. This bubble in leveraged loans ($1.3 trillion!) is destined to end badly…"there are a lot of firms that …
Interesting tid-bit from the article: “The riskiest category of borrowers has never been more leveraged. Companies with junk credit ratings are holding a record low $8 of debt for every $1 of cash, according to S&P.” also this “Ben Breitholtz, …
Leveraged-Loan Risks Are Piling Up Rising interest rates have a peculiar effect. US junk-bond issuance in June plunged 31% from a year ago to just $14.5 billion, the lowest of any June in five years, according to LCD of S&P Global Market …
via Leveraged Loan The U.S. leveraged loan market made headlines recently when it officially became a $1 trillion asset class, buoyed by the dizzying pace of issuance since 2017. This debt has to be repaid, of course (in theory). Leveraged loan …
Here’s One Reason to Worry About Emerging Markets A lot has changed since the late 1990s, when a period of credit-fueled growth ended in a wave of defaults and devaluations that swept from Asia through Russia and all the way …
Guest post by incogthrowawayofthed Whenever I see someone bring up leveraged ETFs, the first responses I see are people saying you can’t hold them long term due to “beta/leverage decay.” Beta decay is really just another name for compounding. Beta …
America’s Finance In Bad Shape And Getting Worse Have to cut taxes AND govt spending. And #market is huge leveraged 76 million Americans are struggling financially or just getting by Bill Gates says it’s ‘a certainty’ that we will have …
BY SRSROCCO Enjoy the good times while you can because when the economy BLOWS UP this next time, there is no plan B. Sure, we could see massive monetary printing by Central Banks to continue the madness a bit longer after …
@NorthmanTrader There’s overwhelming evidence that the U.S. stock market is heading for disaster The economy is more leveraged than ever First up is Grant Williams, who sent me a monumental slide deck. Here’s an example of craziness: Grant Williams …
The complete failure of this system is being exposed. The amount of leverage has always, every single time, caused a crisis to expand faster and harder then originally thought. There are no soft landings, Janet Yellen. Only crashes, loss of …