Silver as an investment

Category Archives: Citigroup

So Why Did Capital One “Suddenly” Exit Mortgage Lending??

Last week, Capital One Financial (COF) announced that is was formally withdrawing from the residential mortgage loan market.  Some observers mistook this announcement for news, thinking that COF had actually been engaged in residential lending in a serious way.  Housing Wire, for example, reported that COF had “suddenly” exited the mortgage and home equity business. […]

“It’s A Vicious Cycle”: Goldman Abandons Equity Options Market-Making As Vol Collapses

October is historically the most volatile month of the year, but in 2017 – the average volatility of US equity markets dropped to an all-time record low…   … And you know something's wrong when, just like in early 2007 when the crash in vol killed the swaptions industry – just before all hell broke […]

“They’re Ba-ack!” – Citi Says Synthetic CDOs May Reach $100 Billion In 2017, 5x Increase In 2 Years

35-year-old Jia Chen of Citibank probably has no idea where that title quote above came from.  That’s because she was roughly 4 years old when Poltergeist II hit theaters back in 1986… …that said, Citibank, as we noted a few weeks back, has every confidence that Jia is the perfect person to put in charge […]

China Issues First Dollar Bond Since 2004, Bails Out Corporate Liquidity

Despite downgrades from the rating agencies, China is issuing its first sovereign dollar bond issues in 13 years on an unrated basis (what do the agencies know anyway) and at tight spreads to US Treasuries. The 5 and 10-year issues come just over a month since S&P cut the nation’s rating one level to A+ […]

10Y Treasury Yields Just Did Something Every Bond Bear Was Waiting For

10Y Treasury yields just crossed 2017's Maginot Line of 2.40% – the highest in six months…   Following Jeff Gundlach's bearish bond perspective, and the signals from the commodity/reflation markets…  Citi is warning that 2.39-2.40% is HUUUUUGE on the US 10 year yield A break of this resistance (close) would strongly suggest a move to […]

The ECB Has Bought €1.9 Trillion In Bonds: Here Is Who Sold And What They Did With The Money

Since the ECB launched its sovereign debt QE, initially known as PSPP, in March 2015 and later expanded to include corporate debt, or CSPP, in June 2016, the world’s biggest hedge fund central bank has created enough money out of thin air to purchase bonds with no consideration for price to grow its balance sheet, […]

Pay-TV Companies Tank As Subscriber Losses Surge To Record Highs In 2017

As the broader markets casually melt-up to new record highs with each passing day, one small corner of the equity market is in full on meltdown mode: cable and satellite pay-tv providers.  Down anywhere from 3-10% on the week, investors in this space seem to be finally admitting that record subscriber losses, quarter after quarter, […]

World Stocks Hit 4th Consecutive Record High, Bonds Rise On ECB QE Report

World stocks rose to a 4th consecutive record highs, while the dollar headed for its worst week; U.S. stock-index futures are steady, with European and Asian stocks higher ahead of much anticipated US inflation data, which is expected to give cues on the outlook for the Federal Reserve’s interest rates. MSCI’s all world equity index […]

Ralph Nader: How CEO Stock Buybacks Parasitize The Economy

Authored by Ralph Nader via Evonomics.com, The monster of economic waste – over $7 trillion of dictated stock buybacks since 2003 by the self-enriching CEOs of large corporations – started with a little noticed change in 1982 by the Securities and Exchange Commission (SEC) under President Ronald Reagan. That was when SEC Chairman John Shad, […]

Gallo Warns: A Volatility Trap Is Inflating Market Bubbles

Authored by Alberto Gallo via Bloomberg.com, A number of markets show not only elevated valuations, but also irrational investor behavior… Investors face a conundrum: The world is experiencing a record synchronous growth phase, but an increasing number of assets are becoming overvalued just as fundamental risks lurk in the background. Should investors continue to dance […]