Silver as an investment

Category Archives: Covenants

Mauldin: The Bonfire Burns On

Authored by John Mauldin via MauldinEconomics.com, “Life invests itself with inevitable conditions, which the unwise seek to dodge, which one and another brags that he does not know, that they do not touch him; but the brag is on his lips, the conditions are in his soul. If he escapes them in one part they […]

Bill Blain: “Stock Markets Don’t Matter; The Great Crash Of 2018 Will Start In The Bond Market”

Blain’s Morning Porridge, Submitted by Bill Blain of Mint Partners The Great Crash of 2018? Look to the bond markets to trigger Mayhem! I had the impression the markets had pretty much battened down for rest of 2017 – keen to protect this year’s gains. Wrong again. It seems there is another up-step. After the […]

Junk Bond Debt Covenant Quality Drops To All Time Lows

By Mark Rzepczynski of the Disciplined Systematic Global Macro Views blog Corporate spreads are tight and there is little room for further reduction given the absolute level of spreads.   The reach for yield may be at an extreme. The bond spread is the compensation given bondholders for taking on the risk of corporate debt; […]

Shocking Admission From Global Head Of Strategy: “Our Clients Have Given Up On Valuation As A Metric”

For all the recent concerns about an “imminent” nuclear war with North Korea (not happening, according to the head of the CIA), which prompted a stunned reaction from Morgan Stanley which earlier today observed the “70% rise in the VIX index over three days, 2% drop in global equities, and more than a few holidays […]

Tesla Upsizes Junk Bond Offering After Excess Demand

There’s covenant-lite and then there’s “zero covenant” junk debt, and moments ago Tesla just sold $1.8 billion of the former, upsizing what was previously expected to be a $1.5 billion issue. The deeply junk “B3/B-” rated bond was priced at par to yield 5.25%, with Goldman – who famously slashed its Tesla price target to […]

Netflix Is Spending Twice As Much As Amazon On Content

When it comes to Netflix and its stratospheric (forward) valuation, the thesis is simple: the company is (so far) the undisputed leader in the arena of internet streaming. As the LA Times summarizes, the global streaming giant today boasts impressive stats: 104 million subscribers worldwide, up 25% from last year and almost quadruple from five […]

Saudi Arabia, Egypt, UAE, & Bahrain Cut Diplomatic Ties, Shut All Borders With Qatar

Just days after president Trump left the region, a geopolitical earthquake is taking place in the Middle East tonight as the rift between Qatar and other members of the (likely extinct) Gulf Cooperation Council explodes with Bahrain, UAE, Saudi Arabia, and Egypt cutting all diplomatic ties with Qatar accusing it of "speading chaos," by funding […]

Goldman Sachs & Morgan Stanley Pull Off the Heist of the Decade, Bends Over Those Who Don’t Read BoomBustBlog

President Obama implemented the Fiduciary Rule, which was supposed to go in effect next month. In short, it says financial advisors and salesmen had to put the best interests of thir clients ahead of thier own interests. In other words, it outlawed blatantly ripping off our clients. Trump came in and halted this, basically ensuring […]

U.S. Startups Increasingly Tapping Debt Markets As VCs Pullback From Egregious Valuations

After investing nearly $80 billion into startups in 2015, Venture Capitalists, growing slightly weary of the $1 billion valuations being handed out like candy to every 22 year old with an app that can replace your face with that of panda, have pulled back a bit in 2016 resulting in a 10% reduction in equity […]

P2P Meltdown Continues: LoanDepot’s CDO Collapses Just 10 Months After Issuance

We first noted Wall Street’s misguided plan to feed its securitization machine with peer-to-peer (P2P) loans back in May 2015 (see “What Bubble? Wall Street To Turn P2P Loans Into CDOs“).  Obviously we warned then that the voracious demand for P2P loans was a direct product of central bank policies that had sent investors searching […]