Category Archives: High Yield
Warning: the Oil Crash Is Just Days Away From Triggering a Debt Crisis
The Oil collapse is about to trigger a crisis in junk bonds. Oil has been going straight down for weeks now. As we write this, black gold is below $43 a barrel, down 16% from its levels a month ago. “So what?” you might ask, “Oil experiences similar drops all the time. Why is this […]
WTI Tumbles To $42, Brent Below $45 As Credit Crashes
High yield energy credit markets are in trouble again, with risk now at its highest level in 7 months. Despite this morning’s Iran-hyped OPEC bullshit and a small draw in Gasoline, it appears the reality of surging US shale production and lagging demand is weighing down oil (and gasoline) markets… Since OPEC announced its production […]
What Keeps Bank of America Up At Night
It has been a painful, bruising intellectual exercise for BofA’s HY credit strategist Michael Contopoulos, who after starting off 2016 uber-bearish, was – together with every other money manager and advisor – taken to the woodshed, and forced to flip bullish, kicking and screaming, and advising BofA clients to buy the same junk bonds he […]
A Confused Trader Discusses The VIX And Markets With His Taxi Driver
From “Blain’s Morning Porridge – May 16th 2017” by Bill Blain of Mint Partners “Now all them things that seemed so important, well mister, they vanished right into the air….” I’ve been very fortunate this morning to spend 30 minutes in the company of perhaps the wisest man in the whole of London. Stuck […]
These Three Charts Are Warning the Market Could Soon Experience an “Event”
The markets are speaking, but no one is listening. The single driver of the stock market since election night is the hype of a Trump-policy driven economic boom. The economy is booming, but based on expectations NOT actual policy changes. This is a critical distinction. Stocks are MOST susceptible to violent drops (or even Crashes) […]
Spectacular 7 Year Auction: Record Indirects, Soaring Bid To Cover
After a strong 2 Year on Tuesday, poor 5 Year on Wednesday we close the week with the Treasury’s sale of $28 billion in 7 Year paper in what can only be described as a spectacular auction. The high yield priced at 2.084%, stopping 2bps through the 2.104%, the biggest gap between the two going […]
Treasury Sells $34 Billion In 5Y Paper In Ugly, Tailing Auction At Lowest Yield Since November
After yesterday’s stellar 2Y auction, moments ago the Treasury sold $34 billion in 5 Year paper in what can only be described as a quite ugly auction. The high yield printed at 1.875%, which maybe because it was the lowest stop since November’s 1.76%, drew far less bidside interest than yesterday’s auction. It also tailed […]
Which Hedge Funds Are The Biggest Holders Of ETFs
The relentless growth of passive investing in general, and ETFs in particular, has been extensively discussed on the pages over the past few years, most recently overnight when we presented a note from Convergex which laid out some ideas how investors can profit from the unstoppable – for now – shift from active, and expensive, […]