Silver as an investment

Category Archives: Long-Term Capital Management

To Avoid Liquidation Panic, HNA Assures Deutsche Shareholders It’s A “Long-Term Investor”

The notoriously acquisitive Chinese conglomerate HNA – which recently had a sharp falling out with Beijing resulting in a margin call "shocksave" – is facing a serious cash crunch in 2018 as nearly a quarter of its $100 billion in debt – a large chunk of which was accumulated during a multi-year buying spree that […]

Twelve Days Of Christmas Fed’s QE Gave To Me – by Michael Carino, Greenwich Endeavors

On the 12th day of Christmas Fed’s QE Gave To Me: TWELVE Fed Districts Dancing ELEVEN Bubbles Bubbling – (11 – Crypto Currencies like the recently famous soon to infamous Bitcoin, Bonds (every one of them), Stocks, Intra-day leverage from high volume trading, Emerging Markets, Short Volatility Trades in a temporarily suppressed volatility environment, Liquidity […]

Someone Just Made $60 Million Betting That The Crowd Is Wrong

Over the weekend we warned that just as everyone was convinced that the yield curve can only flatten from here, and was positioned massively on the long side of the 30Y future, the opposite was about to happen, and in a tweet highlighting the record net spec long positioning in 30Y futures, we said “here […]

Bond Bears Beware As Ag Prices Hit Record Low

Long-end bond yields are lower and the front-end higher once again this morning as the US Treasury yield curve continues to confound by flattening. Bloomberg macro strategist Mark Cudmore suspects there is more to come… for one simple reason, so often overlooked… Via Bloomberg, Cheaper eats are great, but maybe not if you’re one of […]

LTCM Is Back: One Hedge Fund Uses 25x Leverage To Beat The Market

Before we start, a little history lesson… At the beginning of 1998, Long-Term Capital Managementhad equity of $4.72 billion and had borrowed over $124.5 billion with assets of around $129 billion, for a debt-to-equity ratio of over 25 to 1.   It was run by finance veterans, PhDs, professors, and two Nobel Prize winners. Everyone […]

The Fed Is About To Hike: Why That Is Bullish For Bonds

With the market pricing in near certainty of a June rate hike despite the Fed’s tacit warning that it would like to see evidence the recent economic slowdown is over, a recurring question among trading desks is why aren’t long-dated bonds selling off more, or rather why is the 10 and 30Y seemingly bid the […]

Why Everyone Is Complacent: “2016 Saw The Fewest S&P 500 Drawdowns Ever”

One week ago we were surprised to read that, in Tom Lee’s 2017 market outlook, Wall Street’s formerly most vocal cheerleader and its most prominent permabull had unexpectedly turned into one of the most skeptical bears. As a reminder, at a time when virtually every other Wall Street strategist, even the quasi skeptics, are convinced […]

BIS Warns OF Bouts Of Extreme Volatility, As Market Undergoes “Paradigm Shift”

The Bank of International Settlements is particularly good at two things in its periodic quarterly review update: i) stating the obvious, especially when it comes to summarizing the trader and market participants concerns at any given moment, and ii) having its constituent central bank members – after all the BIS is the “central banks’ central […]

Struggling Euro Zone Nations Increasingly Forced To Turn To Hedge Funds For Debt Funding

With pensions around the world increasingly reallocated funds to equity markets in a desparate effort to close funding gaps amid recklessly low central banking rates, and traditional banks tapped out by regulatory restrictions on their balance sheets, struggling Euro Zone countries are increasingly being forced to turn to hedge funds to fill their debt issuances.  […]