Silver as an investment

Category Archives: Secured Debt

Three Years After Going Public, Fairway Files Chapter 11

Back in April 2013, during the height of the IPO scramble, this is how the NYT reported about the initial public offering of a little known NYC grocery chain known as Fairway. Until recently, Fairway was not much more than a popular market on Manhattan’s Upper West Side, where residents went for goods like smoked […]

The Energy Junk Bond Default Rate Just Hit An All Time High

When we last looked at the soaring default rate among junk bonds issuers just two weeks ago, we noted that the $14 billion in defaults had already pushed the April total to the highest since 2014, while the first quarter was the fifth highest quarterly default total on record. But it was the stark deterioration […]

The New New ‘Deal’ – “Markets Are Too Important To Be Left To Investors”

Submitted by Ben Hunt via Salient Partner's Epsilon Theory blog, Five Easy Pieces for the World-As-It-Is Our story so far… In the second half of 2014, export volumes in every major economy on Earth began to decline, the result of divergent monetary policies that crystallized with the Fed’s announced tightening bias in the summer of […]

The Liquidity Endgame Begins: Whiting’s Revolver Cut By $1.2 Billion As Banks Start Slashing Credit Lines

Earlier today we reminded readers about the circular (and why note fraudulent conveyance) scheme hatched by JPMorgan to reduce its secured loan exposure to Weatherford, when just two weeks ago none other than JPM underwrote an WFT equity offering in which it sold equity in the company, and which proceeds were promptly used by the […]

The Shoe Keeps Dropping: CLOs With Negative Equity Soar By 30% In February To Record 453

One month ago, we noticed the latest “shoe to drop” in the global credit rout, when as a result of soaring downgrades to energy companies’ credit ratings, the Collateralized Loan Obligations (CLO) market went into a state of frozen animation, leading to a standstill in new CLO issuance. As we previously wrote citing S&P, the […]

The Oil Short Squeeze Explained: Why Banks Are Aggressively Propping Up Energy Stocks

Last week, during the peak of the commodity short squeeze, we pointed out how this default cycle is shaping up to be vastly different from previous one: recovery rates for both secured and unsecured debts are at record low levels. More importantly, we noted how this notable variance is impacting lender behavior, explaining that banks […]

How This Default Cycle Is Different: Record Low Recovery Rates

At the end of January, when looking at some recent liquidating energy companies selling off their assets in “stalking horse” bankruptcy auctions, we found something disturbing: total recovery rates under liquidation of oil and gas companies were paltry, ranging anywhere between 5 and 20 cents on the dollar, and averaging a little under 15 cents. […]

UBS: “There Is No Doubt That The Move In Oil Is TOTALLY Short Squeeze Led”, Here’s Why

Earlier today we showed how, courtesy of massive synthetic positions where Oil ETFs are currently net long 272k lots of oil, equal to 56% of the front month open-interest in futures, the price of oil is being propped up by ETF buying, either outright or via an ongoing, relentless short squeeze.   This was to […]

It Was True After All: The Government Is “Breathing Down The Neck Of Banks To Limit Their Energy Exposure”

While MatlinPatterson’s Portfolio Manager Michael Lipsky can’t wait to enter the distressed junk bond space, thanks to “$74 billion in debt trading at under 25 cents on the dollar, and $205 billion trading at under 70 cents on the dollar”, he agrees with BofA’s Michael Contopoulos that it is still far too soon to buy. […]

“The Bankers Have Gone Through This Before. They Know How It Ends, And It’s Not Pretty”

When even the commodity traders got caught in the crossfire of the energy rout – those supposedly smartest men (and women) in the room who were so smart, they not only never saw the commodity price crash nor did they hedge for any such possibility, leading to such snafus as both Glencore and Noble Group […]