FIRST WARNING: CREDIT PROTECTION EXPLODES UPWARD We are witnessing a global explosion in Sovereign Credit Default Swap pricing. Costs around the world are up by over 1/3, with China, Indonesia, Japan and Korea in Asia currently the hardest hit by the Coronavirus. Noticeable is also select European countries with the media focused on the cases […]
INVESTORS FLEEING HIGH YIELD, SIMILAR TO FINANCIAL CRISIS Investors are starting to come to a more realistic outlook about the forward-looking growth prospects, as well as the power of central banks to pump up asset prices. Tyler Durden reports that: It seems the warnings from PIMCO’s Scott Mather that: “We have probably the riskiest credit market […]
RUSSELL 2000 DEBT GROWTH & CREDIT QUALITY A GROWING CONCERN MATASII RESEARCH ANALYSIS & SYNTHESIS: Non-bank corporations’ new debt has outpaced the free cash that these companies have been generating – especially companies that make up the Russell 2000 index. This could suggest further vulnerabilities going forward. Perhaps the most frightening detail is that […]
GLOBAL CDS – WINNERS & LOSERS — MATASII RESEARCH ANALYSIS & SYNTHESIS — These tables show the largest 25 companies, ranked by market cap & credit default swap spreads, as well as the most creditworthy countries. CORPORATION 17bps: the CDS of the “safest” company in the world, Nestle. Alibaba the least (CDS = 84bp). COUNTRY […]
CORPORATE LEVERAGE GOING TO GET $3T WORSE JANUARY 1 DUE TO NEW ASSET ACCOUNTING RULES A PUBLIC SOURCED ARTICLE FOR MATASII (SUBSCRIBERS & PUBLIC ACCESS) READERS REFERENCE SOURCE: 02-17-19 – “$3 Trillion In New Liabilities Are About To Blindside Corporate Balance Sheets” MATASII SYNTHESIS: A massive $3 trillion in corporate liabilities is about to show up on […]
SHADOW BANKING HAS AGAIN MASKED RISK THROUGH DEBT RATINGS, COLLATERAL TRANSFORMATION & CLO’S, A PUBLIC SOURCED ARTICLE FOR MATASII (SUBSCRIBERS-RESEARCH & PUBLIC ACCESS ) READERS REFERENCE MATA: DRIVERS – CREDIT 12-22-18 – “Is This ‘Tinder For Corporate Credit’ The Latest Harbinger Of A Debt Implosion?” MATASII TAKEAWAYS: Wells Fargo and JPM are presently stuck with more than $400 […]
“DEALERS ARE HOARDING COLLATERAL” AT A RATE NOT SEEN “SINCE THE WORST DAYS OF 2008” A PUBLIC SOURCED ARTICLE FOR MATASII (SUBSCRIBERS & PUBLIC ACCESS) READERS REFERENCE 12-20-18 – Alhambra Investment Partner, Jeffrey Snider- “Dealers Are “Hoarding Collateral” At A Rate Not Seen “Since The Worst Days Of 2008″” MATASII TAKEAWAYS: This one’s more about collateral transformation using US […]
FED’S WARNING ON LEVERAGED LOANS SECONDED BY US BANK REGULATOR A PUBLIC SOURCED ARTICLE FOR MATASII (SUBSCRIBERS-RESEARCH & PUBLIC ACCESS ) READERS REFERENCE MATA: DRIVERS – CREDIT 12-03-18 – “Fed’s Warning on Leveraged Loans Seconded by U.S. Bank Regulator” MATASII TAKEAWAYS: The Office of the Comptroller of the Currency cautioned in its Semiannual Risk Perspective that it’s […]
CREDIT CYCLE WARNING: EMERGING MARKET SOVEREIGN BONDS CHEAPER THAN US HIGH YIELD! — SOURCE: 06-14-18 Forbes – “When Will The High-Yield Credit Bubble Burst?” — U.S. Federal Reserve Chairman Jerome Powell speaks during a news conference June 13, 2018 in Washington, DC. After a two-day meeting the Chairman Powell announced that the Fed will increase […]
DOLLAR FUNDING PRESSURES EXPLAINED Short-term borrowing costs in the U.S. have risen to levels unseen since the financial crisis, and recent moves in two closely watched indicators — the London interbank offered rate and its spread with the Overnight Index Swap rate — are causing some consternation. The spread has expanded to its widest level […]
