RESTRUCTURING LEGEND WARNS OF CORPORATE DEBT BEING THE CATALYST FOR THE NEXT FINANCIAL “PERFECT STORM” — SOURCE: 07-12-18 ZeroHedge – “”This Is A Very Scary Scenario”: Restructuring Legend Warns Of Coming “Perfect Storm” — Two months-ago, we brought to your several very concerning quotes from some of the nation’s top restructuring bankers, of which the most […]
TRIGGER$ July 2018
WHY THE CARPET IS ABOUT TO BE PULLED FROM UNDER THE JUNK BOND MARKET
WHY THE CARPET IS ABOUT TO BE PULLED FROM UNDER THE JUNK BOND MARKET — SOURCE: 07-03-18 ZeroHedge – “Why The Carpet Is About To Be Pulled From Under The Junk Bond Market” — Last week we noted that ever since the start of 2018, an odd divergence has emerged in credit markets, where Investment Grade bonds […]
BONDS MINUS DURATION: A TRAIN WRECK IN THE MAKING?
BONDS MINUS DURATION: A TRAIN WRECK IN THE MAKING? — SOURCE: 07-11-18 Alliance Bernstein, Gershon Distenfeld – “Bonds Minus Duration: A Train Wreck In The Making?”– A bond allocation is like a railroad. Credit is the locomotive that generates high returns, duration the track that keeps the train in line. Take the track away and you […]
DIMARTINO BOOTH: CORPORATE BOND MARKET IS GETTING JUNKIER!
DIMARTINO BOOTH: CORPORATE BOND MARKET IS GETTING JUNKIER! — SOURCE: 07-11-18 Bloomberg – “The Corporate Bond Market Is Getting Junkier” — Authored by Danielle DiMartino Booth via Bloomberg, Few investors realize the ticking time bombs populating what they believe are the safest parts of their portfolios. Much has been made of the degradation of the $7.5 trillion U.S. corporate […]
IN-DEPTH: TRANSCRIPTION – TRADE WARS – WIN THE BATTLE, LOSE THE WAR!
IN-DEPTH: TRANSCRIPTION – TRADE WARS – WIN THE BATTLE, LOSE THE WAR! COVER AGENDA SLIDE 5 We have talked previously about Trump’s focus on US Trade imbalances and the potential for an era of looming global trade wars. We highlighted this most recently in April in a two part series with Charles Hugh Smith […]
HY FUNDS CONTINUE TO SEE RECORD OUTFLOWS
HY FUNDS CONTINUE TO SEE RECORD OUTFLOWS HY funds have continued to record outflows (34th consecutive week). Outflows have accelerated over the past week, as last week’s outflow has been the highest in 17 weeks. Looking into the domicile breakdown, European-focused funds have recorded the largest outflows. Outflows from US and globally-focused funds were also […]
INVESTORS’ NEGATIVE FREE CASH BALANCES AT HIGHEST IN MARKET HISTORY
INVESTORS’ NEGATIVE FREE CASH BALANCES AT HIGHEST IN MARKET HISTORY Leverage “There are two other problems currently being dismissed to support the ‘bullish bias.’ The first, is that while investors have been chasing returns in the ‘can’t lose’ market, they have also been piling on leverage in order to increase their return. Negative free cash balances are now […]
INVESTORS SINCE 2014 HAVE BEEN PAYING TWICE THE RATE OF EARNINGS GROWTH
INVESTORS SINCE 2014 HAVE BEEN PAYING TWICE THE RATE OF EARNINGS GROWTH Always Optimistic “Since the end of 2014, investors are paying twice the rate of earnings growth.” “No matter how you look at the data, the point remains the same. Investors are currently overpaying today for a stream of future sales and/or earnings which […]
CONSUMER CREDIT GROWTH SUSTAINING CRUMBLING REAL DISPOSABLE INCOME
CONSUMER CREDIT GROWTH SUSTAINING CRUMBLING REAL DISPOSABLE INCOME Here is what is happening… Here is what US consumers have been forced to do…. It is now getting worse – fast! It doesn’t take a “rocket scientist” to see the problem!! — SUPPORTING SOURCE: 07-09-18 ZeroHedge – “Consumer Credit Explodes Higher As Credit Card Debt […]