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Rising Rates Could Create A Disorderly Bond Market Sell-Off Unlike Anything...
The Wall Street consensus is that Treasury yields are headed higher in 2013. That's big news because it could mark the end of a three-decade bull market in bonds.Strategists expect those higher yields...
View ArticleThe Bond ETF Market Is A Massive Accident Waiting To Happen
This has been an occasional theme for us, but after some conversations last week, think it warrants a deeper look. The various parties interacting in the market have become more correlated and the...
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Even The Savviest Finance Folk Have Never Heard Of This $17 Trillion Credit...
It turns out that the biggest financing market is not in corporate bonds or even mortgages. It's trade receivables. According to the Receivables Exchange, $11 trillion of trade receivables is...
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GOLDMAN: Credit Markets Shouldn't Fear Rising Rates
There have been rumblings from credit strategists at Citi, Société Générale, and BofA Merrill Lynch in the past few days warning clients that if Treasury bond yields rise too quickly this year, there...
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There's Going To Be A 'Brutal Reallocation Of Risk'
Société Générale FX strategist Sebastien Galy thinks the second half of 2013 will be very interesting for markets.In a note titled "Asset rotation or something more sinister? Pre-Lehman vs now," Galy...
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This Week's Data On Fund Flows Contain A New Disturbing Signal
Flows into equity funds totaled $6.6 billion in the first week of February. January's historic inflows averaged $13.5 billion a week, but this isn't really a strong signal that flows into mutual funds...
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BofA Analysts Use Terrifying Aerodynamic Phenomena To Describe Trouble In The...
The astounding rally in the high-yield corporate bond market (i.e. junk bonds) over the past two months has finally hit a bit of a wall alongside a stall in the broader rally in risk assets (e.g....
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Many Investors Don't Recognize An Important Risk That Has Sprung Up In Their...
We are just one month into 2013, and investors have already seen the relentless run in high-yield (HY) bonds continue. Despite a backup in the last week of January, HY has notched a total return of...
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CITI: There's A Crisis Lurking In The Bond Market And No One Is Talking About It
The Federal Reserve has revealed that it is considering scaling down and possibly even completely halting quantitative easing by the end of this year.Whether or not the central bank will actually be in...
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CHART OF THE DAY: We Should Be Thankful For This Financial Innovation That...
In August, U.S. auto sales hit an annualized rate of 16.0 million units. This is the fastest pace of sales since November 2007.However, this has come during a period when median incomes in America have...
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Ominous things are happening in the credit markets
There are ominous things happening in the credit markets, and investors are becoming increasingly concerned. To the casual observer of markets, these signs are probably less apparent because there has...
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A cold chill is blowing through the bond market
It is getting chilly out there.UBS credit strategists Stephen Caprio and Matthew Mish put out a note Thursday titled "Non-Bank Liquidity Chilled by Macro Shocks."By "non-bank," the strategists...
View ArticleThe credit markets are setting up for the greatest bust we've ever seen
A friend of mine just emailed me the chart below. Considering the fact that we just witnessed 7 full years of ZIRP (zero interest rate policy), I probably shouldn’t be surprised just how massive the...
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Argentina is offering $6.5 billion in cash to pay off its creditors
NEW YORK/BUENOS AIRES (Reuters) — Argentina offered a $6.5 billion cash payment to creditors who hold its defaulted bonds on Friday, seeking to end a festering legal battle that transformed the country...
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The real economy and markets are so far apart they look like 'two parallel...
Depending on where you look the outlook for the economy is either serene or a total disaster.That is according to Ken Leech, chief investment officer at Western Asset Management.Leech wrote in a recent...
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The 'year of bonds' is almost over, but there's still hope in US markets
In many ways, 2016 has been the year of bonds, at least so far: Global aggregate bond markets have outperformed global equity markets year to date. That leaves many investors wondering if bonds still...
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The debt market could get ugly
Things haven't been pretty for energy companies that have a lot of debt. Low oil prices have pressured profits and led to skyrocketing defaults and an ugly state of affairs for energy debt.The tough...
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French and Dutch elections kick-started the biggest exodus ever in foreign...
LONDON — Investors have pulled €1.04 billion (£890 million, $1.1 billion) out of European investment grade credit funds over the last week, JPMorgan said in a note to clients on Monday, the largest...
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China can deflate the world's largest credit bubble in an orderly fashion
China’s authorities are committed to orchestrating an orderly unwind of US$3 trillion worth of excess credit and the resultant distressed debt on banks’ balance sheets by employing a multi-pronged,...
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The way Tesla and Amazon are raising billions shows why traders shouldn't be...
While the stock market was taking it on the chin late last week, hidden machinations were already underway to save it from further pain.On Friday, as the S&P 500 was completing a 1.6% skid over...
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