Credit Bubble Bulletin

Credit Bubble Bulletin2018-10-30T12:00:02-07:00

Presented by Doug Noland

Daily Commentary

Thursday, January 23, 2020

[Reuters] Virus fears sap stocks; ECB gets ready for rethink

[CNBC] Mainland Chinese stocks drop as much as 3.5% as coronavirus fears grip investors

[Reuters] Oil slump deepens as China virus casts cloud over fuel demand, economy

[Reuters] China orders ‘unprecedented’ lockdown of two cities at virus epicenter

[CNBC] White House has started work on second round of tax cuts to boost growth, Mnuchin says

[CNBC] ECB launches review that will redefine its mission and tools

[Reuters] Japan exports shrink for 13th month in further blow to economy

[Reuters] China central bank to lower funding costs, prevent debt and inflation risks: adviser

[Reuters] After China trade deal, Europe and UK next on Trump’s to-do list

[Reuters] Lebanon’s new government may have little reserves left to stabilize economy

[Bloomberg] China Traders Dump Stocks With Any Link to Virus Epicenter Wuhan

[Bloomberg] Trump’s Trade Deal Hastens China’s Retreat From U.S. Farmers

[Bloomberg] ‘Peak Greed’ Fuels Record Junk Bond Sales in Europe

[Bloomberg] Amateur Investors Are Making Risky Bets That Could Wipe Them Out

[Bloomberg] HNA Faces $500 Million Debt Deadline Before Lunar New Year

[Bloomberg] State Bank Chairman Says Yes Bank ‘Will Not Be Allowed to Fail’

[Bloomberg] CLOs Are Packed With New Loopholes, Triggering Investor Backlash

[Bloomberg] Inside China’s Virus Zone, Unease Grips a City in Lockdown

[WSJ] Ebullient Mood in Davos Should Put Investors on Edge

[WSJ] Political Turmoil Triggers Slump in Italian Assets

[FT] Eurozone bankers launch fresh push against negative rates

[FT] Wuhan hospitals overwhelmed as China fights coronavirus

Weekly Commentary

January 17, 2020: “This is Insane”

Please join Doug Noland and David McAlvany this coming Thursday, January 23rd, at 4:00PM Eastern/ 2:00pm Mountain time for the Tactical Short Q4 recap conference call, “Surviving an Equities Melt Up” Click here to register. “…Investors kept plowing money into U.S.-listed ETFs. A cool $13.4 billion flowed into the space during the week…, sending year-to-date inflows to $35.2 billion, well ahead of year-ago levels of $8.4 billion.”

Bloomberg: “Global currency volatility has dropped to the lowest level ever recorded.”

Bloomberg: “Bond managers are starting to contemplate the prospect of another decade without a Federal Reserve interest-rate hike.”

Bloomberg: “Forward price-to-earnings ratios for U.S. growth stocks have reached levels only seen in eight months over a span of three decades of data…”

Reuters: “J.P. Morgan Chase posted profit and revenue that smashed through analysts’ expectations on a strong rebound in trading revenue… Bond trading revenue surged 86% to $3.4 billion…”

Bloomberg: “‘This is Insane’: Muni Yields at the Lowest Since Elvis was King.”

We’re witness to historic developments across global financial markets extending far beyond an equities melt-up. U.S. corporate Credit this week traded near the narrowest spreads (to Treasuries) since 2007. Popular Credit default swap (CDS) indices priced this week at pre-crisis lows – investment-grade and high yield. At 46 bps, Goldman Sachs (5-yr) CDS closed the week at the low since 2007. JPMorgan CDS fell five bps this week to 30.6 bps, the low going back to October 2007. A Leveraged Loans index closed Friday at a record high price. European fixed-income CDS ended the week at or near multi-year lows – investment-grade, high-yield and financial. And this week from Bloomberg: “U.S. High-Grade Market Devours Nearly $100 Billion in New Debt.” (more…)

Load More Posts

Credit Bubble Bulletin – Archives

Doug Noland Interview: “In The Next Crisis The Fed’s Balance Sheet Will Hit $10 Trillion”

To read the entire article from Zero Hedge with Doug Noland, be sure to click here.