Well, Is There A Future Or Isn’t There?
"Despite mounting risks out of Europe in a lack of progress at the EU summit, with leaders unable to agree on joint stimulus measures and possible Italian credit action tonight from S&P, much of the cross-asset landscape is trading relatively sideways in tight ranges, as the ongoing normalization of vol continues", Nomura's Charlie McElligott wrote Friday.
He echoed his comments from Thursday around the collapse in vol of vol, as traders price out the tails.
I suppose it's easier to compre
Phil knows best
I do not know the size of commercial real estate loan market in US- but this is in serious trouble. There is not a plan to deal with the upcoming May 1 and June 1 crises.
A significant number of tenants (commercial office, retail, industrial) did not pay rent on April 1. Landlords were able to borrow on existing LOCs to make April 1 mortgage payments, but this is going to be worse on May 1 and June 1 because even more tenants will not pay, less is available to be drawn down on remaining LOCs, and banks are not making any meaningful concessions to borrowers (interest only for a few months- is the best that I have heard). Banks are holding firm – expecting borrowers to come up with equity to pay down loans.
Landlords still have to pay real estate taxes (not insignificant in many cases), common operating expenses, as well.
If a small business had any liquidity or access to liquidity and the owners do not have personal liquidity, they are accessing the business liquidity and distributing that liquidity to themselves.
It would be interesting to see the FED buying oil and having to take delivery… Did they have giant tank farms we weren’t aware of?
“Investment-grade companies will be able to either access the normal capital markets or will be able to access the Fed’s investment-grade facility”, he went on to remark, effectively ruling out a scenario where taxpayer funds would go to drillers that retain market access.
A question: Isn’t the Fed’s investment-grade facility effectively taxpayer funds?
cue Stephanie Kelton…