One Strategist Compared Hedge Funds To Passive Index Funds: “The Results Were Breathtaking”

“Hedge funds’ returns have started to track the SPX more closely. As that happens, their ability to outperform has collapsed. This makes intuitive sense; there’s no way you can beat an index when you’re paying 2 and 20 on an investment vehicle that largely replicates the return of the index!”

Read More

Goldman “Unmasks” The Culprit Behind US Auto Loan Delinquencies

” However, the chart masks the growth of “deep subprime” lending programs, targeting borrowers with credit scores far below the 620 cutoff. For example, some recent deep subprime ABS transactions featured pools with average credit score of just 545, with 20% of borrowers not having a credit score at all, a condition known to signal high default risk.”

Read More

Car-mageddon: Your Complete Guide To A Bursting American Auto Bubble

“There are a number of negative implications from what we’re observing, including rising negative equity in new car loans, lengthening ownership cycles, tightening credit, and potential for deteriorating mix/pricing (And we see risk of continued deterioration as used vehicle prices remain under pressure, and new vehicle inventories remain elevated).”

Read More