What’s The Most Expensive Asset This Week?

Paging 2 Chainz…

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‘They Bought It All – Literally’

To be sure, traders and investors were left to cope with conflicting signals in the just-concluded trading week. For one thing, you never want to be completely out of risk assets in an environment where the central bank put is still in place. Underscoring that was Thursday’s ECB presser where Mario Draghi made a concerted…

Fed QE’s Dramatic Effect On Credit Markets In One Annotated Chart

Global central banks certainly haven’t succeeded in creating the type of robust recovery they ostensibly set out to facilitate in the wake of the crisis. At the very least, the coordinated effort in monetary insanity has taken a lot longer to “work” than its architects anticipated and that’s in no small part attributable to the…

With Corporate Debt-To-GDP At An All-Time High, The Defaults Are Coming…

I have absolutely no idea how any of that is sustainable and/or realistic. 

Riders On The Storm.

Right, so the storm wasn’t supposed to come until next month.

More ‘Junk’ Talk

Dispersion is the trend.

The Risks For This Asset Class Are Asymmetrically Skewed To The Downside

Given that the weaker dollar and a slow pace of policy normalization are key pillars of support for emerging markets, and given that the same thing that’s weighing on the dollar (Donald Trump) is also behind fleeting risk-off moves, it makes sense that EM would outperform USD HY. But…

Trading The White Moose With Carl Icahn

“Central Banks are printing money out of thin air and buying stocks with it. Stop a moment and really take that in.”

The Dirty Little Secret Behind The EM Rally…

“However, below the surface”…

The Good Looking Ones Are Always Bad News

“Why not just short the actual security that will cause the other security to decline?”

Borrowed Time.

Tick, tock.

America The ‘Financial Prozac Nation’

” It’s almost like investors are citizens of some financial Prozac Nation, emotions suppressed and buying all kinds of assets regardless of the perceived risk (or return).”

Requiem For A Crisis.

Kind of makes you think…

Bad News: The Buyback Scheme Has Reached A Limit

“Perhaps over-leveraged US companies have finally reached a limit.”

Markets Can’t Escape Super-Scary ‘Shadow Of Negatives’

“To my mind, the facts still lean significantly bearish and suggest the phase of broad risk aversion isn’t yet done.”