Fallen Angels And Draghi’s Steinhoff Demons

“It is not unusual that losses may be happening.”


Here Are A Bunch Of Scary Charts For Halloween.

“The only thing to fear is fear itself.”

Bubbles, Bubbles, Everywhere…

“Bubbles, bubbles, every where, Nor any one to pop.”

‘Pigs Just Might Fly’ In A World Where Spreads Are This Out Of Touch With Leverage

“However, by 2008’s final quarter, corporate debt reached 523% of internal funds and the high-yield EDF soared to 10.33%. At the same time, a mild recession was turning into a global calamity.”

‘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…

More ‘Junk’ Talk

Dispersion is the trend.

To Infinity And Beyond: Blue-Chip Debt Sales Top $1 Trillion Faster Than Ever

I sincerely hope everyone who’s still plowing money into corporate credit has a good handle on what it is they’re doing because investment grade corporate debt issuance is running at a record pace, and just topped $1 trillion faster than any year in history.

Requiem For A Crisis.

Kind of makes you think…

A Record Percentage Of BofAML Clients Now Expect A Credit Selloff

Listen, here’s the thing: at some point, credit markets are going to wake up. Now I’ll confess I have no idea when that’s going to be and if the last 13 months have taught us anything, it’s the DM central bank liquidity tsunami is capable of keeping spreads near their post-crisis tights even in the…

Stocks Fly To Records, Global Risk Rally Continues As Bad Data, ‘Good’ Yellen Keep Hope Alive

The message is loud and fucking clear: the vol. seller’s/ carry trader’s paradise and the risk party that’s made every homegamer with some SPY and QQQ look like a guru for the past eight years depends on DM central bankers staying some modicum of dovish. And on that score, bad data helps.

That’s Not Low Volatility, THIS Is Low Volatility…

We both agreed that while suppressed equity vol. grabs all the headlines, it is in fact credit’s Teflon performance that wins the John Gotti prize for “most bulletproof asset class.” 

Chart Of The Day: Asset Prices In The Trump Era

See if you can spot what’s still hanging on for dear life at record highs/tights despite lackluster incoming data and central bank tightening…

Goldman Presents: “The Good, The Less Good, And The Ugly”

“Against this friendly backdrop in Europe, fundamentals remain weaker in North America despite the recent signs of improvement since 1Q 2016. Relative to the peak in credit quality reached at the end of 2010, median net leverage ratios remain significantly higher while interest coverage ratios are also lower.”

“Political Immunity” And Markets

“Technical factors and central bank liquidity have allowed markets to suspend disbelief.”