Category Archives: Credit

COTD: Corporate Debt

No lack of supply/issuance in the corporate debt market.   No shortage of demand either. Lots of nuances in interpreting data, however.  First, much of debt going to financial engineering, i.e., stock buybacks.  Some of the supply is borrowing against capital … Continue reading

Posted in Bonds, Credit, Uncategorized | Tagged | Leave a comment

COTD: Venezuela Oil Production (t/bpd)

Ergo (among other things), this: There is some minimum threshold level of reserves most central banks will not cross and willresort to various policies to protect and ration foreign exchange reserves, including devaluation, import restrictions, capital controls, selective default, and … Continue reading

Posted in Credit, Crude Oil, Uncategorized | Tagged , , | Leave a comment

The Lehman legacy: Lessons learned? – Economist

Five years on from the collapse of Lehman Brothers and the advent of the global debt crisis, our correspondents assess whether the world economy is sufficiently protected from future shocks.   – The Economist (click here if video is not observable)

Posted in Banking, Credit | Tagged , , | Leave a comment

Capitano Crunch: Europe’s Collapsing Monetary Aggregates

Here are some great pictures from Credit Suisse illustrating what’s happening in the European monetary sector.  The monetary aggregates have been collapsing at a greater pace than 2008/09  as banks have been cutting credit and shrinking their balance sheets to … Continue reading

Posted in Black Swan Watch, Credit, Euro, Monetary Policy, Policy, Sovereign Risk, State and Local Government | Tagged , , , | 4 Comments

China’s Deflating and ‘Eerily Similar’ Housing Bubble

Wow!  Check out this. In January we compared the U.S. and China stimulus, In the U.S., the central bank printed and created money through the expansion of its balance sheet.  In China, the government pressured the  banks to create money … Continue reading

Posted in Black Swan Watch, China, Commodities, Credit, Sovereign Debt, Sovereign Risk | Tagged | 2 Comments

The Biggest Bubble in History?

We are baffled by the analysis of the analyst community, some, of which, are not so analytical.  They say that  Europe’s fundamental problem is that it  has a central bank which is unwilling to monetize sizeable debt maturities which bondholders … Continue reading

Posted in Black Swan Watch, Bonds, BRICs, Budget Deficit, Commodities, Credit, Currency, Euro, Monetary Policy, PIIGS, Sovereign Risk, State and Local Government | Tagged , , , , , , , | 6 Comments

The Creeping and Coming Eurozone Credit Crunch

Here’s a very informative chart via Morgan Stanley showing the deterioration in the Eurozone’s key credit indicators.  Banks will no doubt sell assets, at least in part, as a way to meet their required capital targets. During the 1997 Asian … Continue reading

Posted in Black Swan Watch, Credit, Economics, Euro, Sovereign Debt, Sovereign Risk | Tagged , , | 1 Comment

Most Important Spread in the World

Given the bank recapitalization plan announced over the weekend,  the France national government may be on the hook to help recapitalize and backstop its banking system.  The markets will be full of noise in the next few days and we … Continue reading

Posted in Credit, Euro, Monetary Policy, Sovereign Debt, Sovereign Risk | Tagged , | 2 Comments

Belgium Waffles w/ Irish Coffee = No Free Brunch

Over the weekend we posted a chart illustrating how French bond yields are blowing out.  Zero Hedge posted the following chart today illustrating the Belgium – German yield spread has just hit a new high.  ZH has been spot on … Continue reading

Posted in Black Swan Watch, Bonds, Credit, Euro, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , | 1 Comment

Europe’s Stressed Out Banks

The Wall Street Journal reports Euro-zone banks’ overnight deposits at the ECB increased again last week “reflecting deepening distrust in interbank lending markets.”  The Journal writes, Overnight deposits Friday rose to €255.57 billion ($341.88 billion), surpassing Thursday’s 2011 high of … Continue reading

Posted in Black Swan Watch, Credit, Euro, Monetary Policy, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , | 4 Comments