The deletion of “dollar” capacity in money dealing globally is not just a theoretical impugning upon asset prices alone. Corporate debt issuance has been obviously provoked to an increasingly smaller state. The numbers are starting to become serious, which may account for at least part of the economic misfortune that the Fed desperately wants the world to ignore. Where swap [...]
As stocks selloff today, so too does the junk bubble. I think the implication traces back to the Asian “dollar” and the unsteady state of wholesale finance in that part of the eurodollar system (while contemplating the potential for mitosis to have occurred there at some point in the recent past, likely 2012). Junk prices not only remain depressed but [...]
Gold is down again today but the yen up past 119 toward 118.5; and the real crashing under 3.8 now. In other words, as yesterday, the “dollar” market is somewhat mixed. That view, however, is somewhat deceptive as the absence of further “dollar” pressure does not equate to renewed optimism and a serious move back near funding normalcy. A stroll [...]
The energy sector may account for a good proportion of risky credit, but that doesn’t necessarily mean that all negative price action in high yield and junk is entirely energy. While certain markets have regained comfort with the world’s various potentials, the outer echelons of US credit remain on alert. That is typically the pattern of an impending inflection in [...]
The immediate response to the December taper was to sell off in dollar funding markets, but overall the shape of the yield curve has been decidedly toward flattening. That started conspicuously on November 20 (with the Fed’s sudden POMO interest in the 10-year) and has only increased in the weeks since taper. We will have to see about today’s additional [...]
We all know what happens once the horses are out of the barn (or the toothpaste is out of the tube, if you prefer). There are certainly times when events reshape our perceptions in a lasting or even permanent manner, despite all efforts to re-assure nothing has changed. That applies to the taper episode when looking at it in full, [...]
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