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Deutsche Warns Of Imminent “Domino Impact” For Stocks From Bond Carnage, Soaring Dollar

Deutsche Warns Of Imminent “Domino Impact” For Stocks From Bond Carnage, Soaring Dollar One of the more confounding aspects of the record bond selloff experienced in the past few days, is that it not only left broader equity indices unscathed, but took place as the Dow Jones hit a new record high. This, as Goldman […]

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Why According To One Bank, Massive Central Bank Intervention Is Imminent

Why According To One Bank, Massive Central Bank Intervention Is Imminent Any time the relative performance of global financials to US Treasuries has stumbled as far as it has, as shown in the chart below, it has meant one thing – a major central bank intervention was imminent.  At least that’s the interpretation of BofA’s Michael […]

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This is Why Junk Bonds Will Sink Stocks: Moody’s

This is Why Junk Bonds Will Sink Stocks: Moody’s “Some very critical things are hidden.” After the white-knuckle sell-off of global equities that was finally punctuated by a rally late last week, everyone wants to know: Was this the bottom for stocks? And now Moody’s weighs in with an unwelcome warning. If you want to […]

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Dying Petrodollar Ripples Through Markets As Asset Managers Bemoan Loss Of Saudi Bid

Dying Petrodollar Ripples Through Markets As Asset Managers Bemoan Loss Of Saudi Bid One of the key things to understand about China’s liquidation of hundreds of billions in US paper is that far from being a country-specific phenomenon, it actually marks the continuation of something that’s been taking place in other emerging markets for some […]

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The Next Financial Crisis Won’t be Like the Last One

The Next Financial Crisis Won’t be Like the Last One It seems increasingly likely the next Global Financial Meltdown will arise in the FX/currency markets. Central banks are like generals: they tend to fight the last war. The Great Financial meltdown of 2008 was centered in too big to fail, too big to jailtransnational banks and other […]

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Meet QT; QE’s Evil Twin

Meet QT; QE’s Evil Twin There is a growing sense across the financial spectrum that the world is about to turn some type of economic page. Unfortunately no one in the mainstream is too sure what the last chapter was about, and fewer still have any clue as to what the next chapter will bring. […]

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Will the Fed Have to Save Emerging Markets with QE4?

Will the Fed Have to Save Emerging Markets with QE4? The risk-off tide is rising, and sand castles of QE will only hold the tide back for a brief period of apparent calm. A funny thing happened on the way to permanently expanding global markets: unintended consequences. Borrowing cheap, abundant U.S. dollars seemed like a good […]

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The “Great Accumulation” Is Over: The Biggest Risk Facing The World’s Central Banks Has Arrived

The “Great Accumulation” Is Over: The Biggest Risk Facing The World’s Central Banks Has Arrived To be sure, there’s been no shortage of media coverage regarding the collapse in crude prices that’s unfolded over the course of the past year. Similarly, it’s no secret that commodity prices in general are sitting near their lowest levels […]

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The implications of a reduction of Chinese holdings of US government debt

The implications of a reduction of Chinese holdings of US government debt Dear Readers, Below is my response to a reader of my blog, who asked about the implications of China reducing its holdings of US treasury debt. Pat Barron Dear Lawrence, I think that in the simplest terms, China is exiting the market for […]

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The Great Unwind, China Begins Dumping Treasuries

The Great Unwind, China Begins Dumping Treasuries charts from: http://www.globalpost.com/dispatch/news/regions/americas/united-states/150204/chart-us-foreign-debt Behind the scenes is an event unfolding that has the market shaking in its boots. Yet you don’t hear this discussed by the mainstream media, let alone investment bankers. The reason? It is an event that has been talked about throughout China’s rise to prominence. It […]

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It’s Official: China Confirms It Has Begun Liquidating Treasuries, Warns Washington

It’s Official: China Confirms It Has Begun Liquidating Treasuries, Warns Washington On Tuesday evening, we asked what would happen if emerging markets joined China in dumping US Treasurys. For months we’ve documented the PBoC’s liquidation of its vast stack of US paper. Back in July for instance, we noted that China had dumped a record $143 billion in US […]

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If History Is Any Indication, Junk Bonds And Copper Are Telling Us Exactly Where Stocks Are Heading Next

If History Is Any Indication, Junk Bonds And Copper Are Telling Us Exactly Where Stocks Are Heading Next Yields on the riskiest junk bonds are absolutely soaring and the price of copper just hit a fresh six year low.  To most people, those pieces of financial news are meaningless.  But if you understand history, and […]

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Riskiest End of the Junk Bond Market Just Blew Up

Riskiest End of the Junk Bond Market Just Blew Up You wouldn’t know by looking at the US Treasury market, which remained relatively sanguine this week, with only a little panic buying on Tuesday. So 10-year Treasuries ended the week near where they’d started it. But at the other end of the spectrum, the riskiest […]

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Banks Rig Treasury Market

Banks Rig Treasury Market Boston’s public sector pension fund accuses all of the biggest US banks  – the so-called “primary dealers” which transact directly with the United States Treasury Department and “have a special obligation to ensure the efficient function” of the American treasury bond market – of colluding to manipulate the $12.5 trillion U.S. Treasury market.  […]

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In Latest Market Rigging Scandal, Wall Street Now Sued For Treasury Market Manipulation

In Latest Market Rigging Scandal, Wall Street Now Sued For Treasury Market Manipulation “Defendants used electronic chatrooms, instant messaging, and other electronic and telephonic methods to exchange confidential customer information, coordinate trading strategies.” “Traders at some of these primary dealers talked with counterparts at other banks via online chatrooms and swapped gossip.” Sound familiar? Those […]

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