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Subprime Auto Loans: the Next Shoe to Drop?
Subprime Auto Loans: the Next Shoe to Drop? Booming auto sales have more to do with low rates and easy financing than they do with the urge to buy a new vehicle. In the last few years, car buyers have borrowed nearly $1 trillion to finance new and used autos. Unfortunately, much of that money was lent to borrowers who have less-than-perfect credit and […]
Venezuela Runs Out Of Electricity, Will Shut Down For A Week, El Nino Blamed
Venezuela Runs Out Of Electricity, Will Shut Down For A Week, El Nino Blamed When last we checked in on our favorite socialist paradise, Venezuela, President Nicolas Maduro’s opponents “had gone crazy.” Or at least that’s how Maduro described the situation in a “thundering” speech to supporters at what he called an “anti-imperialist” rally in […]
The Liquidity Endgame Begins: Whiting’s Revolver Cut By $1.2 Billion As Banks Start Slashing Credit Lines
The Liquidity Endgame Begins: Whiting’s Revolver Cut By $1.2 Billion As Banks Start Slashing Credit Lines Earlier today we reminded readers about the circular (and why note fraudulent conveyance) scheme hatched by JPMorgan to reduce its secured loan exposure to Weatherford, when just two weeks ago none other than JPM underwrote an WFT equity offering in which […]
China Proposes Unprecedented Nationalization Of Insolvent Companies: Banks Will Equitize Non-Performing Loans
China Proposes Unprecedented Nationalization Of Insolvent Companies: Banks Will Equitize Non-Performing Loans In what may be the biggest news of the day, and certainly with far greater implications than whatever Mario Draghi will announce in a few hours when we will again witness the ECB doing not “whatever it takes” but “whatever it can do”, moments ago Reuters […]
The Oil Short Squeeze Explained: Why Banks Are Aggressively Propping Up Energy Stocks
The Oil Short Squeeze Explained: Why Banks Are Aggressively Propping Up Energy Stocks Last week, during the peak of the commodity short squeeze, we pointed out how this default cycle is shaping up to be vastly different from previous one: recovery rates for both secured and unsecured debts are at record low levels. More importantly, we noted […]
Which Countries Have The Highest Default Risk: A Global CDS Heatmap
Which Countries Have The Highest Default Risk: A Global CDS Heatmap Sweden beats USA and Germany as the least likely to default on its bonds but at the other end of the global sovereign risk spectrum lie two socialist utopias – Venezuela (CDS just shy of 6000bps) and Greece (CDS around 1800bps) are the nations most likely to […]
Satyajit Das: This Is Why You Can Expect Another Global Stock Market Meltdown
Satyajit Das: This Is Why You Can Expect Another Global Stock Market Meltdown Authored by Satyajit Das’, author of the new book “The Age Of Stagnation” (via MarketWatch), The mispricing of assets across world markets has reached epidemic proportions. Stock prices have made strong advances over the past several years, yet market analysts see further gains, arguing that […]
Auto loan delinquency spikes in Alberta, Saskatchewan
Auto loan delinquency spikes in Alberta, Saskatchewan Credit agency TransUnion points to non-mortgage debt defaults in oil-producing provinces Pickup truck sales have grown rapidly in the past five years, but with job losses in Alberta and Saskatchewan, the debt from auto loans is hanging over some consumers. There has been enormous sales growth of pickup trucks […]
The Banking Turmoil Spreads—-Massive Banking Crisis Brewing In Singapore
The Banking Turmoil Spreads—-Massive Banking Crisis Brewing In Singapore By Singapore Business Review The three biggest banks are losing capital. A crisis of staggering proportions is looming in China, and tiny Singapore will be caught right in the middle of the storm once the disaster finally erupts. Speaking at the annual Barron’s roundtable, Swiss billionaire […]
Where Deflation Comes From
Where Deflation Comes From Financial bubbles blown on the back of massive amounts of debt, of necessity lead to debt deflation (it’s just entropy, really). Fighting this is futile, and grossly costly to boot. The only sensible thing to do is to guide the process as best you can and try to minimize the damage, […]
Horror Stories Emerge After A Cursory Look At Chinese Corporate Leverage
Horror Stories Emerge After A Cursory Look At Chinese Corporate Leverage By now it is common knowledge that China has a major debt problem at the macro level, one which may be even bigger than expected because according to at least one analysis by Rabobank, China’s most recent debt has soared from the infamous McKinsey level of […]
Meet China’s Latest $1.8 Trillion “Problem”
Meet China’s Latest $1.8 Trillion “Problem” Last summer we outlined how Chinese banks obscure trillions in credit risk. The powers that be in Beijing aren’t particularly keen on allowing the banking sector to report “real” data on souring loans – especially given the fragile state of the country’s economy. In some cases, the Politburo will pressure banks […]
Puerto Rico “Generously” Offers To Repay 54 Cents On The Dollar To Creditors Owed $70 Billion
Puerto Rico “Generously” Offers To Repay 54 Cents On The Dollar To Creditors Owed $70 Billion Height Securities’ Daniel Hanson is “deeply skeptical” about the viability of Puerto Rico’s proposal for restructuring the island’s $70 billion in debt. Hanson, in a note out late last week, said Governor Alejandro Padilla was “significantly unlikely” to present […]
