The Liquidity Endgame Begins: Whiting’s Revolver Cut By $1.2 Billion As Banks Start Slashing Credit Lines
Earlier 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 it sold equity in the company, and which proceeds were promptly used by the company to repay […]
EUR/USD Forex Signal For March 15, 2016
EUR/USD Signal Update Yesterday’s signals were not triggered. Today’s EUR/USD Signals Risk 0.75% Trades must be made between 8am and 5pm London time today only. Long Trade 1 * Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.1068 and 1.1035. * Put […]
Euro Risks Falling To 1.1020
Yesterday’s Trading: The USD on Monday closed up against the EUR. The euro/dollar was down against Friday’s 1.1079 minimum. Trading volumes are still low on the market at participants lie in wait for central bank announcements. Market Expectations: A two-day FOMC meeting begins on Tuesday. No one expects the Fed to change their rates this […]
Having Killed Their Equity Market, China Unleashes “Tobin Tax” For FX Market
In September last year, Chinese regulators stepped on the throat of a ‘fair’ market in equity futures trading and for all intent and purpose killed the Chinese equity market. Tonight – after 2 days of Yuan weakness – having warned everyon from Soros to Kyle Bass that “betting against the Yuan can’t possibly work,” The PBOC […]
The Search For Cause
If China is most representative of the current state of the “dollar” economy, Brazil is surely most representative of its worst case. The country’s economy has been like China in slowing down steadily over the past few years, but unlike China it has descended already into a nightmarish level of distress. In other words, Brazil already has […]
Reader Asks: Why Not Keep Cash Instead Of Parking Euros For Negative Returns?
In response to Financial Wonderland: Reader Questions on Negative Rates and Money Heaven, several readers asked “Why do banks park funds at the ECB for negative returns instead if simply keeping cash?” That’s a question I meant to answer in the above Financial Wonderland link, but let’s answer it now. The two applicable answers are insurance, […]
Zero-Hour For The Precious Metals
Just as the world was breathing a massive and collective sigh of relief that a new bull market in gold and silver had arrived with all the pomp and pageantry of a Royal Wedding, the Barbarians climbed the walls and are now very close to razing the palace, says precious metals expert Michael Ballanger. Yesterday […]
Chinese Industrial Output Grows
We live in a world of spin where any fact, figure, opinion or statement can be altered to appeal to what the Spin Doctor thinks their audience wants to hear. Growth in the Chinese economy has been phenomenal since the Chinese Communist party started its flirtation with capitalism. It is easy to forget that China […]
The One Bank Targets India’s Silver
For several years, readers have seen a steady stream of articles which chronicled and explained the One Bank’s multiple attempts to attack the mammoth gold market of India. These attempts have ranged from the diabolical to the merely comical. Indeed, one of the “comical” aspects as these financial Wile E. Coyotes continue targeting India’s gold market, and […]
Fixed Income Review
Bond markets have made some dramatic moves over the last few weeks and I thought it an opportune time to review. Credit spreads have narrowed considerably over the last few weeks as risk takers have re-entered the markets. High yield, IG corporates and emerging market bonds have all enjoyed significant rallies. It is our judgement […]
