Explanation Of Corporate Debt & Leveraged Loans

There has been a huge increase in corporate debt to record levels, but the cost to service the debt is manageable because interest rates are low and investors are extremely sanguine. As you can see from the chart below, the spread between junk bonds and investment grade bonds is the lowest of this business cycle. This means that…

Can Options-Derived Levels Catch AUD/USD On Jobs Data, Fed Speak?

The Australian Dollar could be in for some volatile price action in the coming days with fundamentals pointing to potential losses while technicals say otherwise. In either instance, the pair may find itself being supported or restrained by near-term options-derived levels. Looking at the table below, AUD/USD one-day implied volatility is the highest of its major peers at 12.24%….

Sensex Opens On A Negative Note; Banking Stocks Witness Selling

Asian shares are trading on a negative note today. The Nikkei 225 is down 0.2% while the Hang Seng is down 0.1%. The Shanghai Composite is trading down by 0.2%. Back home, India share markets opened the day on a negative note. The BSE Sensex is trading down by 225 points while the NSE Nifty is trading down by 66 points. The BSE Mid Cap index is trading…

Silver’s Long Consolidation Looks Like A Launching Pad

The primary trend for gold and silver over the past year and a half has been the absence of any clear direction in prices. Metals markets have been stuck in consolidation mode. Yet for silver, in particular, that consolidation has formed a clear and potentially powerful pattern. The silver market’s consolidation has formed a symmetrical…

Subprime Chaos: The Auto Bubble Is Bursting And It’s Worse Than 2...

Last week, used car prices had their biggest drop since 2009 – directly after the financial market meltdown of 2008. And right now, the auto market is showing signs of incredible worry. Delinquent subprime auto-loans are higher than they were in the last recession. Look for yourself. . .      What’s interesting – and worrisome – is that consumers are…

5 Ultra Cheap PEG Stocks Value Investors Will Love

Value investing is gaining popularity by the day. The success of value investors like Warren Buffett further underscores this. Buffett believes that proper understanding of the “intrinsic value” of a stock makes the task easier. Yardsticks such as dividend yield, the ratio of price to earnings or to book value are the most common forms…

WTI/RBOB Drop After Another Surprise Crude Build

After clinging to the green all day, despite a strong dollar, WTI/RBOB slipped into the red after API reported a much bigger than expected (and surprise) crude build (+4.854mm vs -1.75mm exp). API Crude +4.845mm (-1.75mm exp) Cushing +62k (+550k exp) Gasoline -3.369mm Distillates -768k After drawing down last week, expectations were for crude draw…

Anchoring Globally Synchronized Growth, Or We Gave Up Long Ago?

January was the last month in which China’s National Bureau of Statistics (NBS) specifically mentioned Fixed Asset Investment (FAI) of state holding enterprises (or SOE’s). For the month of December 2017, the NBS reported accumulated growth (meaning for all of 2017) in this channel of 10.1%. Through FAI of SOE’s, Chinese authorities in early 2016…