I think it worth noting one more reason Yellen was out front yesterday. Not only is liquidity suffering still globally but that is having an immensely negative effect on asset prices, especially at the bubble points. The S&P/LSTA Leveraged Loan 100 had not been updated since last Friday, which suggested (to me) continued pricing difficulties in leveraged loans. The combination [...]
By most accounts the Asian “dollar” was quiet last night but now the “regular” eurodollar is in full form. That might suggest greater care with these terms as the yen appears to be in that latter mix despite geographically belonging to the former. For purposes of clarification, then, since Japanese banks were among the original sources of the eurodollar buildup [...]
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 [...]
While outward asset markets have clearly been upended by the implications (at long last) of the Fed not doing anything, the internals of the money/”dollar” markets are actually worse. I don’t know if it could be classified as another forming “dollar” wave, but it doesn’t look good from this vantage point heading into an uncertain weekend. In many ways, the [...]
The new week opens much the same as last week traded, with narrow ranges abounding in risky asset prices. From leveraged loans to junk debt, funding markets continue to run the correlations. From this “dollar” view, the lack of “buying” interest in the corporate bubble, bargain value or not, may more properly be understood as lack of “funding” interest. On [...]
The update to the S&P/LSTA Leveraged Loan Index was pretty much as expected following the interpretations I suggested Friday. Despite the alleviation of direct “dollar” pressure on liquidity subtracting from asset prices, there is a very distinct lack of enthusiasm to, at this point, rebid for margined assets or to pick up “bargains.” The index itself rebounded from a low [...]
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 [...]
Stocks aren’t quite as immune to financial disruption in the middle of 2015 as they had been previously. The last major, comprehensive selloff was also in tandem with “dollar” disorder back last October 15. This time, the motion was more erosion than “event”; at least until the past week. Just like crude oil, stocks lost their momentum back in early [...]
The S&P/LSTA Leveraged Loan 100 was updated this weekend through August 13, confirming that market values in those “liquid” names fell below the December 16 levels for the worst prices since before QE3. There isn’t any further information on the reasons for the delay, though revisions to the BofAML High Yield indices suggest an answer. On Friday, the CCC and [...]
By the behavior of the Chinese yuan itself, given the financial size here, we can readily assume that any “dollar” problem that is clearly causing the PBOC’s actions are sizable. Currencies throughout Asia are being roiled not unlike 1997 and oil prices sunk to a new “recovery” low. While that all suggests far away turmoil relevant only to those foreign [...]
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