Articles related to Collateralized Loan Obligations
Michael Pento - Delta Global Advisors
Four Percent 10-year Note Yield Will Be a Floor No...
The two most important factors in determining the level of sovereign bond yields are the credit and inflation risks extant within a nation. When determining a country’s ability to service its debt investors must analyze not only the absolute debt level, but also the ratios of debt and deficits to GDP. In addition, the current rate of inflation must also be viewed within the context of debt in order to make an accurate assumption as to the level of future inflation. When analyzing historical meas
Wednesday, February 21, 2018
Michael Pento - Delta Global Advisors
Record Bond and Stock Prices Sending the Same Message
The S&P 500 is trading near an all-time record high. But investors should not take this as the all clear signal. According to most indicators, the market is now more overvalued than ever before. The Cyclically Adjusted Price to Earnings Ratio analyzes the value of the S&P 500 Index with the 10-year average of "real" (inflation-adjusted) earnings as the denominator to determine if the market as a whole is overvalued or undervalued. Today this ratio sits at 26.73, close to the short-term
Tuesday, July 19, 2016
Gordon Long - Market Analytics
That's Just What We Need Journalists in the US to do; 'Excuse Me Mr.
FRA Co-founder Gordon T. Long is joined by Mish Shedlock in discussing the rigging of gold and silver by Deutsche Bank and the reliability of so called "casino banks" and the state of global banking institutions. Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. He is also a contributing "professo
Friday, April 22, 2016
John Rubino - Dollar Collapse
Earnings Actuall Now Matter or Are They Too Bad To Ignore
Special Guest Host: John Rubino, Author & Publisher of With John Rubino & Gordon T Long Published 04-19-16 32 Minute VIDEO Bank profits are in trouble!. Don't be fooled by the "beat analyst estimates" charade, because that is exactly what it is. First quarter bank earnings can only be described as an unmitigated disaster. With the aid of 24 charts, John Rubino and Gordon T Long discuss what they see in this 32 minute video, what is important to be aware of and what is
Wednesday, April 20, 2016
James Howard Kunstler
  The Elephant Cometh 
The elephant’s not even in the room, which is why the 2016 election campaign is such a soap opera. The elephant outside the room is named Discontinuity. That’s perhaps an intimidating word, but it is exactly what the USA is in for. It means that a lot of familiar things come to an end, stop, don’t work the way they are supposed to — beginning, manifestly, with the election process now underway in all its unprecedented bizarreness. One reason it’s
Monday, April 18, 2016
Wolf Richter
Peak Negative-Interest-Rate Absurdity Hilarity Ensues
Among the goodies: “reverse Yankee” landmines. When a central bank like the ECB imposes negative interest rates along with QE on its bailiwick, funny things start to happen. Investors become so eager to get any kind of visible yield that they will do the craziest things. They’re now chasing €3 billion of 50-year bonds that the French government placed today. The yield? 1.916%. These 50-year bonds are bought by institutional investors who, in normal times, would have been institutionalized. The i
Wednesday, April 13, 2016
Wolf Richter
Super-Luxury Homes Hit by End of Wall Street “Wealth Effect”
“We won’t see this again until 2021.” This had to happen. Now we’re getting reports that in the Hamptons, on Long Island’s east end, where Wall Street’s richest hobnob over the summer, home prices at the very top, after a phenomenal boom, are getting crushed. What’s getting blamed? The crummy performance of the markets last year. The average price in 2015 of the ten most expensive homes sold in the area has crashed 20% from a year earlier – to a measly $35.5 million. After soaring a mind-bending
Saturday, March 19, 2016
Michael Pento - Delta Global Advisors
Junk Rhymes with Subprime
On December 16th 2008, in what Ben Bernanke averred took a tremendous amount of "moral courage", the Federal Reserve officially arrived at its Zero Interest Rate Policy. ZIRP was a huge win for borrowers because it drove down the carrying cost of debt to historic lows. Unfortunately, savers didn't fare as well. Those frantic savers were forced to reach for yield far out along the risk curve. And an obliging Wall Street issued over $1 trillion in new junk bonds at the lowest spreads to
Monday, January 11, 2016
Wolf Richter
Let it Blow Up in Their Faces, Rather than in Our Faces
What gets stuffed into the Wall-Street sausage maker on the American side are dollar-denominated risky “leveraged loans” issued by over-indebted junk-rated companies, sliced and diced and lumped into Collateralized Loan Obligations that are then peppered with derivatives to hedge against currency fluctuations. What comes out of the sausage maker on the Japanese side are plump-looking, yen-denominated, highly rated bonds. Blame the Bank of Japan. Where there’s enough demand, there will be supply.
Sunday, April 19, 2015
Bob Hoye - Institutional Advisors
Positive Rotation Into May
Stock Markets On this week's release of NYSE Margin Debt, Business Insider headlined "Traders are betting on stocks with tons of borrowed money". As noted on our last review, the pattern has been a compulsive peak in margin and a correction in the amount and the stock market. Then the peak for the stock market would be set on the secondary h
Saturday, April 11, 2015
Michael Pento - Delta Global Advisors
The World Has Become Obdurate
There is a perfect word that describes the current condition of governments and consumers around the world today. The word is obdurate, and it means to be stubbornly persistent in wrongdoing. The word comes to mind when witnessing the renewed enthusiasm of central banks to re-inflate old asset bubbles and to endlessly debase their currencies with the misguided belief that inflation will engender sustainable economic growth. In the case of the Fed, it has so far to date made at least th
Monday, December 1, 2014
Michael Pento - Delta Global Advisors
Doves Don't Know History 
A wise saying goes like this; "Those who do not remember history are condemned to repeat it." So ask yourself; what is the fate of those who seem to have absolutely no recollection of events that happened just a few years ago? We are nearing the end of 2014, and to the debt markets, it is almost as if the 2008 economic collapse never happened. It appears that borrowers and lenders are suffering from a severe case of collective amnesia. Yes, consumer debt levels took a slight breather i
Monday, September 22, 2014
Bob Hoye - Institutional Advisors
Fed Dream Team
The following is part of Pivotal Events that was published for our subscribers July 10, 2014. Signs Of The Times "The first half of the year is off to the best start since 2000 for U.S. IPOs." - Fox Business, June 27 "There have been 20 merger deals valued at more than $10 billion this year, the biggest since the first half of 2007." - Wall Street Journal, June 30 "As investors scour the landscape for income, the first half of the year saw record amounts of
Thursday, July 17, 2014
James Howard Kunstler
  Reality Optional Economics 
 The total tonnage of economic malarkey being shoveled over the American public these days would make the late Dr. Joseph Goebbels (Nazi Minister of “Public Enlightenment and Propaganda”) turn green in his grave with envy. It’s a staggering phenomenon because little about it is conspiratorial; rather, it’s the consensual expression of a public that wants desperately to believe things
Thursday, July 10, 2014
Bob Hoye - Institutional Advisors
Speculative Exhaustion
The following is part of Pivotal Events that was published for our subscribers April 17, 2014. Signs Of The Times "A Major Demographic Tailwind Is Coming That Could Make The U.S. Boom For Years" - Business Insider, April 8 "The conditions for a bad market just don't exist. You can throw a dart at the market and about anything you hit is gonna go up the next six months." - Bill Miller, former Chairman, Legg Mason, CNBC, April 9 "Chronic Deflation Delayed"
Thursday, April 24, 2014
Andy Sutton
The Great Taper Caper 
My Two CentsBy Andy SuttonLet’s do a little flashback this week and then look at some things and try to make some sense of what happened yesterday as the Great Taper Caper unfolds. We go back to March 3rd, 2009. Ben Bernanke was in front of Congress. He was allegedly under oath. He was asked directly by Senator Bernie Sanders this important question: “Will you tell the American people to whom you lent $2.2 trillion of their dollars?” Bernanke gave a one-word answer – “No”. There are a couple of
Saturday, December 21, 2013
Philippe Herlin - GoldBroker
Bubbles Everywhere
By Philippe Herlin - Researcher in finance / Contributor to Are we witnessing the emergence of bubbles everywhere, or isn’t the whole thing becoming a gigantic bubble? All financial assets are going up at the same time, whether it be stocks, sovereign debts, or corporate bonds! And the issuers that are considered low-risk ones, like the USA or Germany for bonds, or blue chip companies, offer very low yields, even negative ones. This results in investors looking for yield on ris
Thursday, May 16, 2013
Bob Hoye - Institutional Advisors
  No Persuasive Evidence of Financial Instability
The following is part of Pivotal Events that was published for our subscribers March 14, 2013. Signs Of The Times "Disposable income, or the money left over after taxes, plunged 4 percent, the biggest plunge since monthly records began in 1959." - Bloomberg, March 1 "The riskiest U.S. companies are tapping institutional investors at the fastest pace ever." - Bloomberg, March 1 "U.K. Manufacturing unexpectedly shrank in February as new orders plunged." - Blo
Friday, March 22, 2013
Gordon Long - Market Analytics
Monetary Malpractice: Deceptions, Distortions and Delusions
The Hippocratic Oath is an oath taken by physicians swearing to practice medicine ethically, honestly and above all, to do no harm to the patient. Unelected central bankers do not take such an oath. They do however swear allegiance to the Constitution. On February 6, 2006, Ben Bernanke took an oath to the Constitution at his swearing-in ceremony as Chairman of the Board of Governors of the Federal Reserve System. The significance of this is that as a federal officer, despite being th
Wednesday, December 26, 2012
John Rubino - Dollar Collapse
Fed Policy Is Working - Moral Hazard Is Back
A near-death experience isn't something one gets over right away.So it's no surprise that the US leveraged speculating community was a tad more cautious than usual for a while.Real estate investors, for instance, still bought houses, but only on very favorable terms where rental income would clearly exceed expenses.
Thursday, October 4, 2012