<Click on chart for larger image> Comment The blue line above shows crude oil inventories are still rising. That means we still produce too much crude oil. Producers have no choice, they borrowed too much in the high yield market and it is either pump as fast as you can or go bankrupt. They are… Continue reading Oil’s Supply/Demand
The Economist – Exit, pursued by bear IT IS more than two weeks since the Federal Reserve raised interest rates for the first time in over nine years, and the world has not (yet) ended. But it is too soon to celebrate. Several central banks have tried to lift rates in recent years after long… Continue reading Raising Rates Off Zero
Comment The following chart is presented with comment: <Click on graphic for larger image>
<Click on graphic for larger image> Arbor Quantitative Analytics – US Credit – Divergence Updates Extreme divergences in relative performance between sectors are beginning to resolve. Though energy and materials sectors continue to see declines, the moderated pace of decline and stall in other sectors’ gains have closed the gap in our measure of relative… Continue reading Credit
Bloomberg Business – Dancing With Wolves: Why Chinese Traders Love Manipulated Stocks The way Liu Xiaozhen tells it, the only way to truly understand China’s stock market is by learning the tactics of traders who routinely manipulate it. “We need to dance with the wolves,” says Liu, the chief executive officer at Qingdao Langwang Investment… Continue reading Chinese Stocks
Bloomberg.com – Bommer Is Returning Money From Hedge Fund SAB After 17 Years SAB Capital investors to get most money before mid-January New York-based fund had $1.1 billion in assets at end of 2014 SAB Capital will return most money before mid January, Bommer said in an investor letter Tuesday, a copy of which was… Continue reading Another Day, Another Hedge Fund Closing
<Click on graphic for larger image> <Click on graphic for larger image> The Financial Times – Fund failure exacerbates liquidity fears Corporate debt has been one of the slam-dunk investments of the post-financial crisis era, handing investors juicy and stable returns. As a result, billions of dollars have gushed into the market. But some fear… Continue reading Liquidity Fears
<Click on graphic for larger image> Bloomberg Business – Secret Behind Junk Funds That Made Money in 2015: No Heroics Don’t be a hero. That’s the strategy the most successful high-yield money managers of 2015 attribute to their success. As junk bonds tanked, defaults rose and Third Avenue Management LLC shocked the market by temporarily… Continue reading High Yield Funds
<Click on graphic for larger image> The Wall Street Journal – Divergence Between Fed, Other Central Banks to Test Global Economy U.S. prepares to keep raising interest rates while Europe, Japan are still easing; currencies and trade could face turbulence The global economy will be tested by an unusual divergence among the world’s leading central… Continue reading 2016 Outlook
<Click on graphic for larger image> The Guardian – Recession, retrenchment, revolution? Impact of low crude prices on oil powers In an unprecedented year for the oil business, each of the major producers has its own problems. How will they react? A glut of oil, the demise of Opec and weakening global demand combined to… Continue reading The Countries Most Affected By Low Oil Prices
<Click on chart for larger image> The Wall Street Journal – Saudi Arabia Won’t Change Oil Production Top oil exporter Saudi Arabia won’t change its current reliable production policy and is ready to meet any additional demand from its customers, the kingdom’s oil minister Ali al-Naimi said Wednesday. “It is a reliable policy and we… Continue reading Oil Production In Saudi Arabia Not Changing