Reuters.com – Billionaire Lasry backs junk bond fund hit with heavy redemptions Billionaire hedge fund manager Marc Lasry on Monday backed a junk bond mutual fund hemorrhaging assets at his Avenue Capital Group as jittery investors exit high-yield bonds amid a market rout. Investors have taken note that Lasry’s $884 million Avenue Credit Strategies Fund… Continue reading Is This The Next Fund To Gate?
<Click of graphic for larger image> Forbes – High Yield Bond, Leveraged Loan Issuance Stalls As Junk Woes Roil Markets Issuance in the U.S. leveraged finance market all but shut down last week as junk bond players watched a highly visible fund liquidate and leveraged loan players remained largely on the sidelines, with one eye… Continue reading Leveraged Loan Issuance Stalls
The Wall Street Journal – SEC Reviewing Third Avenue’s Move to Bar Redemptions From Fund Agency says it’s on site and closely monitoring to ensure ‘orderly process’ It is unknown if Third Avenue’s closure of its fund will have strong ripple effects. Securities experts said one high-yield fund’s decision essentially to stop redemptions is unlikely… Continue reading The SEC Is On The Case!
<Click on chart for larger image> The Wall Street Journal – Natural Gas Sinks to 14-Year Low Warm weather continues to reduce heating demand while supplies rise; energy companies’ stocks and bonds are slammed Natural-gas prices plunged to a 14-year low, as the warmest start to winter on record in the U.S. saps demand for… Continue reading Natural Gas & Copper Fall
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Bloomberg Business – Third Avenue Blocks Redemptions From Credit Fund Amid Losses As signs of stress mount in credit markets, a $788 million mutual fund is blocking clients from pulling their money so its holdings can be liquidated in an orderly fashion. Martin Whitman’s Third Avenue Management said it put some of the assets in… Continue reading Stress In The High Yield Markets
Bloomberg.com – Investors See More Carnage Amid Third Avenue Contagion Risk Minerd says 15% of high-yield funds may face high withdrawals “There’s never just one cockroach,” says Jeffrey Gundlach Top bond investors are predicting more carnage for high-yield funds amid a market rout that forced a Third Avenue Management mutual fund last week to freeze… Continue reading More Concern Of Credit Meltdown
<Click on chart for larger image> Bloomberg.com – Mohamed El-Erian: Market Instability Won’t Deter a Fed Rate Hike Last week’s volatility in the markets, highlighted by further implosions in the high-yield and energy segments, won’t deter the Federal Reserve from raising interest rates on Wednesday. But the turmoil complicates the central bank’s communications challenge, particularly… Continue reading Not Everyone Thinks Third Avenue Liquidation Matters
<Click on graphic for larger image> Bloomberg.com – Crude Falls Below $35 per Barrel in New York for First Time Since 2009 Oil fell below $35 a barrel in New York for the first time since 2009 as Iran reiterated its pledge to boost crude exports, bolstering speculation OPEC members will exacerbate the global oversupply.… Continue reading Crude’s Slide Continues
<Click on graphic for larger image> Bloomberg.com – China’s New Yuan Index: Here’s What the Market Needs to Know A new currency index in China is causing a stir as policy makers seek to refocus the market’s attention away from the yuan’s moves versus the dollar and instead compare performance against a wider selection of… Continue reading The New & Improved Yuan
<Click on chart for larger image> Barron’s – Merger Mania Could Spell Trouble for Stocks Peaks in deal activity often coincide with peaks in the S&P 500. Presiding over the portfolios of Seabreeze Partners Management in the warm and sunny clime of Palm Beach, Kass is spying peaks everywhere. To a long list that includes… Continue reading M&A Activity
<Click on graphic for larger image> The Wall Street Journal – Jon Hilsenrath: Fed Officials Worry Interest Rates Will Go Up, Only to Come Back Down More than half of economists polled predict federal-funds rate back near zero within next five years Federal Reserve officials are likely to raise their benchmark short-term interest rate from… Continue reading Falling Rates