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Charts of the Week
High Yield Spreads Not Following Tighter Loan Standards
June 2, 2023
Worsening loan conditions have yet to send high-yield spreads wider. It is worth noting the index contains higher quality bonds than in past crises.
Charts of the Week
Tax Receipts Cover 70% of Federal Spending
June 2, 2023
Tax receipts only cover 70% of federal spending as net interest costs are projected to rise.
Charts of the Week
Which Companies Are Conducting Buybacks?
June 2, 2023
Buybacks offer companies a way to increase shareholder value without issuing a taxable dividend. Buybacks among the largest companies make sense given the large cash hoards they hold.
Charts of the Week
Comparing Global Inflation Rates
June 2, 2023
Between April 2021 and May 2022 U.S. inflation was the highest in the developed world thanks to massive stimulus. Thanks to the aggressive stance taken by the Federal Reserve, U.S. inflation is now falling faster than inflation in many other countries.
Charts of the Week
Nvidia Joins the Trillion Dollar Club
June 2, 2023
Nvidia has capitalized on the AI frenzy, joining a small club of companies worth more than $1 trillion.
Charts of the Week
Stablecoins Turn the Tables
June 2, 2023
Before May 2022, regulators worried that stablecoins posed a systemic risk to traditional financial markets, like Treasury bills. What if everyone lost confidence in stablecoins and moved at once to get out, causing their reserves to dump hundreds of billions of Treasury bills all at once. Now, traditional markets and their regulators, and the specter of defaulting Treasury bills (off the table until early 2025), pose a risk to stablecoins! This is leading to the stablecoin of choice being offshore, opaque, and not involved in Treasury bills ... USDT and not the regulated and transparent options of USDC. How things have changed!
Charts of the Week
A Long-Term Look at Interest Rates
June 2, 2023
A long-term look at interest rates
Charts of the Week
Weekly Research Recap
June 2, 2023
Some interesting charts from our recent posts
Newsclips
Is Another Liquidity Drain Coming?
June 1, 2023
Now that a debt deal is in place, the Treasury is expected to issue up to $1 trillion in new securities over the next few months. If investors purchase these securities, it will create a liquidity drain. History shows such drains cause financial market turbulence. If these Treasuries are purchased using funds in the Fed's reverse repo facility, the liquidity drain will be greatly muted.
Newsclips
Total Return Review – All About Those Tech Stocks
June 1, 2023
By just about any measurement, tech stocks are experiencing one of their best total return periods on record.
Newsclips
Quick Comments/What We’re Reading
June 1, 2023
Today's topics include will payrolls hit 14?, Timiraos signals a skip, business slows & earnings rise, debt ceiling resolution, how to solve CRE's worries? more loans, taking a look at US junk bonds, Dudley argues for higher rates, Asian markets' promise, and remote work gets a win