Riskiest Junk-Rated Companies Borrow at Lowest Cost Ever amid Torrid Yield Chasing. AMC Bonds Sell at a Premium by Wolf Richter • Apr 20, 2021 • 63 Comments Commercial bankruptcy filings drop to lows last seen in the loosey-goosey days just before the Financial Crisis.
Stock Market Leverage in La-La Land, Rises to Historic WTF High by Wolf Richter • Apr 17, 2021 • 258 Comments Archegos shows how leverage is the great accelerator of stock prices on the way up, and on the way down. One of its bets, ViacomCBS collapsed by 60%.
Fed’s Bond Purchases Won’t Save all Mall CMBS from Defaulting by Marc Joffe • Apr 15, 2021 • 59 Comments Subsidizing CMBS impedes the necessary market adjustment away from commercial property and toward residential redevelopment.
More Signs of Cooling Demand: Mortgage Applications to Purchase a Home Drop Below 2019 for First Time in Pandemic Housing Craziness amid Higher Interest Rates by Wolf Richter • Apr 14, 2021 • 168 Comments And refinance mortgage applications plunged by over half from 2020 spike.
I Now Track the Most Important Measure of the Fed’s Economy: the “Wealth Effect” and How it Impacts Americans Individually by Wolf Richter • Apr 12, 2021 • 333 Comments The Fed provides the data quarterly, I dissect it at the stunning per-capita level.
Archegos Implosion is a Sign of Massive Stock Market Leverage that Stays Hidden until it Blows Up and Hits the Banks by Wolf Richter • Mar 29, 2021 • 202 Comments Banks, as prime brokers and counterparties to the hedge fund, are eating multi-billion-dollar losses as they try to get out of these secretive stock derivative positions.
Everyone Knows the Housing Market Craziness Can’t Last, then the First Dip Turns into a Big Drop by Wolf Richter • Mar 22, 2021 • 194 Comments Now they’re wondering why.
First Signs that Surging Mortgage Rates Are Dialing Down the Heat under the Housing Market by Wolf Richter • Mar 21, 2021 • 142 Comments The Fed smiles upon rising long-term Treasury yields as sign of economic growth and rising inflation expectations.
Powell in WSJ Op-ed: “I Truly Believe that We [the Rich] Will Emerge from this Crisis Stronger and Better, as We [the Rich] Have Done so Often Before” by Wolf Richter • Mar 19, 2021 • 338 Comments Gimme a break, will ya? Wherein I rant, supported by the Fed’s own data.
Market Manias Galore, But Long-Term Interest Rates Smell a Rat by Wolf Richter • Mar 18, 2021 • 122 Comments These manias and the rising long-term interest rates are on collision course.
