Jeffrey Gundlach, CEO of DoubleLine Capital LP, has some interesting thoughts on debt, stock buybacks, and leverage.
Please consider Gundlach's Slideshow on Debt Financed Buybacks.
Corporate Credit as Percentage of GDP
Investment Grade Has Shorter Maturity Than High Yield
US Corporate BBB Debt
BBB debt is one step above junk.
Rise of the Zombie
In the US, 15% of the companies in the S&P 500 are Zombie Corporations.
Zombie firms are those that are unable to cover debt servicing costs from current profits over an extended period.
If they cannot refinance, they go under.
Junk Rated Bonds
On December 28, I noted Suddenly There's No Appetite for Bond Deals as Spreads Widen.
Never before have there been so many bonds this close to junk.
Bond Market Breakdown (August 2018)
- AAA $0.11 Trillion
- AA $0.59 Trillion
- A $2.60 Trillion
- BBB $3.15 Trillion
- BB $0.57 Trillion
- B $0.52 Trillion
- C $0.16 Trillion
Fed on Hold
The Powell Fed is now on hold. It cannot possibly matter one bit. It's simply Too Late to Matter.
This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
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AUD/USD depreciates on risk aversion amid a stronger US Dollar
AUD/USD extends its losses for the second successive session on Friday. However, market activity is expected to be subdued due to light trading on Good Friday. Meanwhile, the US Dollar strengthens as recent data indicates annualized economic expansion in the United States, driven by consumer spending.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Optimism price could fall as nearly $90 million worth of OP tokens is due flood markets
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.