An update: The recent turbulence in emerging markets (EM) has so far prompted a pause on rate cuts from Brazil, triggered the first rate hike since 2014 from Bank Indonesia, prompted multiple dramatic rate hikes from Argentina’s central bank and even forced Erdogan to acquiesce to an emergency rate hike to put the brakes on
Since 2009, the level of global nonfinancial companies rated as speculative, or junk, has surged by 58%, to the highest level ever. With 40% rated B1 or lower, the point that Moody’s considers “highly speculative,” as opposed to “non-investment grade speculative.” In dollar terms, that translates to $3.7 trillion in total junk debt outstanding, $2
Chart of the Day While many corporate balance sheets are solid thanks to low interest rates and a nine year growth spurt, there is a ‘mountain’ of bonds maturing over the next 10 years. This is yet another factor that the Fed needs to keep in mind regarding their interest rate policy decisions and quantitative
On what is now a tradition on my blog, Memorial Day is a time to reflect on the brave men and women who sacrificed the ultimate gift – life – to protect our freedoms. This is the story of Travis Manion and Brendan Looney. Roommates at the Naval Academy, patriots and true warriors who know
The Vatican released a 15-page document attacking global capitalism, calling for greater regulation of the financial system: “The spread of [credit default swaps] without proper limits has encouraged the growth of a finance of chance, and of gambling on the failure of others, which is unacceptable from the ethical point of view.” Japan Railways is