Next from the monetary kitchen
Negative nominal interest rates, helicopter money and the "cashless society" – like a play on tryout in New Haven, the ideas of the next phase of radical monetary control are getting a public airing before their Broadway debut.
Fears of Deutsche Bank AG's missing an interest payment on a contingent convertible security sent the bank's common-stock price skidding. Are Deutsche's problems idiosyncratic or systemic?
For many a disappointed Canadian retail investor, "preferred" is more a term of derision than of description. We write to suggest that their loss is the contrarian's gain.
Fear, always a value accelerant, is back in the air and on the palms. Putting the "high" back into high yield.
Mortgage real-estate investment trusts are the topic, interest rates are the sub-topic and income – precious income – is the point of it all.
China's cadres command that the People's Republic will grow by 6.5% in 2016. Say it were true. How much financing would that require and where would the money come from?
Mr. Market, the merciless
There is no such thing as a separate and distinct “U.S. economy.” There is rather the single dollarized and financialized and over-leveraged worldwide economy. Like it or not, we are all in this together—the Chinese communists, the European socialists, the Japanese statists and we the people.
Parent and offshoot have something to offer, each in its own way. “The cure for low prices is low prices.”
The final sentence of the final article in the previous issue of Grant’s stopped just short of the period. Here it is, from beginning to end: “Let us not forget that Cowperthwaite was the architect of prosperity.”
In a bear market, two and two make three, at the most. To judge by the fancy, hope-inflated multiple of a certain U.S.-based multinational, this must be a bull market, still.
Vancouver is taking radical – though, to American eyes, hardly unprecedented – steps to perk up flagging condominium sales. Check back next year for data on virtual defaults.
Cause and effect, leverage and volatility, babies and bath water are the topics under discussion; junk bonds and leveraged loans (and the structures that house them) are the featured asset classes.
As a purveyor of e-cigarettes, Vapor Corp. has achieved the epiphany of joining share price with corporate name.
Virtual-reality interest rates
As Grant’s goes to press, the scholars of the FOMC were deep in cogitation. Some expect Chair Yellen to emulate Mario Draghi and implement negative interest rates. Would it be so implausible?
Jobs 1 and 2 for the new year
Top two items for the 2016 agenda: Free Lee Bo, the abducted Hong Kong bookseller! Unleash the constructive forces of arbitrage!
Nothing is better calculated to restore the profitability of a fallen industry than to cut off its access to credit. A bullish word for a desperately out-of-favor business.
To judge by the long-range projections contained in the Jan. 11 press release disclosing the merger of Shire plc and Baxalta, Inc., the document was drafted by clairvoyants.
A certain kind of hybrid security answers the needs of leveraged issuers and yield-starved investors alike. It offers incremental returns relative to senior bonds in the same capital structure. There must be something wrong with it.
Falling grain prices, a rising dollar exchange rate, the softening market in farmland – anyone feel nostalgic yet? Paging Bob Dylan.
On Jan. 8, the editor of Grant’s addressed the BofAML Chief Investment Officers Conference in Hong Kong. A salute to the former British colony’s late financial secretary.
Hear Messrs. Train and Junk Bond
Dr. Copper has spoken. Heed, now, the macroeconomic soundings in rail traffic and corporate debt. Your move, Chair Yellen.