Corporate bond issuance was strong in the first half. High-yield, in particular, is on course for yet another record year. The Fed essentially provided a backstop to corporate bonds in March last year, setting ablaze risk-on sentiment. Corporate profits are … Continued
Sideways movement in margin debt a sign investors’ risk appetite waning? 35-year correlation between stocks and margin debt of 0.95, 2014 was only 0.28 In 2000 and 2007, peak in margin debt preceded peak in C&I loans by one-plus year … Continued
With massive inflows just last week, stocks need another to stay afloat With at least three important events on calendar, Jan can throw wrench in the works With stocks holding up amidst signs of preference for risk-off; opportunity to sell … Continued
Sellers take advantage of early-morning strength to sell more stocks Amidst this, transports, high-yields draw buyers; panic noticed in VIX:VXV action Trade could be developing, but given developments in energy space, sustained rally not probable Another ugly day! Could have … Continued
Small-cap shares are lagging. This is no news. Small-caps have been a topic of discussion on this blog several times before. They have lagged their large-cap brethren, the S&P 500 Index, since early March. That was when money started to … Continued