Since inception in June 1998, UBS' Managed High Yield Plus Fund survived through the dot-com (and Telco) collapse and the post-Lehman credit carnage but, based on the press release today, has been felled by the current credit cycle's crash. After 3 years of trading at an increasingly large discount to NAV, and plunging to its worst levels since the peak of the financial crisis, the board of the Fund has approved a proposal to liquidate the Fund. While timing is unclear, this is the worst case for an increasingly fragile cash bond market as BWICs galore are set to hit with "liquidty thin to zero."
Submitted by Tyler Durden on 10/13/2015 - 22:35 AsiaPac stocks are extending losses in early trading asit appears our fears about the Chinese coporate bond market bubble are also on the minds of Chinese regulators as they look to "boost reforms." After the PBOC has fixed the Yuan stronger for 8 straight days, the onshore and offshore Yuan has weakened appreciably in the last 24 hours and PBOC has devalued Yuan by 177pips - the biggest in 2 months (as PBOC researchers push to "speed up Yuan internationalization" and implicitly inclusion in the SDR basket).
Submitted by Tyler Durden on 10/13/2015 - 14:30 Russia “received no answer” when it asked its international partners to provide information on terrorist targets in Syria, or to say at least where its planes shouldn’t bomb, Putin said. “It’s not a joke, I’m not making any of this up,” he said.
Submitted by Tyler Durden on 10/13/2015 - 22:30 Every day, there are a set of messages broadcast to the population. These messages are projected to replace what people would think on their own, if left to their own devices. What they’re supposed to think about nuclear weapons, pesticides, medical drugs, vaccines, presidential elections, major media, the CIA, US foreign policy, mega-corporations, brain research, collectivism, surveillance, psychiatry, immigration... It seems today that the main attribute of the individual is "perceiving what is." Perceiving Reality.
Submitted by Tyler Durden on 10/13/2015 - 22:00 To Protect and Serve? When Whitehill resident Andrea accidentally cut her arm on glass, her sister frantically called 911, "I need a paramedic." Columbus Police Officer Jon Thomas responded to the house where he pulled out his gun and shot toward the family's dog (which he claims ran toward him), missed, and hit Andrea's four-year-old daughter Ava in the leg, shattering her bone. As The Columbus Dispatch reports, Andrea also revealed that the cop never apologized or asked if Ava was okay and immediately left after shooting her.
Submitted by Tyler Durden on 10/13/2015 - 21:20 AsiaPac stocks are extending losses in early trading asit appears our fears about the Chinese coporate bond market bubble are also on the minds of Chinese regulators as they look to "boost reforms." After the PBOC has fixed the Yuan stronger for 8 straight days, the onshore and offshore Yuan has weakened appreciably in the last 24 hours and PBOC has devalued Yuan by 177pips - the biggest in 2 months (as PBOC researchers push to "speed up Yuan internationalization" and implicitly inclusion in the SDR basket).
Submitted by Tyler Durden on 10/13/2015 - 20:52 Admittedly it's not Mayweather-Pacquiao, but Las Vegas is buzzing ahead of tonight's rumble-in-the-jungle between Bernie and The Battle-axe. While Joe Biden remains the most notable absentee (or will he?) there are three other 'debaters' to carry water and towels for Hillary and Bernie as they drag one another left-er and left-er and more populist-er. In the pre-fight Sanders has lobbed some awkward Iraq War questions at 'hawkish' Hillary but as Clinton's 2008 campaign manager notes, "she's rolled out Latinos for Hillary, Women for Hillary, and met the leadership of Black Lives Matter; she has checked a lot of boxes walking into this debate."
Submitted by Tyler Durden on 10/13/2015 - 20:44 Two weeks ago, using Macquarie data, we found something disturbing at China's micro level: a quarter of Chinese firms with debt are unable to cover their annual interest expense currently. Over the weekend, Hong-Kong based CLSA decided to take this micro-level data and look at it from the top-down. What it found was stunning. According to CLSA estimates, Chinese banks' bad debts ratio could be as high 8.1% a whopping 6 times higher than the official 1.5% NPL level reported by China's banking regulator!
Submitted by Tyler Durden on 10/13/2015 - 20:19
Submitted by Tyler Durden on 10/13/2015 - 20:00 The stage is being set for World War III, but most Americans are completely and totally oblivious to all of this because they are so wrapped up in their own little worlds. Most Americans still seem to assume that the Russians and the Chinese are our "friends" and that any type of conflict between major global powers is impossible. Well, the truth is that conflict has already begun in Ukraine and Syria, and tensions are rising with each passing day. It won’t happen next week or next month, but we are on the road to World War III.
Submitted by Tyler Durden on 10/13/2015 - 19:30 A confluence of circumstances have conspired to make asset allocation a somewhat vexing task these days. The so called “tricky trinity” is comprised of the following three factors: decelerating global growth, the absence of a policy put, and risk premia offering but a limited buffer. For HSBC, this means "remaining highly risk averse" going forward.
Submitted by Tyler Durden on 10/13/2015 - 19:00 Want to create a gun-free America in 5 easy steps? Here’s all there is to it...
Submitted by Tyler Durden on 10/13/2015 - 18:35
Submitted by Tyler Durden on 10/13/2015 - 18:19 "Underproduction, undercapacity, deflation, currency wars, demographics, falling birth rates" - those are the biggest fears which Fourth Turning author, and head of Saeculum Research Neil Howe, lays out in this interview excerpt courtesy of RealVision TV.
Submitted by Tyler Durden on 10/13/2015 - 17:46 It is America the Herd that is keeping America the Civilization from feeling and being prosperous and safe. For too long, we have let our rulers ride us roughshod, using us to trample the economy and global tranquility with its economic and military interventions. Make America good again, and the kinds of greatness actually worth having will naturally follow.
Submitted by Tyler Durden on 10/13/2015 - 17:20 Despite The Fed's best efforts to crush the business cycle, the crucial credit-cycle has reared its ugly head as releveraging firms (gotta fund those buybacks) and deflationary pressures (liabilities fixed, assets tumble) have led to a soaring market cost of capital and surge in downgrades. In fact, in the latest quarter, the ratio of upgrades-to-downgrades is its weakest since the peak of the financial crisis in 2009. “We’re seeing more widespread weakness across more industry sectors in the U.S... It’s become broader than just the commodity story.”
JPMorgan Misses Across The Board On Disappointing Earnings, Outlook; Stealthy Deleveraging ContinuesSubmitted by Tyler Durden on 10/13/2015 - 16:52 Maybe we now know why JPM decided to release results after market close instead of, as it always does, before the open: simply said, the results were lousy top to bottom, the company resorted to its old income-generating "gimmicks", it charged off far less in risk loans than many expected it would, and its outlook while hardly as bad as it was a quarter ago, was once again dour.
Submitted by Tyler Durden on 10/13/2015 - 16:30 One of the primary arguments by the more "bullish" media is that the current setup is much like that of 2011 following the "debt ceiling" debate and global economic slowdown caused by the Tsunami in Japan. While there are certainly some similarities, such as the weakness being spread from China and a market selloff, there are some marked differences.
Submitted by Tyler Durden on 10/13/2015 - 16:06
And Now The Bad News: Millennials Will Need To Withdraw $270K Per Year From Their Retirement AccountsSubmitted by Tyler Durden on 10/13/2015 - 16:00 As Allianz latest survey notes, 61% of all middle-class Americans, across all income levels included in the survey, admit "they are not sacrificing 'a lot' to save for retirement," which is a major problem as, assuming 2% inflation (the Fed's current target) when millennials enter retirement, they will need to withdraw about $270,000 per year from their retirement plans.
Submitted by Tyler Durden on 10/13/2015 - 15:46 We were curious to observe what the traditionally far more rational, and skeptical, bearish community had to say about the real "quality" of the worst stocks on both the NYSE and the Nasdaq in those two brief weeks when things seemed to be getting back to normal: the stocks which if and when the Fed does lose control, would be the first to "go." Here is the answer.
Submitted by Tyler Durden on 10/13/2015 - 15:31 After several purported incursions into Turkish airspace by Russian fighter jets, Ankara is "irate" at Moscow and now, tensions over Syria threaten to undermine the two countries' energy relationship. Thus, the Nord Stream line to Germany - the capacity of which is set to double - has now become more important than ever for Gazprom.
Submitted by Tyler Durden on 10/13/2015 - 15:10 “I can’t even say with conviction that I’m sure, looking strictly on a cost-benefit basis, that FATCA’s... benefits are going to outweigh the cost.” FATCA constitutes theft. The US government is generating a little bit of revenue and the great expense of foreign banks and governments (not to mention the thousands of Americans who have had to renounce their citizenship because of FATCA’s idiotic rules).
Submitted by Tyler Durden on 10/13/2015 - 14:10 The elephant donkey in the room...
Submitted by Tyler Durden on 10/13/2015 - 13:47
For months, we have been writing of the “worst global economy of our lifetimes” – no matter where you live, or how old you are. Yes, the destructive power of unfettered money printing, market manipulation and propaganda in its purest form – like crack cocaine, or “Love Potion #9” for 1980s movie junkies – has attempted to put lipstick on the world’s biggest economic pig. However, the unprecedented “deformation” it has caused –economically, politically, and socially – is causing catastrophic global ramifications; which mathematically, cannot be unwound until the fiat House of Sand it lies upon completely implodes. Which clearly is occurring now – as no matter where one looks, ironclad evidence that the “end of belief Central banks can save us” is visible, for more and more of the world’s seven-plus billion denizens to see.
I mean geez, how can anyone not be terrified at this morning’s “words of wisdom” from one of the most powerful bankers on the planet, German Finance Minister Wolfgang Schaeuble – in espousing what the Miles Franklin Blog has warned of, to mainstream jeers, for the past decade?
This is how your government will take care of you WTSHTF...
Earlier this year, I published a post titled, Conspiracy Fact – How the Government Conducted 239 Secret Bioweapon Experiments on the American People. Here are a few excerpts:
It all began in late September of 1950, when over a few days, a Navy vessel used giant hoses to spray a fog of two kinds of bacteria, Serratia marcescens and Bacillus globigii — both believed at the time to be harmless — out into the fog, where they disappeared and spread over the city.
The unsuspecting residents of San Francisco certainly could not consent to the military’s germ warfare test, and there’s good evidence that it could have caused the death of at least one resident of the city, Edward Nevin, and hospitalized 10 others.
Saudi Arabia is much in the news these days for beheadings, crucifixions and varied whippings and stonings of young women and old men… and, at the same time, the UN has just added the Saudi ambassador to head up its Council on Human Rights! You really can’t make this stuff up!
But, why these reports and why now? Saudi Arabia has always had an atrocious system of “justice.” If the authorities think you are a danger to the regime they won’t just arrest you – they’ll arrest your entire family.
But the news-flow about Saudi atrocities is quite remarkable. Someone, it could be speculated, is working overtime to make sure that we know Saudi Arabia is a backward and barbaric country.
1. Is the US dollar still the most important safe haven for fiat enthusiasts?
- For the possible answer, please click here now. That’s the US dollar versus Japanese yen daily chart. The dollar collapsed in August, as global stock markets suffered a meltdown!
- Simply put, the yen acted as a safe haven during the stock market crash, and the dollar acted as a “risk on” asset. The dollar is now trading in a fairly large symmetrical triangle pattern, after breaking a key uptrend line.
- A bearish double top pattern also appears to be in play.