Covenant Lite You know it’s late in the credit cycle when credit investors give away their key protections in return for just a little more yield. This acquiesce comes in different forms, including higher levels of leverage, longer dated debt, subordinated debt and weakened or eliminated covenants commonly referred to as “covenant lite”. This risk […]
This article discusses both the obvious and the unseen implications of population growth, with the aim of allowing all Australians and particularly our leaders to consider whether a bigger Australia is better.
Bite size updates on the Libor spike, Toy’s R Us, franking credit changes and the Banking Royal Commission
Bite size updates on US government debt, Chinese margin lending and bank capital
The criticism of short volatility strategies in the wake of the recent VIX spike is misguided and uniformed. If correctly managed, short volatility strategies have a history of producing outsized returns.
A recent paper from the IMF concludes that China may be able to continue its current trajectory for the medium term but in the long term a downturn, likely accompanied by a banking crisis is inevitable.
Bite size updates on high yield spreads, Puerto Rico, Venezuela and China.
Investors are facing a similar conundrum to a person onboard the Titanic’s maiden voyage who knows how the journey will end. The correct response to the risk ahead is to loiter around the lifeboats in credit and equity investments.