Are claims that CLOs will bring down American banks another “Big Short” or merely a beat-up?
The Winner Is… Busted Companies
Retail investors piling into shares of bankrupt companies is a sure sign this isn’t a typical stock market rally
The Federal Government Tacitly Approves Conflicted Financial Advice
The decision to ban commissions on only some listed securities encourages dodgy advisors to provide suboptimal advice.
Credit is Normalising, But…
Credit markets are improving but three dark clouds on the horizon point to the possibility of worsening conditions ahead.
Home Loan Data Shows the Economic Cost of Lockdowns
The lockdown has resulted in a surge in payment problems, with one in eight home loan borrowers now unable to keep up with their scheduled repayments.
Hundreds of Thousands of Small Businesses are Near Death
The extraordinary number of small businesses that had problems paying their debts before this crisis began now have few options left.
Virgin is Another Disaster for Listed Note Buyers
Virgin’s downfall is another example of how the predominantly retail buyer base has long struggled to recognise the risks of hybrid securities.
Virgin is Better Off Going Through Insolvency
Without going into insolvency soon, Virgin Australia risks going the way of Ansett and being sold off for scrap.
A Chance to Reset in Debt
For those that seek out the illiquidity premium, this is a rare opportunity to increase your prospective return whilst decreasing the risk of long-term capital loss.
A Green Light for Corporate Theft
The changes to insolvency protections will allow the weakest business to accrue liabilities and inflict greater losses on their employees and suppliers.
Central Banks Spawned this Crisis
From 2012-2019 central banks should have been unwinding stimulus, but instead they increased it and created a bubble in financial markets and the economy.
More Write-downs and Forced Sales are Likely
As asset valuations are gradually updated, more forced sales and fund lock-ups are likely.