For credit veterans Greensill’s downfall isn’t a surprise with many common red flags long associated with this business
Credit
Too much cash can create a crisis
Financial markets are delirious with stimulus and won’t stop partying until there’s a crash so big that central banks can’t effect a bail out
Credit is Normalising, But…
Credit markets are improving but three dark clouds on the horizon point to the possibility of worsening conditions ahead.
Credit Snapshots – January 2020
Bite size updates on soaring global debt levels, anecdotes of yield chasing and the LIC/LIT fee battle.
Credit Snapshots – December 2019
Bite size updates on Paul Volcker’s legacy, European banks and UK fund lock ups.
Credit Snapshots – November 2019
Bite size updates on emerging market debt, US auto loans and Virgin Australia’s very junky debt raising.
Credit Snapshots – October 2019
Bite size updates on leveraged loans, Greece’s non-performing loan securitisation and India’s bad debts.
BB’s are the new BBB’s
With the drop in overnight rates and credit spreads, credit investors are having to take far more risk to earn the same return
Credit Snapshots – March 2019
Bite size updates on the RBA’s responsibility for bubbly house prices and Greece’s rating upgrade and bond issuance.
Credit Snapshots – November 2018
Bite size updates on the Australian Business Securitisation Fund, securitisation downgrade risks, TLAC and Deutsche Bank
How a “Bear” Outperforms in a Rising Market
How is it possible that a “bear” can position their portfolios for the likelihood of a credit downturn and continue to outperform?
Credit Snapshots – April 2018
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 […]