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.
Memos
More Write-downs and Forced Sales are Likely
As asset valuations are gradually updated, more forced sales and fund lock-ups are likely.
A Virtue Signalling Rate Cut
The RBA’s decision to cut rates on March 4th seems more about appearances than cold economic logic.
Investors are Chasing “Bargains” in Turnarounds and Cyclicals
In the search for an apparent bargain, turnaround stories and cyclical companies are attracting far more capital and attention than they otherwise would.
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.