Credit Writedowns

Last night's coronavirus speech by US President Trump was poorly received by markets. US equity markets were jittery after closing in bear market territory. So, people were looking for concrete stimulus measures to have reason to buy shares…

We are now to the point where it's clear the coronavirus situation will last for weeks and months to come as more and more countries are forced into the lockdown and quarantine approach to slow the virus down. This is a matter of life and…

The S&P500 futures index are limit up as I write this. What a turnaround this is from yesterday. It shows you that volatility will rule the day until we get certainty on the economic and market issues behind the coronavirus epidemic.…

We are now facing the potential for a severe financial crisis, with all asset markets showing major moves toward safe haven assets. What has precipitated panic is the Saudi oil price cut at the weekend because it has caused oil prices to…

When I was thinking about writing this post earlier in the weekend I was only going to stress the GDPNow number. And the point was to reiterate how well the US economy was doing pre-coronavirus. And then I was going to make the abrupt…

Setup We are set for yet another down day in equity markets, with S&P and Nasdaq futures showing 3% losses as I write this. The real moves are in the bond market though because we've seen 20 basis point moves at the long-end of the…

I am growing a bit weary of all of the doom and gloom associated with the coronavirus outbreak. And I bet many of you are as well. Unfortunately, it is what is dominating both headlines and people's minds because it activates deep-seated…

With regard to coronavirus, I am still very much focused on the economic fallout. But I do want to circle back around to the themes that inspired my post on market structure vulnerabilities amidst a coronavirus pandemic. What’s inspired me…

*I started this post about 8:30 EST. So, hindsight tells me the part on market tone is on the money, as the market is selling off a bit. Market tone So, I was right yesterday morning about the potential for a relief rally. It was a pretty…

A relief rally is probably the best we can hope for at this juncture. Bond yields are still plummeting, showing both risk-off sentiment and an expectation that monetary easing is coming For example, the market is now pricing in with near…