asterisk2a + refinancing   3

The Fed has to deal with its own zombie apocalypse
"However, there are pockets of greater weakness like these zombie companies. These pockets are likely to see some more turbulence than overall conditions. Some companies definitely will go out of business." It isn't just the zombies, though, that should worry about higher rates. Corporate America overall has been piling on the debt, which grew 8.3 percent in the second quarter, according to figures the Fed released Friday. [...] Michael Contopoulos, high-yield strategist at Bank of America Merrill Lynch, said the high-yield space is a mess no matter what the Fed does. Global economic weakness and deteriorating fundamentals are making it increasingly harder for the Fed to underwrite junk debt through a zero funds rate. [...] Earnings for junk companies have been "incredibly weak," [...] "leverage is at all-time highs" while "defaults and downgrades are creeping into the market." [...] the issues with high-yield could be more secular in nature.
zombie  corporations  zombie  consumer  Junk  Bond  Taper  Fed  Fed  mandate  USA  Richard  Koo  interest  payments  bubble  ZIRP  NIRP  QE  unconventional  monetary  policy  unintended  consequences  distortion  unknown  unkown  complexity  QT  2015  China  credit  bubble  BRIC  monetary  policy  monetary  transmission  mechanism  liquidity  trap  liquidity  squeeze  credit  ratings  secular  stagnation  western  world  refinancing  debt  monetisation  debt  monetization  corporate  debt  leverage  margin  trading  reflate  reflation  productivity  UK  Europe  output  gap  competitive  competition  globalization  globalisation  borderless  flat  world  New  Normal  economic  history  trickle-down  economics  marginal  cost  economics  of  abundance 
september 2015 by asterisk2a
World Bank warns on US rate rise - BBC News
[ game of chicken ] [ can private sector carry forward the little bit of recovery/growth the western world got in a rising interest rate world, that will eat away spending bc of higher repayment rates amid little to no wage growth !!! ] [W]arned developing countries to brace themselves for possible financial turbulence when the US Federal Reserve starts to raise interest rates. It could come as early as Thursday when the Fed concludes a policy meeting. A new report from the World Bank says there will probably be a modest impact on developing countries. But it also warns there is some risk that it could be worse. The Bank says it is possible that there would be sufficient disruption to capital flows into developing countries to harm economic growth and financial stability. //&! bit.ly/1QhP6Of //&! youtu.be/G8lCqhCbrA4 //&! youtu.be/KH1UlvgXqTE = bond sell-off move in anticipation of Taper. //&! strength of dollar added already 25bps - youtu.be/zWrxFszwrsQ &! youtu.be/lpTkQqEQmE4
Taper  Fed  BOE  2015  BIS  ZIRP  NIRP  QE  Richard  Koo  reflate  reflation  asset  bubble  hunt  for  yield  FOMO  frothy  World  Bank  distortion  unknown  unkown  unintended  consequences  capital  allocation  asset  allocation  speculative  bubbles  speculative  speculation  monetary  policy  monetary  transmission  mechanism  liquidity  trap  monetary  theory  GFC  recovery  credit  bubble  China  BRIC  Brazil  India  South  Africa  Russia  Europe  UK  BOJ  Abenomics  liquidity  credit  squeeze  excess  reserves  PBOC  economic  history  creditcrunch  credit  crunch  ECB  commodity  prices  energy  price  Oil  price  OPEC  petrodollar  QT  FX  reserves  global  trade  New  Normal  secular  stagnation  faultlines  Structural  Impediments  imbalance  western  deflationary  deflation  austerity  fiscal  policy  monetary  stimulus  monetary  system  debt  monetisation  debt  monetization  unconventional  monetary  policy  debtoverhang  refinancing  creditrating  creditrisk  deleveraging  private  debt  household  debt  disposable  income  discretionary  spending  wage  stagnation  wage  growth  income  growth  income  distribution  low  income  inequality  Gini  coefficient  squeezed  middle  class  downward  mobility  working  poor  precarious  work  Zero  Hour  Contract  Contractor  self-employment  Zeitarbeit  Leiharbeit  Sozialer  Abstieg  j 
september 2015 by asterisk2a
Junk's heyday is here and now - YouTube
http://www.zerohedge.com/news/2013-05-09/deutsche-bank-we-fully-understand-why-authorities-wouldnt-want-free-markets-operate- "We would stress that we fully understand why the authorities wouldn't want free markets to operate today as the risk of a huge global default and unemployment cycle would still be very high. However their intervention has a cost in our opinion. Socially this might be worth paying but we do think it exists."
bankruptcy  cycle  unemployment  monetary  policy  bond  bubble  zombie  banks  fixed  income  miltonfriedman  BOJ  artificial  demand  Insolvenzverschleppung  QE  lostgeneration  demand  and  supply  property  bubble  hayek  debt  monetisation  debt  bubble  bubble  default  greatdepression  zombie  consumer  debt  monetization  centralbanks  insolvency  cycle  Free  Lunch  IMF  default  cycle  GFC  refinancing  corporate  debt  haircut  unintended  consequences  high  yield  debt  Student  Loan  zombie  corporations  ECB  monetary  system  default  rate  credit  bubble  greatrecession  lostdecade  NIRP  Fed  economic  history  financial  repression  Super  monetarism  sovereign  debt  crisis  youth  unemployment  unconventional  monetary  policy  default  scenario  ZIRP  Junk  Bonds 
may 2013 by asterisk2a

related tags

Abenomics  Abstieg  abundance  Africa  allocation  and  artificial  asset  austerity  Bank  bankruptcy  banks  BIS  BOE  BOJ  bond  Bonds  borderless  Brazil  BRIC  bubble  bubbles  capital  centralbanks  China  class  coefficient  commodity  competition  competitive  complexity  consequences  consumer  Contract  Contractor  corporate  corporations  cost  credit  creditcrunch  creditrating  creditrisk  crisis  crunch  cycle  debt  debtoverhang  default  deflation  deflationary  deleveraging  demand  discretionary  disposable  distortion  distribution  downward  ECB  economic  economics  energy  Europe  excess  faultlines  Fed  financial  fiscal  fixed  flat  FOMO  for  Free  frothy  FX  gap  GFC  Gini  global  globalisation  globalization  greatdepression  greatrecession  growth  haircut  hayek  high  history  Hour  household  hunt  imbalance  IMF  Impediments  income  India  inequality  insolvency  Insolvenzverschleppung  interest  job  Junk  Koo  Leiharbeit  leverage  liquidity  Loan  lostdecade  lostgeneration  low  Lunch  mandate  margin  marginal  mechanism  middle  miltonfriedman  mobility  monetarism  monetary  monetisation  monetization  New  NIRP  Normal  of  Oil  OPEC  output  payments  PBOC  petrodollar  policy  poor  precarious  price  prices  private  productivity  property  QE  QT  rate  ratings  recovery  refinancing  reflate  reflation  repression  reserves  Richard  Russia  scenario  secular  security  self-employment  South  sovereign  Sozialer  speculation  speculative  spending  squeeze  squeezed  stagnation  stimulus  Structural  Student  Super  supply  system  Taper  theory  trade  trading  transmission  trap  trickle-down  UK  unconventional  underemployed  unemployment  unintended  unknown  unkown  USA  wage  western  work  working  world  yield  youth  Zeitarbeit  Zero  ZIRP  zombie 

Copy this bookmark:



description:


tags: