leverage Archives - Investment Watch Blog

SEC Chair Gary Gensler: “Though I’m not suggesting that such individual funds areas large as today’s largest banks, as noted in the Federal Reserve’s recent Financial Stability Report, the largest hedge funds by gross asset value have at times on average exceeded 20-to-1 leverage.

May 19, 2023 1:15 pm

by Dismal-Jellyfish https://www.sec.gov/news/speech/gensler-honest-unbiased-investment-management-05192023#_ftn10 SEC Chair Gary Gensler in speech “Honest and Unbiased Investment Management”: Remarks before the Inaugural Conference on Emerging Trends in Asset Management Highlights Private Funds: Today, nearly 75 years later, the private fund industry has grown to …

What Is the Best Leverage for Your Forex Trading Strategy?

November 2, 2022 7:44 pmNovember 2, 2022 7:44 am

Leverage is a significant factor in Forex trading, but high leverage is not always better. Using too much leverage can be risky, especially for beginners. It can lead to trades you do not fully understand, and even small losses can …

Lehman Brothers had a leverage ratio of 29x when it collapsed… in terms of asset quality, investors expect most assets of many banks to become worthless, indicated by price-to-book ratios as low as 0.25…

October 16, 2022 10:08 pmOctober 15, 2022 8:22 am

by silvertomars https://www.lewrockwell.com/2022/10/alasdair-macleod/banking-crisis-the-great-unwind/ 10 YR TREASURY JUST BROKE 4% FOR THE FIRST TIME SINCE JUNE OF ’08

Never seen a leverage like this on credit card.. the consumer is ‘super strong’… In 2020 insider sold the top and in april 2020 they bought the bottom.. now they did the same thing

May 8, 2022 8:32 amMay 7, 2022 7:49 am

Obviously higher wages > higher possibility to go leverage on credit card.. the FED has created an atomic bomb — Alessio (@AlessioTMAD) May 6, 2022 Very concerning. Consumption is going to increase through the summer – what happens if supplies …

Wolf Richter: level of stock market leverage is still GIGANTIC despite recent sell-off

February 19, 2022 12:05 pm

The only measure of stock market leverage that is reported monthly is margin debt at brokers, via FINRA. Much of the stock market leverage isn’t reported, such as Securities Based Lending, and even banks and brokers that fund this leverage …

Regulators Afraid: Systemic Risk Of Zombie Companies On The Rise | Leverage Loans Could Burst Bubble

February 14, 2022 8:58 pm

Risks associated with #leveragedlending remain a concern for the #FederalReserve and other top federal bank regulators, according to a new government report. Most of those held by #banks are higher-rated, with zombie companies holding the bulk of the riskiest #loans. …

A leverage-based sovereign investment fund. What could go wrong?

October 3, 2021 10:42 am

https://twitter.com/OwenCallan/status/1444631310262325252

So a small bloc of Democrats are using their leverage to hold up legislation until their demands are met?

September 30, 2021 10:46 pm

So a small bloc of Democrats are using their leverage to hold up legislation until their demands are met? I was told this was a terrible idea and people were deeply unserious for even suggesting it. https://t.co/KdVflII8vm — Robbie Jaeger …

“No risk”… Unprecedented margin leverage in the US stock market.

August 16, 2021 11:22 am

"No risk" Unprecedented margin leverage in the US stock market. pic.twitter.com/xAIH5hvdH1 — Daniel Lacalle (@dlacalle_IA) August 16, 2021 Breadth has improved for S&P 500, but deteriorating again for NASDAQ and Russell 2000, keeping the dispersion wide pic.twitter.com/zsIx2OLZJ6 — Liz Ann …

Google searches for “hyperinflation” have rolled over decisively… Private leverage to hinder bank loan growth… Market breaks very soon?

August 5, 2021 10:11 amAugust 4, 2021 1:45 pm

Google searches for “hyperinflation” have rolled over decisively⁦@GoogleTrends⁩ pic.twitter.com/rk1ubFQpcV — Liz Ann Sonders (@LizAnnSonders) August 4, 2021 Liquidity Trap: Private Leverage To Hinder Bank Loan Growthhttps://t.co/3Y2Oxwy2bL — Eric Basmajian (@EPBResearch) August 4, 2021 No need to comment this one 🤌 …

ROARING 20S: Bitcoin traders using up to 100-to‑1 leverage!

May 26, 2021 10:47 am

Traders taking excessive risk in the bitcoin market being forced to sell when the price goes down were the bigger culprits for last week’s 30% drop in bitcoin prices, according to analysts. Bitcoin traders liquidated roughly $12 billion in levered …

Leverage will Create the Largest Global Financial Crisis in History

April 23, 2021 9:28 amApril 22, 2021 10:02 am

David Hunter on Palisades Gold Radio Tom welcomes back experienced investment professional David Hunter of Contrarian Macro Advisors. Talking Points From This Episode Parabolic melt-up into a secular top followed by an 80% bear market Global deflationary bust followed by an inflationary …

Fed’s low interest rates subsidize hedge fund gambling… Extreme leverage in a hypervalued market is nothing to worry about?

April 6, 2021 1:20 pmApril 5, 2021 9:51 am

Feds’s low-interest rates are subsidizing hedgies gamble implosions The full postmortem on Archegos Capital won’t be written for a while, but one thing is already clear: This little-known hedge fund run by a trader named Bill Hwang has become the latest lightning …

Record valuations and leverage alone do not make a market top. Add macro timing:

April 30, 2019 6:16 pmApril 29, 2019 10:59 pm

Record valuations and leverage alone do not make a market top. Add macro timing: -Faltering consumer confidence-Liquidity drying up-Negative economic surprises-EPS growth deceleration-Yield curve inversions-Extreme VIX short-China shocks to comehttps://t.co/9DrQo35QlK — Kevin C. Smith, CFA (@crescatkevin) April 26, 2019 The …

What Deleveraging? Global Leverage Continues To Break Records

April 5, 2019 1:49 pm

by Jesse Colombo Since the end of the Great Recession, I have been warning that our economic recovery (both U.S. and global) isn’t a genuine recovery because it’s driven by debt and the inflation of new economic bubbles. I’ve been …

The Next LTCM? $8 Billion Hedge Fund Is Using 10x Leverage

February 26, 2019 8:39 am

via Zerohedge: According to some, America’s bailout culture started long before the 2008 global financial crisis, with Wall Street’s bailout of Long-Term Capital Management, an iconic hedge fund whose employee roster included a “who is who” of Nobel prize winners …

Forced End of “Ponzi-Like Leverage” & “Fraudulent Lending” Turns Australia’s House Price Bubble into “Property Bloodbath”

February 21, 2019 6:19 am

Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter What banks & housing markets in Sydney and Melbourne are facing in 2019. As investors are fleeing Australia’s housing bust, sales of new houses have plunged to record lows, and home prices in the Sydney and Melbourne metros have …

Leverage, Clean Up, Resetting The [DS] World

January 31, 2019 9:52 am

OIG find to corruption amongst two FBI officials. Trump is waiting to declas and this is the reason why, he is using it as leverage and waiting for the 1st alarm bell. Trump says if the committee is not talking …

Five Eyes Leverage – Europe Imposes Steel Tariffs on China…

January 18, 2019 8:38 pm

by sundance In November of last year the New York Post interviewed President Trump asking specifically why he was not declassifying “spygate” documents, and inquiring about the purpose for his reluctance. President Trump responded: “Maybe it’s better that the public not see what’s been …

Leverage, Timing, The Economic Patriot Plan Has Been In Plain Sight All Along

January 18, 2019 8:37 pm

Umich confidence is collapsing and the blame goes to the shutdown. China has just extended an olive branch and they will increase trade by 1 trillion during the next 6 years. Trump and the patriots have been talking about the …

“One Fund’s Instant Destruction”: 300 Clients, $80M, and Too Much Leverage = Disaster

November 20, 2018 12:49 pm

via slopeofhope: This is a cautionary tale. A tale of a fund of nearly 300 clients and nearly $80 million which blew up in the span of hours from a market move that was, in the grand scheme of things, not …

GUNDLACH: LOTS OF CORPORATE LEVERAGE, DOWNGRADES COULD BE SIGNIFICANT COME CYCLE TURN

November 14, 2018 8:44 am

GUNDLACH: LOTS OF CORPORATE LEVERAGE pic.twitter.com/7uB2M5Bo14 — Alastair (@StockBoardAsset) November 13, 2018 GUNDLACH: DOWNGRADES COULD BE SIGNIFICANT COME CYCLE TURN pic.twitter.com/5OQGP1mWXN — Alastair (@StockBoardAsset) November 13, 2018 GUNDLACH: INVESTMENT GRADE CORPORATE BONDS VALUATION HIGHEST EVER pic.twitter.com/66jdwu9OM0 — Alastair (@StockBoardAsset) November …

US stock market leverage dangerously high… Creating artificial economic growth w massive deficits debt looks good short run but creates bubbles .. see 2008

August 26, 2018 5:28 pm

https://twitter.com/OccupyWisdom/status/1033822544388935680 https://twitter.com/EconomyRealitic/status/1033802552653963264 https://twitter.com/OccupyWisdom/status/1033767021668966400 https://twitter.com/OccupyWisdom/status/1033762484497408000 WSJ: "Lenders Shunned Risky Personal Loans. Now They’re Competing for Them"https://t.co/UXOMJ5tml1 pic.twitter.com/hrLKmNE6Ta — M/1_LP (@MI_Investments) August 26, 2018

Thanks to the Fed! Leverage ratio for small cap non-financials is near all-time highs! Spread btn large & small caps is at record levels.

August 6, 2018 2:50 pm

Because of the #Fed propping up the market post-GFC (cheap money), leverage ratio for small cap non-financials is near all-time highs! Spread btn large & small caps is at record levels. And consider, the floating rates between large caps & …

US Lost “Trade War” with Japan over Autos Long Ago But Has “Better Leverage” with China: Automotive News China

July 16, 2018 5:17 pm

Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter Trade wars in the auto industry are not uncommon. It’s just that the US has lost them so far. So-called “trade wars” are neither new nor uncommon for the US and its trade “partners.” The US …

What Can Possibly Go Wrong? Buybacks Hit Record High, Corporate Leverage Hits Record High, More Than 75% Of Loans Backing CMBS Deals Are Interest-only Mortgages…

June 6, 2018 8:17 amJune 5, 2018 10:48 pm

Where we stand:– Q1 buybacks hit record high– Q1 corporate leverage hits record high https://t.co/ugsxHoDKAq pic.twitter.com/MOKvyRqCLM — zerohedge (@zerohedge) June 5, 2018 middle class — you get nothing — except, you get to watch assets that you do not own …

“Cov-Lite” Loans, Junk by Any Other Name, Dominate US Leverage Debt

April 27, 2018 4:59 pm

by goldsilver Fast and easy. This is how debt flows at the top of a cycle, at peak bubble inflation. Cov-lite loans are an excellent example of cheap, uncollateralized, highly risky debt. And their issuance, as an overall percentage of US …

IMF Warns: Global Financial System at Risk – Too Much Debt, Credit and Leverage. Sound Like Planet Ponzi!

April 24, 2018 6:10 pm

#IMF Warns: Global Financial System at Risk – Too Much Debt, Credit and Leverage. Sound Like #PlanetPonzi! https://t.co/yoDiLkZS26 pic.twitter.com/qCUeSHA6l0 — Planet Ponzi (@PlanetPonzi) April 18, 2018 The current economic environment remains favorable, but short-term risks to global financial stability have …

An Orderly Unwind of Stock Market Leverage?

April 24, 2018 1:29 pmApril 23, 2018 6:47 pm

Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter That would be a first, but it might be happening. Everything in slow motion, even market declines? There is nothing like a good shot of leverage to fire up the stock market. How much leverage …

Architectural index, Corporate leverage, Saudi oil pricing

April 19, 2018 4:27 pm

by WARREN MOSLER Muddling through at depressed levels: Saudis set price. If they decide to hike as below, it will happen: OPEC’s new price hawk Saudi Arabia seeks oil as high as $100 Apr 18 (Reuters) — Top oil exporter …