Your Evening Briefing: The year is only three months old, but already there have been two blowups on Wall Street. First came GameStop, now comes the margin call meltdown t.co/2y3rTNi32g
— Bloomberg Markets (@markets) March 31, 2021
$SPX near the top?? pic.twitter.com/Yl41i044mc
— VIX Squared (@vixsquared) March 30, 2021
Complacent bulls keep ignoring $DXY, 10Y, and $WTI.
S&P 500 -0.6%.
Even grandma next door is talking about 4000 on SPX.
This was fun. 3920 breaks and we go for 3840. t.co/swmxpQCTDa pic.twitter.com/RMp8SJ75T3
— HOZ (@MFHoz) March 30, 2021
The selloff in Treasuries is gaining steam, with 10-year yields now the highest since January 2020. The Archegos blowup seems fairly contained, but there's concern that rising yields will prompt a wider pullback from risk that'll squeeze other highly leveraged traders. pic.twitter.com/m5fLeUEd2x
— Lisa Abramowicz (@lisaabramowicz1) March 30, 2021
if CBS Viacom stock can unwind 35% in 1 afternoon, a similar margin call in crypto could vaporize "$1 trillion of market cap" in less time
— Greg Wester (@gwestr) March 30, 2021
SRVIX (Interest Rate Swap Volatility Index) vs MOVE (U.S. interest rate volatility) vs VIX
Nothing to see here… pic.twitter.com/RxHpAHfJwl
— Michael Goodwell (@MichaelGoodwell) March 30, 2021
$ndx in the middle of nowhere but a little more bearish pic.twitter.com/2SnpzaG1hY
— VIX Squared (@vixsquared) March 30, 2021
We're in my favorite part now.
Where things have clearly changed but the old narrative is still around, and gets more insistent and even louder.
It's a calm time, a nice time to be enjoyed with a faint sense of nostalgia.
Soon the narrative will snap and after that, the panic. pic.twitter.com/yLSXEkevQ0
— Travis Kimmel, Earl of Crayon (@coloradotravis) March 30, 2021
The asshole class keeps telling us yields are too high – almost back to the 2009 lows.
Bulls worried about the economy overheating should be worried about the stonk market overheating.
That's what's primed to explode. pic.twitter.com/WwfDpU2vi7
— Mac10 (@SuburbanDrone) March 30, 2021
“why is the Fed still buying MBS? As home price changes are not included in either CPI or PCE..inflation is real for those looking to buy a home,” “The Fed again is responsible for pricing out first-time buyers.”@pboockvar
*The Fed mucks with everything. Too big too fail. t.co/beg3fD1NYG
— Sven Henrich (@NorthmanTrader) March 30, 2021
Home Prices Rise at Fastest Pace in 15 Years
Powell wants inflation. He cannot see what is right in front of his nose.
Home prices are up over 11% year-over-year. But the Fed does not consider home prices as inflation.t.co/nS793IHEkF
— Mike "Mish" Shedlock (@MishGEA) March 30, 2021
There are about 10,000 hedge funds out there. How many Big Swingin' Huangs are waiting to decimate the system?
— Dave Collum (@DavidBCollum) March 30, 2021
Goldman prime brokerage risk guy at meeting with other prime brokers, after he finds out their positions: pic.twitter.com/CN35E1FpPM
— Ivan the K™ (@IvanTheK) March 30, 2021
Billions in Secretive Derivatives at Center of Hedge Fund Blowup
The forced liquidation of more than $20 billion in holdings linked to Bill Hwang’s investment firm is drawing attention to the covert financial instruments he used to build large stakes in companies.
Much of the leverage used by Hwang’s Archegos Capital Management was provided by banks including Nomura Holdings Inc. and Credit Suisse Group AG through swaps and so-called contracts-for-difference, according to people with direct knowledge of the deals. It means Archegos may never actually have owned most of the underlying securities — if any at all.