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Investors Fleeing Junk Debt Market!
 
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Thom Hartmann comments on a Bloomberg story that says investors are rejecting junk bond deals, leaving big banks on the hook. If you liked this clip of The Thom Hartmann Program, please do us a big favor and share it with your friends... and hit that "like" button! http://www.thomhartmann.com Follow Us on Twitter: http://www.twitter.com/thom_hartmann Subscribe to The Thom Hartmann Program for more: http://www.youtube.com/subscription_center?add_user=thomhartmann
Views: 1132 Thom Hartmann Program
Important Updates: US Dollar, Stocks, Bonds-What To Watch. By Gregory Mannarino
 
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My Lions! To better help you Rip This Market To Shreds, I added a US Dollar ETF to my website. Now you can follow Stocks, Bonds, and US Dollar action all in one place. Have a look. Click here: https://www.traderschoice.net/
Views: 9274 Gregory Mannarino
What is CONTINGENT CONVERTIBLE BOND? What does CONTINGENT CONVERTIBLE BOND mean?
 
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What is CONTINGENT CONVERTIBLE BOND? What does CONTINGENT CONVERTIBLE BOND mean? CONTINGENT CONVERTIBLE BOND meaning - CONTINGENT CONVERTIBLE BOND definition - CONTINGENT CONVERTIBLE BOND explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. A contingent convertible bond (CoCo), also known as an enhanced capital note (ECN) is a fixed-income instrument that is convertible into equity if a pre-specified trigger event occurs. The concept of CoCo has been particularly discussed in the context of crisis management in the banking industry. It has been also emerging as an alternative way for keeping solvency in the insurance industry. The concept was first invented and proposed in the Harvard Law Review in 1991, following the junk bond crisis of the late 1980s. Many years later, others copied the idea as a solution for the banking industry following the great Financial Crisis of 2007-08. A contingent convertible bond is defined with two elements: the trigger and the conversion rate. While the trigger is the pre-specified event causing the conversion process, the conversion rate is the actual rate at which debt is swapped for equity. The trigger, which can be bank specific, systemic, or dual, has to be defined in a way ensuring automatic and inviolable conversion. A possibility of a dynamic sequence exists—conversion occurs at different pre-specified thresholds of the trigger event. Since the trigger can be subject to accounting or market manipulation, a commonly used measure has been the market’s measure of bank’s solvency. The design of the trigger and the conversion rate are critical in the instrument’s effectiveness. Contingent convertible bonds can take a variety of different forms such as a standby loan, a catastrophe bond, a surplus note, or a call option enhanced reverse convertible. In the context of crisis management, contingent convertible bonds have been particularly acknowledged for their potential to prevent systematic collapse of important financial institutions. If the conversion occurs promptly, a bankruptcy can be entirely prevented due to quick injection of capital which would be impossible to be obtained otherwise, either because of the market or the so-called recapitalization gridlock. In addition, due to its debt nature, a contingent convertible bond constitutes a tax shield before conversion. Hence, as compared to common equity, the cost of capital and, consequently, the cost of maintaining a risk absorbing facility are lower. In case the trigger event occurs, conversion of debt into equity drives down company’s leverage. Also, contingent debt is said to have the potential to control the principal-agent problem in a two way manner—engaging both the shareholders and the managers. The greater market discipline and more stringent corporate governance are exercised as a result of shareholders’ direct risk of stock dilution in case conversion was triggered. An argument has been made that making managers’ bonuses in a form of contingent convertible debt instruments could reduce their behavior of excessive risk taking caused by their striving to provide investors with the desired return on equity. A critical benefit of contingent convertible debt that distinguishes it from other forms of risk absorbing debt is the effect of "going concern conversion". When the trigger is well chosen, automatic conversion reduces leverages precisely when the bank faces high incentives for risk shifting. Accordingly, this feature ensures a preventive effect on endogenous risk creation, unlike any other form of bank debt. On the other hand, contingent capital in a form of convertible bonds remains a largely untested instrument causing fears as to its effects especially during periods of high market volatility and uncertainty. The appropriate specification of the trigger and the conversion rate is critical to the instrument’s effectiveness. Some argue that conversion could produce negative signaling effects leading to potential financial contagion and price manipulation. Lastly, the instrument's marketability remains doubtful.
Views: 479 The Audiopedia
Invesco Strategist Using Futures to Beat Back Bond Bubble
 
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Investors should be careful not to stretch for yield in the current low-rate environment. A multi-asset income strategy mixing yield, defense and growth is a much smarter - and safer - way to go, said Scott Wolle, CIO for the Invesco Global Asset Allocation team . Investors face difficult challenges when it comes to income with yields near historic lows even for assets that have traditionally had attractive yields like high yield bonds and emerging debt. As investors step farther out onto the risk spectrum, whether by accepting lower quality or longer duration, they are more exposed to capital losses. Many assets that currently have reasonable yields have experienced peak-to-trough losses of up to 50% or more, according to Wolle. Wolle finds it hard to see investors "doing well" in high yield bonds from here on in. The SPDR Barclays High Yield Bond ETF (JNK), for example, is up 13% year-to-date and yields only 6%. In his view, the risk/return ratio when yields are that low is simply "not worth it" on a stand-alone basis. Similarly, Wolle said REITs are having a great year, but valuations are now on the high end, while yields are on the low end. The price risk, in his view, is "awfully high." And the same goes for emerging market bonds, which have had a great run after being shunned by investors not too long ago. "It makes sense for investors to consider defense and growth as necessary complements to yield," said Wolle, who uses in his portfolio a combination of high yielding assets like junk and REITs, Treasuries for defense and equity and bond futures to decrease spread and duration risk. "While this isn't necessarily easy, we do believe it's achievable and have adopted this as a goal for our multi-asset income strategy. Like all of our strategies, we use a combination of strategic and tactical allocation to achieve our objectives." Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Vor diesen ETFs warne ich!
 
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ETFs sind bei Sparern sehr beliebt und das hat auch seinen Grund. Es gibt allerdings auch ETFs, vor denen muss man warnen. Genau das mache ich, in diesem Video. -------- ➤ Hier anmelden und jeden Mittwoch meinen Report erhalten: http://lars-erichsen.de/ ► Mein Youtube-Kanal "Tradermacher": http://youtube.com/tradermacherde ➤ Folge mir bei Facebook: https://www.facebook.com/ErichsenGeld/ ➤ Folge mir bei Twitter: https://twitter.com/Erichsen_Geld Die verwendete Musik wurde unter www.soundtaxi.net lizensiert. Ein wichtiger abschließender Hinweis: Aus rechtlichen Gründen darf ich keine individuelle Einzelberatung geben. Meine geäußerte Meinung stellt keinerlei Aufforderung zum Handeln dar. Sie ist keine Aufforderung zum Kauf oder Verkauf von Wertpapieren.
Views: 39077 Erichsen
Treasury Inflation Protected Securities
 
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In this episode Dan talks about TIPS - and the benefits TIPS can provide for investors.
Views: 135 Dan Langworthy
askSlim Market Week 08/10/18
 
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Summary: • The stock market fell last week, with the S&P 500 (SPX) down 7 points to 2833, a decline of 0.2%. • This was led by the emerging markets, whose risks came to the fore on Friday as the Turkish Lira tanked, leading to increased concern about debt repayment. • Our projection this week is for stocks to trade in a range, with risks increasing over the coming weeks as the current minor cycle continues. President Trump’s trade war continued last week, as the US Trade Representative Robert Lighthizer on Tuesday published his final list of $16 billion worth of Chinese imports to be taxed. The Chinese Ministry of Commerce responded the next day with 25% retaliatory tariffs on US imports valued at $16 billion, including automobiles and motorcycles. Yet there was little reaction in the markets, as both of these events were expected. By Friday, though, Trump had authorized an increase of tariffs on Turkish steel from 10% to 20% and from 25% to 50% on aluminum. Referring to a series of recent events, he declared, “Our relations with Turkey are not good at this time!” In response, the Turkish Lira sank a whopping 15% versus the dollar, and Turkish stocks (TUR) tanked 14%. Also declining were Russian stocks (RSX) by 3%, Chinese stocks by 1%, and the broader MSCI Emerging Markets Index (EEM) by 3%. The concern is that the trade war may not be resolved quickly and could even spread to other emerging markets, such as Thailand, Indonesia, and India. To compound this, the US dollar index was up 1.3% on the week and 9.1% from its low of the year. A rising dollar negatively impacts emerging markets, who tend to carry a high percentage of dollar denominated debt. Our approach to technical analysis uses market cycles to project price action. Our analysis of the S&P 500 (SPX) is for stocks to trade in a range, with downside risk increasing in the coming weeks as the current minor cycle comes to completion. In the meantime, we will keep an eye on the 2821 level, which is the bottom of our minor support zone. Below that, our short term cycle support is at 2798. Along with a breakdown in momentum, a move below one or both of these levels would be a bearish signal. --- Add me on twitter @askSlim Did you like this? To become a FREE askSlim member, click here: https://goo.gl/mGqbVy --- Slim's Background: Trader, analyst and mentor, Steve "Slim" Miller is an active trader in index futures, gold, silver, bonds, oil, dollar, euro, stocks and options. He is also a trader coach and hedge fund consultant. Slim looks at things differently than most market analysts. He applies his unique cycle analysis to nearly 400 widely held stocks, futures and ETFs.
Views: 1690 Steve Miller
Financial Literacy for Mining Stocks (Part II)
 
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http://www.informedtrades.com In this video I go over some key aspects of the income statement -- a statement released by companies, usually on a quarterly basis, that provides a breakdown of their income and costs. There are three key parts of the income statement focused on in this video: 1. Earnings Per Share. This is the company's profits divided by outstanding shares. It constitutes what portion of the company's profits you are buying when you buy a single share (or the company's losses if they are not profitable). Profitable companies are usually the safer bet, but of course the risk/reward principle is important here; companies that have yet to reach profitability typically offer the most potential for share price appreciation. For companies that are not yet profitable, it is important to evaluate their balance sheet to ensure that they have enough cash and low enough expenses to sustain operations until they can finance their growth off profits. 2. Earnings Growth. As income statements are issued on a quarterly basis, you can easily see how income is growing or declining (made even easier by free tools like Google Finance). Historically, companies that have growing earnings have growing share price as well. In the mining sector, growing earnings are determined by (1) the market price of the metal and (2) how much metal the company can mine and at what cost. We'll get more into the costs component of mining in future videos. 3. P/E Ratios. Personally this is one of my favorite metrics that I rely the most on. Take share price, divide it by earnings per share, and we get the P/E ratio. Currently, the average P/E ratio of the companies in the S&P 500 is about 22. If you see stocks below that that look promising, that can be a sign that the share price is low relative to the company's earnings. Conversely, during the first dot com bubble we saw the S&P 500 have an average P/E ratio of over 45. High P/E ratios suggest the company may be overvalued, or conversely, the market has high expectations for future growth. Personally, I like to focus on stocks with P/E ratios below the S&P 500. There are mining stocks that are profitable and issuing dividends with P/E ratios below 15; personally, these are of interest to me as value opportunities that have solid potential for me to buy and hold for a few years. In the next video, we'll discuss dividend yields as well as techniques for scanning for stocks. InformedTrades Gold Club: http://www.informedtrades.com/trades.php?page=goldclub-intro Trade free for 60 days with TD Ameritrade (limited time offer): http://bit.ly/y5lsg2
Views: 3003 InformedTrades
The Big Story: Edge of The Cliff | Real Vision Video
 
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Start your 14-day free trial on Real Vision. Learn how you can become a great investor: http://rvtv.io/2AxlxeA With sky-high equity valuations, economic uncertainty, plus concerns over interest rates, central bank reactions and debt, the risks are rising. With a stellar cast, featuring some of the greatest investors on the planet, The Big Story - Edge of The Cliff, examines the potential for a major market correction and what that means for investors, in a world of complacency and compressed volatility. Filmed in September 2017.
Views: 63281 Real Vision
Collapse 2016-2019: When Will the Recession Start? Deutsche Bank's Disturbing Answer! HD
 
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Collapse 2016-2019: When Will the Recession Start? Deutsche Bank's Disturbing Answer! HD This is what JPM said: "This morning's employment report also raised the recession probabilities, although for counterintuitive reasons. We do not include the payrolls number in the recession model because it is subject to larger revisions than other labor market data. But the unemployment rate enters the model in two ways. As a near-term indicator, we watch for increases in the unemployment rate that occur near the beginning of recessions. So this morning's move down in the unemployment rate lowered the recession probability in our near-term model. But we also find the level of the unemployment rate to be one of the most useful indicators ofmedium-term recession risk. So the move down in unemployment raises the model's view of the risk of economic overheating in the medium run and raises the "background risk" of recession." So we have unemployment. However, a far bigger risk to the US economy is a topic we have flagged since last fall: peak, and now sliding, profits. Because as DB's Dominic Konstam notes something every high school econ student knows, companies cutting headcount in rising numbers, while beneficial for profits at least in the short run, has negative impacts for long-run aggregate demand, to wit...
Views: 87 Phim Hay TV
Diagnosing Dividend-Paying Healthcare Stocks *** INDUSTRY FOCUS ***
 
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Understanding the anatomy of great dividend paying healthcare stocks, including what to look for and what to avoid. For our best dividend stock ideas, go to dividends.fool.com. This podcast was recorded on 11/18/2015. Imagine owning Amazon.com (up over an insane 4,000% since 2001) when Internet sales rendered big-box retailers obsolete... Now an industry 99% of us use daily is set to implode... And 3 established companies are positioned to take advantage. Click http://bit.ly/1zQXjzy for a stunning presentation. ------------------------------------------------------------------------ Subscribe to The Motley Fool's YouTube Channel: http://www.youtube.com/TheMotleyFool Or, follow our Google+ page: https://plus.google.com/+MotleyFool/posts Inside The Motley Fool: Check out our Culture Blog! http://culture.fool.com Join our Facebook community: https://www.facebook.com/themotleyfool Follow The Motley Fool on Twitter: https://twitter.com/themotleyfool
Views: 206 The Motley Fool
Hartnett: The Great Rotation
 
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The “Great Rotation.” In an exclusive interview Bank of America Merrill Lynch’s Chief Investment Strategist, Michael Hartnett describes the mega changes occurring in the global economy and what they mean for investors. WEALTHTRACK #1333 broadcast on February 03, 2017.
Views: 5460 WealthTrack
Steinbrugge Says Hedge Funds at All-Time Peak
 
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July 29 (Bloomberg) -- Don Steinbrugge, managing partner of Agecroft Partners LLC, discusses the implications of the U.S. debt limit stalemate for hedge fund markets and the outlook for the industry. Steinbrugge speaks with Lisa Murphy on Bloomberg Television's "Fast Forward." (Source: Bloomberg)
Views: 188 Bloomberg
The SHANGHAI INDEX: BULL or BEAR?
 
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While Wall Street is telling you that all is well in China, chart analysis tells a different story. The government has basically prohibited selling stocks. That makes the government virtually the only buyer of stocks. If you enjoyed the analysis in this video, make sure to get your COMPLIMENTARY copy of Bert Dohmen’s Special Report: “Will the China Crisis Infect the Globe?” Published on 9/4/2015. Click here: http://bit.ly/1FofGzu Subscribe To Bert Dohmen’s YouTube Channel: https://www.youtube.com/user/BertDohmen1?sub_confirmation=1 Sign up for Updates & Special Offers from Dohmen Capital: http://dohmencapital.com/sign-up-for-... Connect with us on LinkedIn: https://www.linkedin.com/in/BertDohmen Follow us on Twitter: https://twitter.com/BertDohmen Like us on Facebook: https://www.facebook.com/dohmencapital/ Auto generated Transcript by YouTube welcome ladies and gentlemen this is Albert domain with a chart guru let's take a look at the Shanghai Composite China's and India's rate now once again we see the Bulls China telling us that it's the start of another bull market in China the government is going to create a lot of new money which will shield the stock market and the economy in China's in great shape but let's take a look at the stock market because the chart seems to be saying something different here is the aroma from 2014 right here just wa decided June the credit crisis that was starting in china that we have been talking about certain surfacing here overnight interest rates tripled from about 7 percent to about it 24 25 percent overnight in just 11 night and that short as that the government was losing control over financial market and we said so at the time and that's when they stepped on the accelerator and we saw a big run-up in stock market by product 56 percent in one year's time to the top but it's all artificial simulation goes it eventually when it stops and adores just too much debt having been created in Chinatown margin roles were about 5 to 1 leverage which is used in the USA is 21 and that was the end they couldn't borrow any more than the sellers took over and you had this huge decline the first decline here when exactly placement which is right here and that's when the government prohibited short-selling prohibited selling of stocks by financial institutions basically it was a very stupid because if you can't sell the stock why would you buy it in the first place this circle here is where government came up with all these rules they arrested a bunch of brokers in managing directors of the largest brokerage firm for example rate in here so that kind of killed the market so at this point the only buyer that was still left was the government and then you add another decline here and now over the last month you at this rise from the bottom it's a dead cat bounce and we could see it I think going after this led here but it's problematic actually the resistance starts right here where the Shanghai index is at the present time so that's all I want to say right now basically just don't believe when they tell you everything's fine in China China is now going into a deep recession and private sector the government will of course tried to counter there was money creation possibly but a Sakura were gonna have worked in the USA and Europe they can print all the money they won but nobody is lending it out because loans are too risky to be made at the end of money gets stuck in the banks just 68 esta problem in China right now companies are losing business the imports and exports of China plunging which had testified to the weak economy and the GDP number is totally fictitious coming out of change it as a dominant signing off for now join us again next time
Views: 1070 Dohmen Capital
Trader21 - wykład prezentowany na FX Cuffs
 
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Podczas konferencji Fx Cuffs przeprowadziłem półtoragodzinną prelekcję na temat rynków akcji, obligacji, nieruchomości oraz surowców. Zaznaczyłem jak dużą rolę odgrywają banki centralne. Wskazałem również jakie aktywa mają obecnie bardzo duży potencjał inwestycyjny wobec obecnych wycen oraz te, które pozwolą na przechowanie kapitału podczas zbliżającego się kryzysu. During Fx Cuffs conference, I gave hour and a half talk about equity markets, bonds, real estate and commodities highlighting effects of interventions of central banks. I pointed out assets that have great investment potential due to their prices and can store your capital during incoming crisis. Please click "CC" for subtitles.
Views: 31341 Independent Trader
Bill Gross  Mohamed El-Erian (Part Two)
 
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Part two of Consuelo's exclusive double interview with two of the investment world?s biggest stars! Bill Gross and Mohamed El-Erian, Co-Chief Investment Officers of money management powerhouse PIMCO, sit down together to discuss outlook and strategy.
Views: 5287 WealthTrack