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Capital Markets

• Money managers are so eager to take advantage of high yields on shorter-term debt that they may be undervaluing an unusual risk embedded in many of the bonds https://t.co/xMsrMpPb3q  I would hardly call callable bonds “quirky.” But 3NC1 bonds fit this yield curve Mar 03, 2023
• US government bonds prices have been hit by inflation & economic growth fears https://t.co/oSqaVg72y6  “It’s unlikely that an economy as levered as the US economy can take real yields like that for an extended time. At some point, the expectation is that the Fed will have to cut.” Mar 03, 2023
• @MebFaber My paternal grandpa bought CDs and rolled them in his retirement 1967-1991, my mom stayed invested in her stocks. Who won? My mom. Mar 03, 2023
• These are some of the 1980s suburban offices that back Blackstone’s mortgage-backed securities now in default https://t.co/tnXDJX9X6I  Higher rates lead to inability to refinance marginal commercial real estate debt — this time, in Finland Mar 03, 2023
• The SPAC fad is ending in a pile of bankruptcies and fire sales https://t.co/KZs7UH5gRh  A lack of focus on risk control, and the incentives of the sponsors meant that no one was really looking over the economics. I couldn’t see any value in it. Mar 01, 2023
• Oaktree Capital moves into leveraged buyout lending with $10bn fund https://t.co/A8aRrdUcFp  I respect Oaktree, but is this really the right time in the risk cycle to do this? Mar 01, 2023
• The likes of Apollo and Blackstone are seizing a once-in-a-generation opportunity as Wall Street’s leveraged finance desks reel from billions of dollars in losses on mistimed loans https://t.co/5knMymTssP  Increase of loanable money will compress spreads & misprice risk. Mar 01, 2023
• The inherent flaws of corporate bond ETFs https://t.co/MUnliZRXyv  There is a counterargument. Some market participants and academics argue that the bond ETFs more closely reflected the underlying economics of the market than did the multivariate pricing grids. Feb 28, 2023

Companies

• Tesla already uses heat-pump technology in its cars. Now Elon Musk is teasing the idea of making heat pumps for homes https://t.co/F2Q90NbCCu  Home heat pumps aren’t always effective. Mar 03, 2023
• The financial lifeline that pulled Bed Bath & Beyond from the brink of bankruptcy is already at risk because of the retailer’s tumbling stock price https://t.co/vu667fkh9g  Trying to avoid default via dilution is a ticklish business Mar 03, 2023
• https://t.co/yIx3A3qmEF  employees buying a home will soon be able to use their company shares as collateral, as part of a deal with mortgage lender https://t.co/bDkVjveM6J  https://t.co/Ruv1VkH2P0  Someone will lose as a result of this… can’t tell who yet. Mar 03, 2023
• Life insurers raised rates on policyholders. The policyholders fought back and won refunds. https://t.co/Aue1WomWPF  Insurers forget that w/nonguaranteed elements they can adjust interest rates paid with impunity, but mortality charges have to be based off of experience. Mar 03, 2023
• Viatris warns it will stop selling essential drugs in UK without changes to drug pricing agreement https://t.co/Jji5Mb8V9Y  NHS not facing its limits. UK budget is strained. You can borrow money, but who will respect your creditworthiness? FD: + $VTRS Mar 03, 2023
• Scandal at South Africa’s Eskom: the CEO and the cyanide-laced coffee https://t.co/v2SUs4GQyf  Until South Africa gets rid of the corruption and crime surrounding Eskom, it will never have a stable supply of electricity Mar 02, 2023
• The used car retailer is ceasing all operations and closing its headquarters in Memphis, Tennessee https://t.co/Vhdu2P5vhb  Bad intermediate-term trends in used vehicle sales, prices, and default rates. Feb 28, 2023

Odds & Ends

• Whiskey Fungus Fed by Jack Daniel’s Encrusts a Tennessee Town https://t.co/VI2a7DjWjm  What an unusual externality. Jack Daniels should find a way to compensate those harmed, or find a way to kill the fungus. Mar 02, 2023
• Will the Harm from Baltimore’s Highway to Nowhere Ever Be Repaired? https://t.co/Ikca1ej12Q  Half-doing it was worse than doing it, or not doing it. We ended up with the worst of all worlds, but that’s just Baltimore. Bad political culture leads to very bad outcomes Mar 02, 2023
• Some businesses have been told to remove certain adjustments in future financial statements to avoid violating rules against individually tailored metrics https://t.co/xBI9coSxSD  The PCAOB could write a “principles” document to show in theory how non-GAAP earnings should work Feb 28, 2023

Railroads

• Was Greece’s train crash that killed 57 people caused by more than “human error”? https://t.co/ECPZdEayAP  Article goes into neglect of rail infrastructure Mar 03, 2023
• Railroads aren’t the only ones that bear responsibility for making sure that train cars are fit to ferry cargo, @blsuth says. Most of them are privately owned by shippers, lessors and investors https://t.co/I0j2cy48dC  Some private railcar owner might have to share in the damages Mar 03, 2023

Culture

• Homicides were down in the US in 2022 and continue to fall in the biggest cities. The cause of the spike is still being determined, @foxjust says https://t.co/nryomAR3IZ  It helps to factor in % of population that is male, 15-30 years old. Mar 03, 2023
• Inside the tawdry, drug-fueled, violent world of America’s top life insurance salesmen https://t.co/WqToefmoUh  They aren’t the top. They are just a backwater for a bunch of frauds. Aberrant companies like Globe Life $GL, that tolerate such malfeasance will lose to short-sellers Feb 28, 2023

Deflation

• Rent declines in major US metro areas signal tenants may be maxed out on how much income they can devote to housing https://t.co/e588CD8iKt  Good for renters & probably a good leading indicator on inflation Feb 28, 2023
• Heard on the Street: Previously red-hot prices for cobalt and lithium are suddenly slumping https://t.co/dYhKcRfJRU  The cure for high prices is high prices. Feb 28, 2023