Debts 02 - Govt etc (Nov 16 - Dec 24)

Re: Debts 02 - Govt, Margin etc (Nov16 - Dec18)

Postby winston » Mon May 14, 2018 8:06 am

China’s new way to kick the can down the road on government debt: longer-term bonds

Local authorities will now be allowed to issue 15- and 20-year bonds

A national audit in 2014 confirmed for the first time the size of the debt owed by local governments – 15.4 trillion yuan (US$2.42 trillion), along with 8.6 trillion yuan of contingent liabilities.

The finance ministry has scrubbed some 1,695 projects – involving 1.8 trillion yuan of planned investment – from its pool of PPP projects so far this year.


Source: SCMP

http://www.scmp.com/news/china/economy/ ... onger-term
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Re: Debts 02 - Govt, Margin etc (Nov16 - Dec18)

Postby winston » Fri Jun 29, 2018 8:28 am

Debt for US corporations tops $6 trillion

A huge $6.3 trillion in corporate debt should trouble Wall Street investors facing a stricter rate environment even as cash hoarding reaches a peak, according to S&P Global.

Speculative-grade borrowers have reached a new record-low cash-to-debt ratio of just 12 percent in 2017, below the 14 percent reported in 2008 during the Great Recession.

by Thomas Franck

Source: CNBC

https://www.cnbc.com/2018/06/27/debt-fo ... lobal.html
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Re: Debts 02 - Govt, Margin etc (Nov16 - Dec18)

Postby winston » Fri Jul 06, 2018 8:00 pm

The "day of reckoning" will soon arrive

A tidal wave of this corporate debt – a record $4 trillion – must be paid or refinanced over the next five years.

And Interest rates are rising quickly.

Companies that can barely afford to maintain their debts today – at artificially low rates – will collapse as rates go higher.

Source: Daily Wealth
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Re: Debts 02 - Govt, Margin etc (Nov16 - Dec18)

Postby winston » Sun Jul 08, 2018 7:25 am

Warning: The Next Crisis Will Be Much Worse Than the Last

by Mike DiBiase

1. These debts are now starting to come due. A tidal wave of this corporate debt – a record $4 trillion – must be paid or refinanced over the next five years. And…

2. Interest rates are rising… quickly. Companies that can barely afford to maintain their debts today – at artificially low rates – will collapse as rates go higher.


Source: Daily Wealth

http://dailytradealert.com/2018/07/07/w ... -the-last/
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Re: Debts 02 - Govt, Margin etc (Nov16 - Dec18)

Postby winston » Fri Jul 20, 2018 6:09 am

A China borrower’s US$11 billion debt pile comes crashing down

A near-doubling in size of China’s domestic bond market, now roughly US$12 trillion and the world’s third largest.


Source: SCMP

https://www.scmp.com/business/commoditi ... shing-down
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Re: Debts 02 - Govt, Margin etc (Nov16 - Dec18)

Postby winston » Sat Aug 18, 2018 8:06 am

The Looming Economic Collapse: The $250 Trillion Dollar Worldwide Debt Crisis

Source: SHTFPLAN.COM

http://www.thetradingreport.com/2018/08 ... bt-crisis/
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Re: Debts 02 - Govt, Margin etc (Nov16 - Dec18)

Postby winston » Tue Aug 28, 2018 7:07 am

How "Wealthy" Would We Be If We Stopped Borrowing Trillions Every Year?

Source: Of Two Minds

https://www.oftwominds.com/blogaug18/ho ... y8-18.htmlEmbedded videos have been disabled.
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Re: Debts 02 - Govt, Margin etc (Nov16 - Dec18)

Postby winston » Mon Sep 24, 2018 5:22 am

The next debt crisis: There's a $6.3 trillion elephant in the room

And it just might cause the next recession.

The last downturn was triggered by Wall Street and Americans accumulating too much debt — particularly in the sizzling housing market.

A decade later, it's Corporate America borrowing with gusto. Egged on by extremely low rates, US companies have piled on a record-setting $6.3 trillion of debt, according to S&P Global Ratings.

All that debt is easy to ignore right now. Default rates are minuscule. Companies are sitting on tons of cash, and their coffers are growing thanks to the soaring US economy and corporate tax cuts.

But eventually, both the economy and corporate profits will slow, leaving companies less firepower to pay down debt. And it won't be as easy to roll over the debt that's due. Debt-laden companies would be vulnerable to rising borrowing costs caused by the Federal Reserve's interest rate hikes.

If companies are stuck in a credit crunch, they will have to pull back on hiring and investment. That could be a recipe for a recession.

"Corporates, not consumers or banks, will cause [the] next recession," Michael Hartnett, Bank of America Merrill Lynch's chief investment strategist, wrote to clients on Thursday.

Corporate America's debt binge has helped finance the recovery. Companies have borrowed to open factories, buy equipment and develop products. A chunk of that debt has also gone to reward Wall Street with massive stock buybacks.

After a decade of low rates, companies have taken on more debt relative to the size of the economy than ever before. Total US business debt as a percentage of GDP is at a record high, according to David Ader of Informa Financial Intelligence.

The riskiest category of borrowers has never been more leveraged. Companies with junk credit ratings are holding a record low $8 of debt for every $1 of cash, according to S&P.

And then there are so-called zombie companies — which can't even afford interest payments, despite the strong economy and low rates.

Ben Breitholtz, data scientist at Bianco Research, found that 14% of the companies in the S&P 1500 don't have enough earnings before interest and taxes to cover interest expenses. That's above the world average of 10%.

Those zombie companies are probably cringing as central bankers slowly end the easy-money days. The Fed is expected to lift rates on Wednesday, the eighth hike since late 2015. Four more moves before the end of 2019 may be in the cards.

At the same time, the Fed is trimming its $4.5 trillion balance sheet — an experiment that could contribute to higher borrowing costs as foreign central banks follow suit and unload bonds.

Bank of America's Hartnett warned that an "aggressive" Fed in 2019 could trigger a "credit crunch" — not just in emerging markets, but in Corporate America.

Source: CNN Money
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Re: Debts 02 - Govt, Margin etc (Nov16 - Dec18)

Postby winston » Tue Nov 13, 2018 8:16 pm

Total margin debt in the U.S. is now above $650 billion.

Source: Market Watch
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Re: Debts 02 - Govt, Margin etc (Nov16 - Dec18)

Postby winston » Tue Nov 13, 2018 10:05 pm

When This Liquidity Bubble Pops, We'll Face The Biggest Crisis Yet

by John Mauldin

Over the past five years, the official deficit was reported as $2.977 trillion whereas the federal deficit grew by $4.777 trillion, meaning that 38% of the actual shortfall was hidden by our feckless leaders.

The CBO’s latest projection is we will add close to $1 trillion of debt in 2019 and over $1 trillion in 2020.

The off-budget deficits have averaged around $360 billion for the last five years, generally increasing over time.


Source: Forbes

https://www.forbes.com/sites/johnmauldi ... 71da9b3a24
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