Articles

Inside China’s boom in real estate borrowing

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Rising trade tensions with the US haven’t dampened the pace of dollar-denominated bond issuance by Chinese companies, particularly in the highly-leveraged property sector. In the last 12 months, real estate issuers in China have increased their outstanding debt by $38 billion, half of that in this year alone.

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Leveraging the Powell put in US M&A markets

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Warning signals multiplied in the first half of June – the US treasury curve inverted, the US-China trade war intensified, and the prospect of a very real war in the Persian Gulf pushed up oil prices. Central banks have reversed the tightening rhetoric of a few months ago, and markets are now anticipating a rate cut later this year.

That sparked a remarkable rally in stocks as investors bet that Fed chairman Jerome Powell will bail them out.

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Where would the market be without share buybacks?

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The decline in equity markets seen in the last few months would have been worse without the countervailing effect of buybacks. But by how much?

Share buybacks are an enduring part of market practice. Warren Buffett loves them. And the numbers are huge. For example, the aggregate annual figure spent on buybacks by S&P 500 companies is approaching a rate of $1 trillion, according to S&P Dow Jones Indices.

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Where would the market be without share buybacks?

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The decline in equity markets seen in the last few months would have been worse without the countervailing effect of buybacks. But by how much?

Share buybacks are an enduring part of market practice. Warren Buffett loves them. And the numbers are huge. For example, the aggregate annual figure spent on buybacks by S&P 500 companies is approaching a rate of $1 trillion, according to S&P Dow Jones Indices.

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Is size becoming a risk for S&P 500 stocks?

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During the two months before Thanksgiving, more than two trillion dollars were wiped off the S&P 500, dragged down by the technology giants whose stocks saw declines of 20 per cent or more. Until this week’s rebound, the index itself came close to being in ‘correction’ territory.

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Is size becoming a risk for S&P 500 stocks?

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During the two months before Thanksgiving, more than two trillion dollars were wiped off the S&P 500, dragged down by the technology giants whose stocks saw declines of 20 per cent or more. Until this week’s rebound, the index itself came close to being in ‘correction’ territory.

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Year of the MAGA stock

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Last week the market cap of Amazon briefly crossed the $1 trillion barrier, putting it in the rarefied company of Apple. It isn’t just the size that makes these stocks special, but also the growth.

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Year of the MAGA stock

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Last week the market cap of Amazon briefly crossed the $1 trillion barrier, putting it in the rarefied company of Apple. It isn’t just the size that makes these stocks special, but also the growth.

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Looking in SEC disclosures for the next LTCM

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This September will see two important financial crisis anniversaries. Not only will it be ten years since Lehman Brothers filed for bankruptcy, but also twenty years since the near-collapse of the hedge fund Long-Term Capital Management. Amid all the reforms to the global banking system and trading infrastructure since 2008, it’s worth asking the question: could an outsized hedge fund threaten the financial system today in the same way that LTCM did in 1998?

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Looking in SEC disclosures for the next LTCM

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This September will see two important financial crisis anniversaries. Not only will it be ten years since Lehman Brothers filed for bankruptcy, but also twenty years since the near-collapse of the hedge fund Long-Term Capital Management. Amid all the reforms to the global banking system and trading infrastructure since 2008, it’s worth asking the question: could an outsized hedge fund threaten the financial system today in the same way that LTCM did in 1998?

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