Wall Street Journal (October 2)
“The monthslong rout in global government bonds is getting messier and weirder.” For developed nations, sovereign debt had “moved broadly in tandem.” But on Thursday, “a flight to bonds considered safe drove U.S. Treasury yields lower, while those of French, Italian and Greek bonds jumped in a sudden divergence.” While this was a “reprieve of sorts for the U.S…. it was also a reminder of how extended selloffs in bonds can cause unexpected problems.” There is “a faint smell of a crisis in the making.”
Tags: Bonds, Developed nations, Divergence, Flight, France, Global, Greece, Italy, Messier, Reprieve, Rout, Selloffs, Sovereign debt, Treasury yields, U.S., Unexpected problems, Weirder
Fortune (February 16)
“Investors wobbled last week as they worked through the disruption AI is likely to cause across global industries, with further hiccups potentially bubbling through this week.” The rout spread from software to “the legal, IT, consulting and logistics sectors,” with $2 trillion “wiped off software market caps alone.” Investors appear to be abandoning “broad-stroke arguments that the efficiencies offered by AI will result in wins for the vast majority of companies.”
Tags: $2 trillion, AI, Consulting, Disruption, Efficiencies, Global industries, Investors, IT, Legal, Logistics, Market caps, Rout, Software, Wobbled
Economic Times (March 28)
Regulators suspect a single “trade on Deutsche Bank AG’s credit default swaps… fuelled a global selloff on Friday.” The roughly £5 million bet was for swaps on the bank’s junior debt. Likely due to market illiquidity, along with market jitters, the “knock-on effect was a rout that sent banking stocks tumbling, government bonds higher and CDS prices for lenders soaring.”
Tags: Bonds, CDS, Deutsche Bank, Global selloff, Illiquidity, Jitters, Junior debt, Market, Regulators, Rout, Suspect, Trade, Tumbling
Bloomberg (August 10)
“The slide in China’s currency paused this week after jawboning by the central bank,” but the rout may not be over. “The ripples of the yuan’s 4.7 percent drop this year may be just starting to spread to the country’s neighbors” such as Vietnam, where the “dong has been moving steadily closer to the edge of its 3 percent daily trading band against the dollar over the past two weeks, as traders bet on faster depreciation.” Moreover, Vietnam is only half caught up with the drop in China’s currency, “suggesting further depreciation is possible – particularly if the yuan resumes its decline.”
Tags: Central bank, China, Currency, Depreciation, Dong, Ripples, Rout, Slide, Trading band, Vietnam, Yuan
Bloomberg (May 31)
“Chinese equities are once again in the cross hairs of short sellers…. The last time bearish bets were so elevated, such pessimism proved well-founded as China’s bull market turned into a $5 trillion rout.”
Tags: Bearish, Bull market, China, Cross hairs, Equities, Pessimism, Rout, Short sellers
Bloomberg (July 7)
As bad as China’s stock market rout is, things could be even worse. “Chinese companies have found a guaranteed way to prevent investors from selling their shares: suspend trading. Almost 200 stocks halted trading after the close on Monday, bringing the total number of suspensions to 745, or 26 percent of listed firms on mainland exchanges.” Valued at $1.4 trillion, the suspended shares account for 21 percent of China’s market capitalization. “If not for the halts, a 28 percent plunge in the Shanghai Composite Index from its June 12 peak would probably be even deeper.”
Tags: China, Exchanges, Market-cap, Rout, Shanghai Composite, Stock market, Suspension, Trading
