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Chesapeake"Bankruptcy fears have investors fleeing the company's stock today." The shale oil industry started to exploit the easiest plots a few years ago. Now that they have to start to exploit less interesting plots with a low barrel price, fear the fall https://www.fool.com/investing/2019/11/06/heres-why-chesapeake-energy-stock-got-crushed-toda.aspx
Fears of recession, of Deutsch Bank bankruptcy, of leveraged loans CLOs defaults and oil industry fall open a new chapter of this economic period...
"Just as investment behemoth Norinchukin Bank starts to pull back on purchases of bundled leveraged loans, another Japanese lender is sizing up more." #Tampotsukibubble https://www.bloomberg.com/news/articles/2019-11-26/another-yield-starved-japanese-bank-steps-in-to-buy-u-s-clos
Too big to fail debtors? #Tampotsuki bubble https://www.businesstimes.com.sg/banking-finance/japans-appetite-for-collateralised-loan-obligations-prompts-regulators-warning-on
"“Issuance will decline from its historically high levels over the past few years, owing to investor concerns over late-cycle credit risks and high funding costs.” The problem is...50% of new issuances finance existing debts #Tampotsukibubble https://uk.reuters.com/article/clo-forecast2020/us-clo-issuance-forecast-to-fall-in-2020-as-spreads-remain-wide-idUKL1N2870GW
#Tampotsukibubble growing fears "One worry is that these borrowers could default on some part of the $3 trillion in risky borrowing" I remind that this kind of debt is not included in the QE programs.. https://qz.com/1780597/risky-leveraged-loans-risks-are-growing-regulators-warn/
"“Holy moly, €14bn is more than I thought,” a senior banker said. “It won’t all come at the same time and people have lots of money and want new supply" https://www.reuters.com/article/around-14bn-of-european-leveraged-loans/around-14bn-of-european-leveraged-loans-lined-up-for-q1-idUSL8N28Q2DF
"Of 29 regional banks that participated in the survey, 20 said they had reduced JGB holdings. Five said they had bought foreign notes with ratings at the triple B level — the lowest credit score group before junk. " https://www.japantimes.co.jp/news/2019/12/17/business/financial-markets/regional-banks-japan-riskier-debt/#.XhgiUXdFw2w
"“Smaller banks, which are experiencing big drops in profits, are desperate, and so they are taking deeper credit risks,”" Everything is said.. 2020 will be quiet, but the major part of those CLOs will reach maturity in 2022 #Tampotsukibubble
"Hungry for yields", that describes perfectly the begining of this financial decade, with never-ending QE programs https://www.reuters.com/article/japan-markets-yieldhunting/japan-investors-plan-bigger-bets-on-emerging-market-debt-in-2020-idUSL4N27V061
