Investment Markets Overview — W/E 14th August 2015

In the summer of 2007 concerns mounted over the value of sub-prime mortgage loans, where defaults were rising and led to the bankruptcy of Bear Stearns investment bank in March 2008, an institution founded in 1923. BS was heavily involved in the securitisation of mortgage-backed assets and was central to the 2007 sub-prime mortgage crisis and while the Federal reserve failed in its attempt to save the bank via an emergency loan, it was keen to re-assure the markets that the problems were contained to the sub-prime market, not the prime AAA rated sector. Within months this it was very much a prime problem as AIG, Fannie, Freddie and a rafter of other AAA rated companies were either bailed out or went into bankruptcy. Fast forward 6-years and we now have a sub-prime auto bubble which appears ready to burst where hundreds of billions of junk debt is backed by under-qualified buyers and rising default rates and have been bid ever-higher by yield hungry investors’. We should expect to hear those reassuring voices any time now, saying that the growing problems are contained and will not affect the wider markets.

14 August 15

Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

 Returning to the subject of Junk debt, the credit markets have been signalling trouble brewing for months now, as evidenced ……

Charts:
1.  Indices Weekly
2. US Wholesale Inventories V Sales
3. E-Z GDP V Greece GDP
4. $OZ Spot V OZ Trade Balance
5. Commodity YTD  Moves

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

“Don’t just Listen, Watch.

Click Here to view Details of the full version of this Newsletter which includes full text and detailed

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