Good question here from the Q&A section about negative yielding bonds: Hi Cullen. The Economist had a good article explaining why people buy negative yielding bonds. http://www.economist.com/blogs/economist-explains/2016/02/economist-explains-6 Do you agree with their explanation? The Economist’s explanation is a bit odd as it leaves out the main reason that someone might want to buy a negative yielding bond…
Today Incyte Corporation (INCY) announced that it will discontinue a Phase 3 trial in patients with pancreatic cancer due to insufficient efficacy. This early look occurred when the company performed an interim analysis and concluded that Jakafi did not show substantial efficacy to warrant continuation of the trial. This setback caused the stock to drop by…
GAAP Results Q4 2015 net income of $27 million, or $0.28 per share; FY 2015 net income of $169 million, or $1.74 per share Q4 2015 pre-tax income of $45 million; FY 2015 pre-tax income of $283 million Non-GAAP Results Q4 2015 Adjusted Earnings of $36 million, or $0.37 per share; FY 2015 Adjusted Earnings…
Time Inc. (TIME), the owner of Time, Fortune, and People magazines, has acquired Viant, the parent company of Myspace. Joe Ripp, chairman and CEO of Time Inc., described the acquisition as “game changing” in a press release. The financial terms of the deal were not disclosed. For Time Inc., this acquisition is all about the data….
A major central bank just made a desperate move… If you’ve been reading the Dispatch, you know we’re living through a gigantic “global monetary experiment.” In short, global central banks cut interest rates to zero to fight the 2008 financial crisis. They’ve held interest rates near zero ever since. These reckless “easy money” policies have…
The lead consensus at JP Morgan holds that the ECB will cut its deposit rate to -0.5% next month and then in June to -0.7%. European banks hold one trillion euros in non-performing loans, and Greece is once again a default threat. This is an open invitation for bank runs. A gauge of deposit outflows…
This is getting just plain nuts. Here is what Janet Yellen said today about the possibility of negative interest rates: In light of the experience of European countries and others that have gone to negative rates, we’re taking a look at them again because we would want to be prepared in the event that we needed to add…
It fascinates me how bear markets all feel alike in some ways. What I remember very clearly from the equity bear markets of 2000-2002 and 2007-2009 is that bulls wanted to bottom-tick the market at every imagined opportunity. Every “support level,” for the first half of each decline at least, saw bulls pile in as…
The Asian session had set up for big losses, but markets were able to defend against such losses even if finishing with a lower close. The S&P tagged the January low, but it’s hard to see it holding out if there’s another challenge on 1,810. The Nasdaq was able to register a higher close (although…
I use the June 2018 eurodollar futures contract as a significant benchmark in my analysis of money markets because I feel it represents a solid cross section of sometimes conflicting influences. It’s close enough to the front end as to be significant both in terms of monetary policy as a factor but far enough to…
