February 2, 2018

Perspective

statista – The U.S. Cities With The Most Homeless People – Niall McCarthy 1/26

Worthy Insights / Opinion Pieces / Advice

FT – Short sellers eye better days after Steinhoff and Carillion wins – Miles Johnson and Robert Smith 1/31

  • “A rising tide, as the saying goes, lifts all boats. This effect, which has been played out across financial markets for several years, has inflicted pain and frustration on specialist short sellers of stocks and bonds who try and profit by betting against companies they believe harbor accounting irregularities.”
  • “But after years of frustration, some of the funds who have been doggedly shorting certain companies have been rewarded. Hedge funds that made bearish bets against the South African retailer Steinhoff International and the UK construction group Carillion saw these trades dramatically pay off as both companies collapsed under the weight of their debts.”
  • “’In the past few months there have been a number of accounting-related shorts, such as Steinhoff International and Carillion, that have been big money makers,’ says Alper Ince, an investor in hedge funds at Paamco. ‘I think there is an expectation among short sellers that we may see more of these after years of companies making big acquisitions and taking on more leverage’.”
  • “’There had been chatter about Steinhoff’s accounting for years, but being short investment grade companies has been an absolute death trade,’ says a London based credit trader. ‘It’s a bit like the old mantra ‘don’t fight the Fed’ — you can’t short investment grade bonds when you know the ECB is buying them on the other side’.”
  • “The ECB was one of the largest holders of Steinhoff’s outstanding €800m bond, owning around €100m of the debt before it sold its position entirely at a deep loss earlier this month.”

NYT – Worries Grow That the Price of Bitcoin Is Being Propped Up – Nathaniel Popper 1/31

  • “A growing number of virtual currency investors are worried that the prices of Bitcoin and other digital tokens have been artificially propped up by a widely used exchange called Bitfinex, which has a checkered history of hacks and opaque business practices.”

Markets / Economy

WSJ – Daily Shot: German 5yr Bond Yield 1/31

Energy

WSJ – Daily Shot: US Crude Oil Production 1/26

FT – Shale powers US oil output to heights of 1970 – Ed Crooks 1/31

Cryptocurrency

Bloomberg Quint – India to Curb Cryptocurrency Use While Embracing Blockchain – Anto Antony 2/1

  • “India’s government said it doesn’t consider cryptocurrencies as legal tender and will take all measures to eliminate payments using them.”

How much.net – Visualizing The Meteoric Rise of Cryptocurrency in the Past 5 Years – Raul 1/30

Reuters – South Korea says no plans to ban cryptocurrency exchanges, uncovers $600 million (in) illegal trades – Dahee Kim, Cynthia Kim 1/30

Social Media

NYT – Twitter Followers Vanish Amid Inquiries Into Fake Accounts – Nicholas Confessore, Gabriel Dance, and Rich Harris 1/31

China

FT – Distressed debt investors line up to offer HNA financing – Henny Sender and Don Weinland 1/31

  • “Chinese conglomerate seeks up to $2bn secured against Hong Kong land holdings.”

Other Interesting Links

NYT – San Francisco Will Clear Thousands of Marijuana Convictions – Timothy Williams and Thomas Fuller 1/31

  • “Thousands of people with misdemeanor convictions for marijuana possession dating back 40 years will have their criminal records cleared, the San Francisco district attorney’s office said Wednesday. San Diego is also forgiving old convictions.”

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