Lisa Abramowicz

Lisa Abramowicz


All things fixed income. Opinions mine. @BloombergRadio @Business former @gadfly https://t.co/YExR5brzUE https://t.co/oEDubcRN0q

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It's fair to question how much of this credit improvement is fundamental versus simply a byproduct of a Fed hell-bent on preventing mass defaults.

This data is important: U.S. consumer sentiment unexpectedly declined to a five-month low in early July as households grappled with higher prices. Inflation expectations rose to the highest since 2008. @TheTerminal 

More than a quarter of all retail space in Manhattan was available for rent as of the end of Q2, the highest vacancy rate in at least 10 years: Jones Lang LaSalle data

Good news for credit markets: Delta is among those looking to use incoming cash to repay pandemic-era debt. Less-good news for the economy: This shows how Covid-era debt will hang over future growth, taking money away from new investments & business.

I do wonder how deep the pain would have been if these companies had filed for bankruptcy last year, investors had suffered losses and then there was more of a clean slate to start over now....would the overall net growth have been more or less in the long run? Or the same...

Either way, it seems like the losses are being meted out very slowly on everyone, in the form of slower economic growth, rather than directed at smaller groups such as stock or bond investors.

The Fed's balance sheet rose to a new high of $8.2 trillion in the past week. Not a huge surprise, given the Fed's $120 billion in monthly debt purchases. But it's an important backdrop for central bankers' increasingly heated debate over when to taper their bond-buying program:

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Credit-rating firms are upgrading companies at the fastest pace on record.

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The measure of inflation most watched by the Fed surges to the highest since 1992. U.S. personal consumption expenditure core price index:

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Disney stops paying 100,000 workers, roughly half its workforce, even as it protects executive bonus schemes and a $1.5 billion dividend payment due in July.

Wuhan, where the global pandemic began, reported its first cluster of new infections since a strict quarantine was relaxed in early April. This highlights once again the likelihood of rolling outbreaks around the world until there's a vaccine.

The US federal minimum wage is worth 70% of what it was in 1968 and about a third of what it would be had it kept pace with productivity. This is especially relevant because in recent years, job growth has been concentrated in the lowest-paying industries.

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This is what happens when central banks squash the risk of corporate defaults by suppressing borrowing costs: the difference between junk and high-quality credit rates shrinks dramatically. The yield gap between the two is now near the smallest on record.

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German banks are essentially telling customers to take their deposits elsewhere because the firms can't afford to keep absorbing the negative interest rates they're being charged at the ECB.

"The next housing crisis is here, and this time, it’s about rentals." About half of the 43 million rental units in the U.S. are owned by small businesses that face insolvency as tenants fail to pay rent.

More than 40% of the U.S.’s 30 million small businesses could close permanently in the next six months because of the pandemic: Chamber of Commerce survey.

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