Lisa Abramowicz

Lisa Abramowicz

All things fixed income. Opinions mine. @BloombergRadio @Business former @gadfly

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A hint of bright news in otherwise bleak jobs data: continuing claims dropped to 21 million from nearly 26 million. How much is this due to data adjustments, & how much does this point to a people getting rehired as the U.S. economy re-opens.

Much of the money allocated to rescuing the US from Covid-19 shutdowns hasn't gotten into the economy yet. There's confusion & bickering around funds for states: Just a fraction of the Fed's lending facilities have been used:

Recent stock gains may have overshot at this point: financial executives. “I do believe jobs are going to be slower coming back than other people believe.”

Three of the 10 large, publicly-traded U.S. coal companies analyzed by S&P Global had at least a 1-in-3 probability of defaulting within two years. Only one company, Natural Resource Partners, had a one-year default probability below 10%.

Here's an argument for why the Treasury market needs structural changes to prevent more frequent bouts of market illiquidity, which would raise doubts over the haven status of the debt & make it more expensive to finance deficits: @DuffieDarrell 

U.S. investment-grade corporate bond sales are running about double 2019's pace & just crossed the $1 trillion mark.

If you're waiting for Hertz to liquidate its cars at fire sale prices, you might be waiting for a long time....

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The Fed’s balance sheet rose to $7.1 trillion this week, with holdings of corporate-debt ETFs rising to $2.98 billion as of May 26, up from $1.8 billion a week earlier. @boes_  @TheTerminal 

Russell 2000 companies saw per-share profits fall 90% from a year ago, several times more than S&P members: GS data. Still, small caps are outperforming this month. “The divergence shows what a powerful force hope has been in guiding investors lately.”


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.

The U.S. Treasury saw a 31% drop in corporate tax revenues last year, almost twice the decline official budget forecasters had predicted. Receipts were projected to rebound sharply this year, but so far they’ve only continued to fall.

Nearly a third of U.S. apartment renters didn’t pay any of their April rent during the first week of the month, new data show

China's economy is slowing more than analysts had expected on almost all fronts.

"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.

Berkshire Hathaway has been selling stocks & stockpiling even more cash. “If Buffett himself isn’t seeing opportunities, even in his own stock, what are we to think about the recent market selloff? Is it not a buying opportunity for long-term investors?”

Real estate billionaire Tom Barrack said the US commercial-mortgage market is on the brink of collapse and predicted a “domino effect” of catastrophic economic consequences if banks and government don’t take prompt action to keep borrowers from defaulting

The month of May saw the greatest volume of large U.S. bankruptcy filings since 2009.

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