Eurofaultlines

[Eurofaultlines @Eurofaultlines]

Median US IG net leverage is just under 2.5x. For European corporates, IG net leverage was 1.8x at the end '15.

[Eurofaultlines @Eurofaultlines]

P/E multiples have gone up ytd due to EPS downgrades. P/E multiples are back to the top of their historical ranges

[Eurofaultlines @Eurofaultlines]

A big gap has opened between the US Economis Surprise index and the US equity market

[Eurofaultlines @Eurofaultlines]

HFs have covered their equity shorts and have moved outright long

[Eurofaultlines @Eurofaultlines]

QE encourages national treasuries to raise the maturity-at-issuance, elevating the amount of duration sold

[Eurofaultlines @Eurofaultlines]

CDX tranches equity correlation – market pricing of default risk vs systemic risk - has fallen to multi-year lows

[Eurofaultlines @Eurofaultlines]

the trend toward a more US-like funding model is clearly underway in Europe after an acceleration in 2009.

[Eurofaultlines @Eurofaultlines]

China cement production is spiking up like in the "good old days"

[Eurofaultlines @Eurofaultlines]

China power consumption yoy moving back up to growth rates last seen in 2014

[Eurofaultlines @Eurofaultlines]

China residential real estate investments

[Eurofaultlines @Eurofaultlines]

China has stabilized. Here are Komatsu excavators operating hours, y/y by region

[Eurofaultlines @Eurofaultlines]

Japanese investors can earn 80bps of fixed yield on their JPY by buying a 10-year $ bank bond on fully hedged basis

[Eurofaultlines @Eurofaultlines]

If Japanese investors want to buy corp bonds they are forced to look overseas as their corp bond market is too small

[Eurofaultlines @Eurofaultlines]

Nikkei estimates that the top-10 Japanese Life Insurance companies alone plan to buy $46.6bn of foreign bonds in the current fiscal year

[Eurofaultlines @Eurofaultlines]

70bn of the 200bn of italian NPL are held by Intesa and Unicredit

[Eurofaultlines @Eurofaultlines]

US high grade spreads versus yields

[Eurofaultlines @Eurofaultlines]

The bulk of GPIF-related reallocation appears to have already taken place

[Eurofaultlines @Eurofaultlines]

Steel, mining and retails/wholesale - these are the risky sectors in the Chinese corporate debt segment (source IMF)

[Eurofaultlines @Eurofaultlines]

Since 2014, EM countries have issued more than €65bn of EUR sovereign bonds encouraged by the Fed/ECB divergence

[Eurofaultlines @Eurofaultlines]

Corporate Hybrids SUB/SEN ratio 6 year highs as the ECB excludes sub debt from its purchase program