The Daily Shot Brief – April 28th, 2020



Energy: Crude oil is under pressure again as stockpiles approach physical storage capacity globally. June WTI futures are nearing $11/bbl.

Source: Daily Shot


Will inventories exceed maximum available storage capacity?

Source: Princeton Energy Advisors


Commodities: Processing plant closures continue to wreak havoc on US meat markets.

Source: @markets; Read full article


Meat processing margins have spiked.

h/t Michael Hirtzer


Equities: Hedge funds are positioned extremely defensively, which has provided support for the rally.

Source: Deutsche Bank Research


Credit: Banks’ holdings of “safe” assets have been elevated over the past decade.

Source: @WSJ; Read full article


Since the start of the crisis, banks reduced their holdings of Treasuries (selling them to the Fed) …

Source: FRED


… and increased their cash balances (the Fed credited their reserve accounts).

Source: FRED


Rates: Here is a summary of the Fed’s new credit facilities intended to maintain the flow of credit to the US economy. Utilization has been low thus far, but the Fed is expected to ramp these up.

Source: Oxford Economics


General-collateral repo rates are now negative as the Fed floods the market with liquidity.

Source: Daily Shot


Food for Thought: Support for the government’s expanding role:

Source: @WSJ; Read full article

Edited by Devon Lall

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