The Daily Shot Brief – May 13th, 2020



Europe: The spike in credit flows was driven by companies tapping their credit lines.

Source: Oxford Economics


China: Investors are concerned about the deluge of off-balance-sheet bonds from local governments (2 charts).

Source: @WSJ; Read full article
Source: Gavekal


And corporate bond issuance spiked as well.

Source: @DavidInglesTV


Energy: The Saudis are cutting oil output again and “encouraging” other producers to do so as well.

Source: @financialtimes; Read full article
Source: @markets; Read full article


Though, the demand loss this year has been much larger than the OPEC+ cuts.

Source: @markets; Read full article


Credit: Many leveraged loan borrowers have blown through their covenants as earnings collapse. A good percentage of them have been able to get a reprieve from their lenders, often in return for more favorable terms (such as a higher spread).

Source: @lcdnews; Read full article


Rates: The velocity of money is hitting record lows (massive amounts of liquidity but not much economic growth). Some view this trend as disinflationary.

Source: Capital Economics


Food for Thought: Working from home permanently:

Source: Deutsche Bank Research

Edited by Devon Lall

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