TODAY I noted a Sell Side Firm’s global RISK appetite measure suggesting ‘more bond strength’
In the NOTHING without consequence ‘camp’, mortgage rates DROP and refi’s POP (+9% WoW) in context:
Finally, ahead of the FOMC, an open letter TO The Fed — one version suggests:
As the Millennial demographic enters the household formation sweet spot, artificially elevating home prices is not a public policy benefit. In fact, it is a public policy dyspeptic that only adds to wealth disparity...
So, an MBS TAPER not just an idea for academics but one which would provide a RATES (and global markets) DIPportunity … which was put forth here (Free Willy).
Perhaps this was / IS all about Chinese TECH (buy KWEB, so says Carter Worth) and Evergrande…
Bloomberg’s latest: Evergrande Decides Against Special Dividend in Surprise Move
…Markets were spooked last week by a loan dispute the developer had with Guangfa Bank, which led to the freezing of a $20 million deposit held by Evergrande’s main onshore subsidiary. The incident, which was later resolved, pointed to “the fragility of the company’s funding situation,” S&P said, lowering the credit rating by two notches. S&P also cited margin erosion as the developer resorts to aggressive price promotions to accelerate sales.
…The last time Evergrande doled out a special dividend, in 2018, its earnings were soaring, though bearish bets abounded then too. It has since seen annual profit drops for 2019 and 2020, with total liabilities swelling to $301 billion.