Major Money Manager Braces for Bond-Market Collapse

TCW Group Inc. is taking the possibility of a bond-market selloff seriously.

So seriously that the Los Angeles-based money manager, which oversees almost $140 billion of U.S. debt, has been accumulating more and more cash in its credit funds, with the proportion rising to the highest since the 2008 crisis.

“We never realize what the tipping point is until after it happens,” said Jerry Cudzil, TCW Group’s head of U.S. credit trading. “We’re as defensive as we’ve been since pre-crisis.”

Continue reading

EU preparing for ‘state of emergency’ after Greek talks collapse

https://i0.wp.com/media.zenfs.com/en_us/News/Reuters/2015-06-15T121824Z_1006950001_LYNXMPEB5E0K5_RTROPTP_4_CBUSINESS-US-EUROZONE-GREECE.JPG

Greek Prime Minister Alexis Tsipras arrives at his office in Maximos Mansion for a governmental council in Athens June 15, 2015. REUTERS/Alkis Konstantinidis

 

ATHENS/BERLIN (Reuters) – Germany’s EU commissioner said on Monday it was time to prepare for a “state of emergency” after talks collapsed at the weekend to rescue Greece from default and ejection from the euro.

Prime Minister Alexis Tsipras ignored a litany of pleas from European leaders to act fast and instead blamed creditors for the collapse in aid-for-austerity talks, the biggest setback yet in long-running talks to secure more aid for Greece.

Athens now has just two weeks to find a way out of the impasse before it faces a 1.6 billion euro bill due to the International Monetary Fund, potentially leaving it out of cash, unable to borrow and cast out of the single currency. Continue reading

Australia for sale: Investment bankers cashing in on Tony Abbott’s infrastructure push

You don’t necessarily sell your farm to finance building a road that won’t produce revenue leading back to the very same farm that is now not yours unless times are extremely hard. This compromise of Australian national security is likely a good buying opportunity for the Chinese who would love to purchase more influence in Oceana. The implications of this will span generations — all for a short-term gain.

 

Australian Prime Minister Tony Abbott is turning out to be an investment banker’s best friend.

His center-right government is in the midst of an unprecedented push to build public infrastructure — and to finance the program, regional authorities are busy selling off state assets, creating a boon for bankers just as Australian corporate mergers and acquisitions slow. Banks including Macquarie Group Ltd., Morgan Stanley and UBS AG have been hired to sell everything from ports to electricity grids, data compiled by Bloomberg show.

Advisory fees from the biggest asset sales may reach about $100 million, almost triple the total haul for government-related work last year, estimates Jeffrey Nassof, an analyst at New York-based Freeman & Co. Continue reading