Professional Edition

These Charts Show How Primary Dealers Create Huge Risk as They Get Longer and Longer the Bond Market

The Primary Dealers continue to carry historically massive net long fixed income positions, purchased with debt, resulting in huge increases in leverage. They are hedging in the futures markets, and have reduced their Treasury longs a bit over the past month. But their overall net long exposure continues to grow. Here’s what history tells us…

Macro Liquidity Indicator Charts Show Rally Not Long For This World

Macro liquidity growth has slowed to a crawl. The Fed and its cohort major central banks are a negative factor on balance. But runaway financial market speculation is driving a big surge in bank lending to finance securities purchases, and that’s providing self-sustaining liquidity. But debt driven trends eventually break badly. This report looks at…

Charts Show Increased Speculative Leverage Driving Rallies in Stocks and Bonds

Meanwhile, instead of liquidating other assets to raise the cash to buy new Treasury supply, dealers and other buyers have used up cash and added to their leverage. The rally has been pushed by a massive increase in leveraged speculation. This leaves the markets increasingly vulnerable. Here’s what to look for and how to trade…

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