Feed aggregator

Signs of Euphoria Are So High Investors Are ‘Having a Hard Time Imagining a Decline'

IEHI News feed - Tue, 01/09/2018 - 14:34
The new year isn't even two weeks old, and already $2.1 trillion has been added to the market capitalization of global equities. The market is verging on such overbought levels that not even reliably bullish analysts can keep up with the new highs.

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"Now, we have seen a total reversal with people having a hard time even imagining how the market could decline," they wrote in a report dated Monday. "We must admit the speed and relentlessness of the move is a bit troubling."

Thank you central bank quantitative easing...

Median Family Net Worth Under 1989 Level: Debt-to-Money Worst Since 1962

IEHI News feed - Tue, 01/09/2018 - 13:19
``A greater share of Americans have more debt than money in the bank than at any point since 1962, according to Deutsche Bank economist Torsten Slok. 30.4% of US families have negative net worth despite the recovery in housing and the stock market. Median net worth is below where it was in 1989.''

Chap. 11 Bankruptcies Spike 107% from Year Ago Month

IEHI News feed - Tue, 01/09/2018 - 12:30
``In December, Chapter 11 filings soared 61% from November. This is also highly unusual, as over the prior five years, presumably the "normal times," the number of filings from November to December has fallen by an average 8.7%.''

Dimon: "I regret calling bitcoin a fraud"

IEHI News feed - Tue, 01/09/2018 - 10:42
``JPMorgan Chase CEO Jamie Dimon has walked back his criticism of bitcoin and said it's underlying technology could be useful for financial markets.''

Trump-appointed regulators reject plan to boost coal and nuclear plants

IEHI News feed - Tue, 01/09/2018 - 10:40
"The law and common sense prevailed over special interests today," John Moore, director of the Sustainable FERC Project Coalition, said in a statement. "The FERC correctly found that the Department of Energy's proposal violated the basic requirements of the Federal Power Act. Secretary Perry's plan would have subsidized coal and nuclear plants with a 90-day fuel supply yet Perry never explained why those plants were inherently more reliable or resilient."

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Perry had argued that coal and nuclear power plants would fare better in extreme weather such as the polar vortex that gripped large parts of the nation just four years ago. Yet opponents of Perry's plan said the current bout of extreme cold undercut Perry's argument as regional grids had excess power on hand and many power plants switched from natural gas to oil largely because of cheaper prices. One of the few major outages was the result of a failed transmission line that took a New England nuclear plant offline.

Credit card debt hits new record in November, raising concerns.

IEHI News feed - Tue, 01/09/2018 - 10:37
``Americans' outstanding credit card debt hit a new record in November, highlighting a more confident U.S. consumer but also flashing a warning signal of potential trouble down the road.

Revolving credit, mostly credit cards, increased by $11.2 billion to $1.023 trillion, the Federal Reserve said Monday. That nudged the figure past the $1.021 trillion highwater mark reached in April 2008, just before the housing and credit bubbles burst. Over the past year, revolving credit has surged by $55.1 billion, or 5.7%, according to the Fed and Contingent Macro Research.

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The new all-time-high for credit card debt doesn't pose the risks to the economy that existed in 2008 because incomes are higher, says UBS Credit Strategist Stephen Caprio. The ratio of credit card debt to U.S. gross domestic product is about 5%, compared with 6.5% in 2008, he says.

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Still, Caprio notes that credit card delinquencies have increased to about 7.5% from 7% a year ago, underscoring, growing stresses for low-income households in particular. While that's still below the 15% delinquency rate reached during the financial crisis and the 9% historical average, he says the increase over the past year raises some concerns

Hedge fund redemption requests lowest in a decade

IEHI News feed - Tue, 01/09/2018 - 10:26
Investor demands to pull money from hedge funds in the final weeks of 2017 were the lowest in a decade, signalling renewed confidence in the sector ahead of uncertainty over equity markets this year.

December is typically a bad month for redemption requests, as investors review returns generated by their investments over the year. But the 2017 figure was below the level of redemptions seen in that month in any of the last 10 years.

Clients sought to withdraw just 4.18% of assets in global hedge funds in December, according to the SS&C GlobeOp Forward Redemption indicator. The tool records redemption notices received each month by the hedge funds on GlobeOp's $300bn platform.

Happy times are here again!

Drop in nonbank mortgage jobs may signal market shift back to banks

National Mortgage News - Tue, 01/09/2018 - 10:23
Refinance volume fueled recent market gains by nonbank mortgage originators. But lower volume amid the shift to purchase lending has nonbanks trimming headcounts and may position banks to recapture market share.

Home prices jump in San Antonio

National Mortgage News - Tue, 01/09/2018 - 10:23
Home prices are rising much faster than incomes in San Antonio and around the U.S. — but a prominent national economist said he's confident we aren't heading into another housing bubble.

People on the move: Jan. 5

National Mortgage News - Tue, 01/09/2018 - 10:23
Mortgage industry hiring and new job appointments for the week ending Jan. 5.

LoanDepot's new joint venture to originate loans for AV Homes

National Mortgage News - Tue, 01/09/2018 - 10:23
Technology-focused mortgage lender loanDepot has created another joint venture with a homebuilder, this time with AV Homes.

Why African millennials can't get enough of Bitcoin

IEHI News feed - Tue, 01/09/2018 - 09:38
``In parts of the continent - especially commercial hubs like Lagos, Nairobi and Johannesburg - a small but growing number of people are finding that cryptocurrencies offer a cheaper solution to an expensive problem - transferring funds across borders.''

Don’t let a credit union regulator run the CFPB

National Mortgage News - Tue, 01/09/2018 - 07:20
The Trump administration should not name J. Mark McWatters as head of the consumer agency, given his lack of experience overseeing commercial banks and his leadership of the National Credit Union Administration, a cheerleader for the industry it supervises.

California considers major housing bills in 2018

National Mortgage News - Tue, 01/09/2018 - 07:20
The state's housing crisis is back on the agenda as California lawmakers return to work after a months-long recess.

Manhattan home resales drop as tax overhaul sidelines buyers

National Mortgage News - Mon, 01/08/2018 - 16:07
Manhattan home resales fell in the fourth quarter as buyers wavered ahead of the expected tax overhaul and stood firm in their refusal to overpay.

Freddie debuts another front-end risk transfer product

National Mortgage News - Mon, 01/08/2018 - 16:07
A group of reinsurers has committed to provide up to $650 million of coverage for credit risk on some $21 billion of 30-year, fixed-rate loans that the government-sponsored agency will acquire over the next two years.

For housing market, tax reform is a wrench in the works

National Mortgage News - Mon, 01/08/2018 - 16:07
The recently enacted tax reform bill is likely to encourage more consumers to rent instead of buy and tamp down the rapid rise in home prices.

New Atlanta mayor promises $1B affordable housing program

National Mortgage News - Mon, 01/08/2018 - 13:04
Mayor Keisha Bottoms said housing affordability, transparency, public safety, education, and transportation are priorities.

Toronto home prices fall for seventh month as lending tightens

National Mortgage News - Mon, 01/08/2018 - 13:04
Toronto's housing market continues to cool as prices fell last month and the supply of homes for sale spiked ahead of new stress-test rules that went into effect this week.

Millennials pay less for homes in Dayton

National Mortgage News - Mon, 01/08/2018 - 10:01
Millennials who want affordable home prices in an urban market may want to check out the Gem City.