"This Is Much Larger Than Subprime" - Here Are The Legendary Hedge Funds Fighting The Chinese Central Bank
One month ago, we first revealed that for one prominent winner from the subprime crisis, Hayman Capital's Kyle Bass, "the greatest investment opportunity right now"
is to short the Chinese Yuan: as he explained "given our views on
credit contraction in Asia, and in China in particular, let's say they
are going to go through a banking loss cycle like we went through during
the Great Financial Crisis, there's one thing that is going to happen: China is going to have to dramatically devalue its currency." He even went so far as to give a timeframe: "we think it's going to be in the next 12-18 months."
Then, during the Davos boondoggle, none other than the man who broke the Bank of England, George Soros, noted that he too is shorting the Yuan, which in turn prompted China's communist party mouthpiece, the People's Daily to officially warn Soros to back off adding in a petulant, schoolyard bully-ish voice "You Cannot Possibly Succeed, Ha, Ha." Yes, China really said that.
Then, just last week, in a sad letter in which Bill Ackman blamed everyone and everything for his pathetic performance in 2015, most notably hedge fund herding and hotels, which he was so eager to exploit on the way up with presentation-filled idea dinners, and so eager to blame for dumping his names on the way down, we found out that Ackman had also decided to put on a Yuan devaluation trade just days before the Yuan devaluation announcement (perhaps he read our post from August 8, which said that a devaluation is imminent 3 days before it was revealed):
REED MORE:http://www.zerohedge.com/news
Following
Kuroda's panic policy measures from Friday, JGB yields continue to
collapse across the curve (though notably 30Y is selling off - is
someone actually concerned about long-term survival risk?). 2Y Yields have collapsed all the way to BoJ's -10bps rate, 5Y
is plunging - now close to -9bps, and 10Y has dropped 20bps to just
over 6bps... with BofA warning a negative 10Y rate looms. However, Japan
is not having all the excitement as China's margin debt (driver of all animal spirits) dropped again today - making this the longest losing streak in history as China's stock market investors continue to leave the levered building screaming fire.
After
an almost unprecedented surge in credit (total social financing) and
over-invoicing enabled a bounce in China's PMI data in December, both
Manufacturing and Services data tumbled in January, confirming South
Korean trade data. While manufacturing continues its contraction (dropping to 49.4, the weakest since Aug 2012), it is non-manufacturing's plunge
from a one-year high "transition is happening, see" narrative to
practically the weakest print since 2008. But apart from that all that,
China is "stabilizing" according to officials.
Then, during the Davos boondoggle, none other than the man who broke the Bank of England, George Soros, noted that he too is shorting the Yuan, which in turn prompted China's communist party mouthpiece, the People's Daily to officially warn Soros to back off adding in a petulant, schoolyard bully-ish voice "You Cannot Possibly Succeed, Ha, Ha." Yes, China really said that.
Then, just last week, in a sad letter in which Bill Ackman blamed everyone and everything for his pathetic performance in 2015, most notably hedge fund herding and hotels, which he was so eager to exploit on the way up with presentation-filled idea dinners, and so eager to blame for dumping his names on the way down, we found out that Ackman had also decided to put on a Yuan devaluation trade just days before the Yuan devaluation announcement (perhaps he read our post from August 8, which said that a devaluation is imminent 3 days before it was revealed):
REED MORE:http://www.zerohedge.com/news
Japanese Bond Yields Continue To Collapse As China Margin Suffers Longest Losing Streak On Record
Submitted by Tyler Durden on 01/31/2016 - 21:43Following
Kuroda's panic policy measures from Friday, JGB yields continue to
collapse across the curve (though notably 30Y is selling off - is
someone actually concerned about long-term survival risk?). 2Y Yields have collapsed all the way to BoJ's -10bps rate, 5Y
is plunging - now close to -9bps, and 10Y has dropped 20bps to just
over 6bps... with BofA warning a negative 10Y rate looms. However, Japan
is not having all the excitement as China's margin debt (driver of all animal spirits) dropped again today - making this the longest losing streak in history as China's stock market investors continue to leave the levered building screaming fire."Stable" China's Economic Bounce Is Over: PMIs Plunge In January
Submitted by Tyler Durden on 01/31/2016 - 20:06After
an almost unprecedented surge in credit (total social financing) and
over-invoicing enabled a bounce in China's PMI data in December, both
Manufacturing and Services data tumbled in January, confirming South
Korean trade data. While manufacturing continues its contraction (dropping to 49.4, the weakest since Aug 2012), it is non-manufacturing's plunge
from a one-year high "transition is happening, see" narrative to
practically the weakest print since 2008. But apart from that all that,
China is "stabilizing" according to officials.
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