This is so troubling.... The credit event? Can that be crypto? Strong dollar is flashing a warning of a credit event - BofA Jul. 15, 2022 12:15 PM ETDow Jones FXCM Dollar Index (USDOLLAR)SP500, CEW, FXE, SPY The recent strength in the U.S. dollar is raising the possibility of a further shock to the economy beyond recession, according to BofA Securities. The dollar index (USDOLLAR) -0.3% is up more than 7% year to date and has broken through parity with the euro (FXE) +0.8% as the Fed remains aggressive in its tightening compared to other central banks. Emerging market currencies (CEW) +0.5% have come under extreme selling pressure and that selloff may still have more room to run, according to Wells Fargo. "In many cases, despite global equities in bear market territory and the risk of a global recession elevated, currencies have yet to approach the upper bound of their segment's potential depreciation range," economist Brenda McKenna wrote in a note Friday. A spiking greenback often portends a credit event, as it did in 1998, 2008 and 2020, BofA strategist Michael Hartnett wrote Friday in his weekly Flow Show note. An "intense central bank hiking cycle" is a risk for the current consensus of a shallow recession and "fresh, big rate hikes as central banks play catch up in coming months risks 'recession shock' morphing into credit event (as US$ heavily hints at)," Hartnett said. Liquidation, deleveraging and default risks are high in areas like private equity and venture capital (see the chart of Softbank credit default swaps at the bottom), he added. A peak in the dollar in Q3 absent a credit event is the best path for a year-end rally in distressed cyclicals, but investors have to pick which FOMC meeting (Sept. 20, Nov. 1, Dec. 13) to flip their portfolio before, Hartnett said. We "think Nov unless market melts down next 8 weeks."<---- For the broader market, BofA still says nibble at S&P 500 (SP500) (SPY) 3,600, bite at 3,300 and gorge at 3,000.
Three Arrows Capital liquidators seek to preserve hedge fund's Singapore assets - report Jul. 15, 2022 10:19 AM ET Teneo, the British Virgin Islands-based liquidator of Three Arrows Capital, is seeking to preserve the bankrupt crypto hedge fund's assets in Singapore, according to a report by the Strait Times on Friday. The move comes after Three Arrows towards the end of June was ordered to liquidate by a court in the BVI. Court-appointed Teneo has employed WongPartnership, a law firm located in Singapore, to request the country's High Court for letting Teneo manage Three Arrows's assets in the hedge fund's city-state, the Strait Times reported. If successful, Teneo would also be able to subpoena 3AC's founders Su Zhu and Kyle Davies, who have been nowhere to be found since the week ended July 8. Furthermore, if the liquidators can argue that 3AC's meltdown was a result of mismanagement or misconduct of its founders, then the asset seizure may be expedited, the local news outlet noted, citing the lawyers.
PAPA HAPPY SIGA Technologies, Inc. (SIGA) NasdaqGM - NasdaqGM Real Time Price. 14.67+1.11(+8.19%)<-------------- As of 02:04PM EDT.