India's Lehman has arrived

Discussion in 'Wall St. News' started by Stockolio, Apr 11, 2019.


    April 15th is the big day, if they really roll-over, it means total shadow banking collapse in India is at the door step and expect Oil to plummet... Two biggest consumers are India and China, both in serious limbo... Oil Plummets again, end of cycle. Oil has a fascinating bounce before every recession dating to 75

    With IL&FS collapse late last year and the shock waves it sent in India Credit Markets, it seemed it was the beginning of the system unravelling... The shadow banks, non-banking financial companies and mutual funds, which had lent money to IL&FS and Essel Group to stand have their backs broken by the massive unpaid dues. IL&FS had a debt of $13 billion when it defaulted on some of it. About 10 fund houses had lent to 16 companies belonging to Essel Group with the promoters' shares as security. To their surprise, the fund managers found out later that some of those shares were already pledged to other lenders.

    On Monday, Kotak Mutual Fund informed its investors that it would not be able to redeem the securities held by the investors because one of its loans, to the struggling Zee Group has soured. The borrower has sought additional time to repay the debt, and the investors who had trusted their savings with the fund have become collateral damage.

    HDFC Mutual Fund, the country’s largest, said it would roll over one of its fixed maturity plans, which is due for redemption on April 15. However, this financial services major that manages billions of people's wealth, has given the payment delay an ironic twist. “The purpose of rollover/ extension is due to current interest rate scenario and portfolio positioning, the yields prevailing in the short maturity bucket present an option for investors to lock in their investments at current prevailing yields,” HDFC MF told its investors.

    "Extensions are not possible unless the investors agree. Something like 75% of the investors in that particular scheme have to agree to a rollover. Otherwise a close-ended debt fund has to mature and the money has to be given," Ananth Narayan, professor of finance at SP Jain Institute of Management and Research, told a television channel.
    aqtrader, RedDuke and dealmaker like this.
  2. RedDuke


    Nothing to worry about, new Highs for stock market are coming. We are here just a bunch of idiots who think shit from China ans India will spill over.
  3. sle


    Historically, it never has though. Usually, it's the US that sneezes and everyone gets a fever, but EM troubles tend to be insulated to emerging markets (except for the cases when some not so smart Noble Prize laureates eat too much spinach)
  4. Nighthawk


    No worries, the FED guy stands by to promote QE IV, V and VI ! :D
  5. It will dramatically impact Oil Prices... India's financial collapse is really serious, they went ape shit over board in shadow banking, China's default wave currently happening is insane, PBOC will literally have to socialize the countries debt in a 24 month period, can you imagine impacts ? Real Inflation is running absolutely out of control, while companies are closing down left and right and it's been happening since 2016, how much longer can their leadership sacrifice the people's consumption ? Shadow banking in China has interest rates of 12-15 %, with no personal bankruptcy courts over there. Good friend of mine, his brother in law just came back from Shenzhen, he said the malls are empty, everyone is depressed and it's all fading in front of there eyes, that's the financial capital of China... Debt servicing has reached collapse levels in most EM's, it's not even up for debate

    People who say EM banking crises won't affect the rest of the world are delusional, especially in a debt ridden end of cycle... Those two are major purchasers of Commodities, where do you think commodities prices are headed ? It's logic... It will impact sentiment as well, Turkey is next after India

    Central Banks can keep buying Stock indexes and make it go to the moon in theory, I am not calling stock crash... All I am saying, the ripple effects of Commodities collapse will be felt in the entire world, it will affect debt servicing responsibilities, it's not rocket science
  6. This guy is a beast

  7. The U.S. stock market isn’t allowed to go down anymore.
    Any .025% dip in the indices should be bought with both hands.
    Down moves of ~1% are practically blood in the streets in the new Fed controlled Markets.

    On the accidental chance there is fluke selling like December, never fear, bear markets only last 8 hours now then it’s all clear to panic buy
    RedDuke likes this.

    Struggling Indian airline Jet Airways has canceled all its international flights, raising fears that it may be close to collapse.
    The airline said in a statement on Friday that it "has canceled its international operations from 12th to 15th April."
    All of Jet's long-haul services — including to London, Paris and Amsterdam — were suspended from Thursday night, but a spokesperson initially said earlier Friday that all long-haul flights had resumed.
  9. ironchef


    You seemed very down on India and China. I am no economist but they don't seem in that bad a shape to me?

    The tourist from China are big spenders in California, they seemed very well off and we are thankful they bring some of the U$ back to spend here helping our trade deficits.
  10. Haha...
    #10     Apr 13, 2019