ED&F Man Capital Markets Inc. has been hit with growing demands to post more capital to cover souring hedges in its mortgage division, according to Bloomberg, citing people with knowledge of the matter. Requests are coming from central clearinghouses and exchanges, forcing the firm to put up almost $100 million on Friday alone. ED&F has […]
As volatile market conditions continue and seem to be accelerating on a daily basis, questions are being increasingly raised regarding the risks posed to investors and the relationship of margin to those risks. Investors who sign a margin agreement can borrow up to 50% of the purchase price of marginable investments (the exact amount varies […]
Moody’s is carrying out a global review of its corporate ratings in light of the coronavirus and oil price slump, with a first wave of downgrades or warnings likely in the coming days. The firm has already begun the process in a number of the hardest hit sectors such as airlines, cruise and oil firms, […]
With historically low interest rates before the recent market crash, corporate debt has skyrocketed. According to the Federal Reserve Bank of St. Louis, Nonfinancial Corporate Business Debt has eclipsed $6.5 Trillion. Low interest rates have given rise to “zombie corporations.” A “zombie corporation” only generates enough revenue to service its own debt, and as a result, […]
Boeing cash crunch is looking more serious than it was a month ago, and its credit rating has been downgraded to reflect that. S&P Ratings downgraded Boeing’s credit rating by two notches on Monday, to BBB from AA-, leaving it just two notches above junk. The analysts also left Boeing’s rating on watch for more […]