What we’re reading (2/1)
“Robinhood And Citadel’s Relationship Comes Into Focus As Washington Vows To Examine Stock-Market Moves” (Washington Post). “Robinhood routes more than half of its customer orders to Citadel, by far its largest market-making partner by volume, Robinhood disclosures show. The app also works with Virtu, G1 Execution Services, Wolverine and Two Sigma.”
“GameStop Saga Heads To Netflix And The Big Screen” (Wall Street Journal). “Separate projects at Netflix Inc. and Metro-Goldwyn-Mayer Inc. are already in development about the past week on Wall Street, in which an investing-focused group on a Reddit message board banded together to boost the share prices of struggling companies such as GameStop Corp. and AMC Entertainment Holdings Inc., in the process crippling the hedge funds that had bet against them.”
“Borrowing Costs For Risky Companies Push Towards Historic Lows” (Financial Times). “The riskiest companies in the world are enjoying the benefits of the global hunt for higher returns, sending the yield on the dollar denominated debt of some of the lowest-rated businesses close to historic lows. The average yield across US triple C rated debt in the US dropped to a recent nadir of 7.6 per cent this month, closing in on its all-time low of 7.3 per cent set in 2014, according to data from Ice Data Services. The drop in yield signals a rally in price for the assets.”
“American Jobs Won’t Return To Pre-Pandemic Levels Until 2024, CBO Says” (CNN Business). “The projection shows just how long the job market still has to go to heal after suffering the steepest loss on record in April, when 20.5 million jobs evaporated and the unemployment rate shot up to 14.7% in a single month.”
“Why Now Is The Right Time To Start Investing In Whiskey” (Worth). “When markets are shaky, investors typically pour capital into ‘safe havens’—asset classes that typically hold up during turbulent times. These are the usual suspects—gold, treasury bills, reserve currencies—tried and tested with long track records and plenty of data to spill over. This exclusive club of go-to assets rarely admits new members, but could that be about to change? An unlikely contender awaits in the wings—whiskey.”
