What we’re reading (4/5)
“The US Recovery Is Speeding Up But The Global Economy Isn’t Out Of Danger” (CNN Business). “The economic recovery in the United States and China is gaining steam, triggering a wave of upgraded forecasts and optimistic commentary. Meanwhile, economists watching other parts of the world are getting worried.”
“Stocks Were The Only Major Asset Class That Gained In The First Quarter, But Bank Of America Says ‘Anemic’ Returns May Be On The Horizon” (Business Insider). “According to the firm's Sell Side Indicator, a contrarian gauge of Wall Street sentiment, optimism over the past twelve months has risen three times the typical rate following bear markets since 1985. Bank of America's sentiment indicator is now at a 10-year high and the closest it's been to a contrarian ‘sell’ signal since May 2007.”
“Risky Borrowers Are Falling Behind On Car Payments” (Wall Street Journal). “A greater share of people with low credit scores has been falling behind on their car payments in recent months, a sign of stress among consumers whose finances have been hit hard by the pandemic. Some 10.9% of subprime borrowers with outstanding auto loans or leases were more than 60 days past due in February, up from 10.7% in January and 8.7% a year prior, according to credit-reporting firm TransUnion.”
“GameStop Plans $1 Billion Stock Sale, Shares Slide” (Reuters). “[GameStop] said it would sell up to 3.5 million shares and use the proceeds to speed up the shift in its business model to e-commerce in an overhaul being led by top shareholder and board member Ryan Cohen.”
“He Built A $10 Billion Investment Firm. It Fell Apart In Days.” (New York Times). “[Bill Hwang] borrowed billions of dollars from Wall Street banks to build enormous positions in a few American and Chinese stocks. By mid-March, Mr. Hwang was the financial force behind $20 billion in shares of ViacomCBS, effectively making him the media company’s single largest institutional shareholder. But few knew about his total exposure, since the shares were mostly held through complex financial instruments, called derivatives, created by the banks.”
