What we’re reading (6/3)
“AMC Files To Sell 11 Million Shares — Stock Immediately Tanks” (CNBC). “AMC Entertainment said Thursday it plans to sell more than 11 million shares amid the trading frenzy in its stock. ‘In accordance with the terms of the Distribution Agreement, we may, through our sales agents, offer and sell from time to time up to an aggregate of 11,550,000 shares of our Class A common stock,’ AMC said in an SEC filing. Shares of AMC reversed course in premarket trading, dropping 7% after popping more than 20%.”
“Global Inflation Hasn't Been This High Since 2008” (CNN Business). “Price are rising quickly across huge swaths of the developed world, with inflation in countries that belong to the Organization for Economic Cooperation and Development surging in April to the highest rate since 2008. Energy price hikes boosted average annual inflation across OECD countries to 3.3% in April, compared with 2.4% in March, the Paris-based organization said Wednesday. That's the fastest rate since October 2008.”
“Fed To Sell Corporate Bonds And ETFs Acquired During Covid-19 Crisis” (Wall Street Journal). “The Federal Reserve will soon begin selling off the corporate bonds and exchange-traded funds it amassed last year through an emergency-lending vehicle set up to contain the Covid-19 pandemic’s economic fallout. The vehicle, known as the Secondary Market Corporate Credit Facility, or SMCCF, held $5.21 billion of bonds from companies including Whirlpool Corp. , Walmart Inc. and Visa Inc. as of April 30. In addition, it held $8.56 billion of exchange-traded funds that hold corporate debt, such as the Vanguard Short-Term Corporate Bond ETF.”
“Private Equity Bet On Troubled Caribbean Refinery Blows Up On Retirement Funds” (Reuters). “U.S. private equity firm Arclight Capital Partners LLC, which invests the retirement savings of Maine teachers, NFL football players and Mayo Clinic doctors, lost hundreds of millions of dollars betting on a troubled Caribbean oil refinery, according to sources and documents reviewed by Reuters.”
“Oh, Look, Another Doomed Proposal To Kill The Carried-Interest Loophole” (Dealbreaker). “For almost as long as this website [Dealbreaker] has been around, it has been writing about the impending death of the carried-interest loophole. It has been a priority of administrations Democratic and Republican, pretty much rhetorically in the latter case but rhetorically important, all the same, because it seems like such an obvious fix, directed as it is against rich and politically unpopular hedge and private equity fund managers to close what looks like an incredibly unjust windfall, being taxed on the money they earn for earning other people money at a much lower rate than the money earned by, say, their janitors for keeping their offices clean…[a]nd for all of that time, the carried-interest loophole survives…[a]s, we are sure, it will again, because while we were dead wrong about the last massive tax overhaul’s chances of becoming law, we’re quite sure this one is even more dead in the water.”
