FBI
To Probe Accounting Fraud At Multi-Billion REIT - (www.zerohedge.com)
While the Fed and the BOJ were by far the
biggest news of the past week, explicitly admitting that the world simply can
not exist without one central bank passing the monetization torch to someone
else, a surprising, and scare for its shareholders, development took place when
REIT American Realty Capital Properties, with a then-market cap of over $10
billion, announced, under the cover of the Fed ending QE3, that it had
overstated its adjusted funds from operation, a cash flow key metric used by
REITs, from the first- and second-quarters of 2014.As theWSJ reminds us, while the amount of money involved, some
$23 million, was "relatively small", the irregularities resulted in
the resignation of the company’s chief financial officer, Brian Block, and
chief accounting officer, Lisa McAlister.The result: a crash in the stock
that wiped out nearly 30% or nearly $4 billion in market cap.
Gross
Says Deflation a ‘Growing Possibility’ Threatening - (www.bloomberg.com) Bill Gross, in his second investment outlook since
joining Janus Capital Group Inc. (JNS), said deflation is a “growing possibility” as
governments worldwide are struggling to create inflation and stimulate growth. Central
banks around the world have made “a damn fine attempt” at fueling inflation,
yet their efforts have pushed up financial assets, rather than prices in the
real economy, Gross wrote in his outlook
titled “The Trouble with Porosity and Prosperity.”
Vicious
Circle of Bad Loans Ensnaring Italian Companies - (www.bloomberg.com) Italian
borrowers are becoming trapped in a vicious circle. As bank loans turn sour at
the rate of about 2 billion euros ($2.5 billion) a month, corporate lending is
dwindling to the least in more than a decade. Lenders are sitting on a total
174 billion euros of non-performing loans, an increase of 62 percent from three
years ago, according to the latest data from Bank of Italy. New corporate lending dropped in August to 21
billion euros, the lowest since at least 2003, the data show. With public debt of
more than 2 trillion euros, Italy is battling the longest economic slump since
World War II that has thrown millions of people out of work. The scarcity of
lending is spurring the European Central Bank’s asset purchase program with President Mario Draghi seeking to boost economic growth by
freeing up bank balance sheets.
Portugal
Finds Chinese Make 90% of Bids at Property Sale - (www.bloomberg.com) As
bargain-hunters waited in a packed room at a property auction in Lisbon last
month, one language dominated their chat: Mandarin. About 90 percent of the
bidders for the government-owned apartments and stores on offer were Chinese,
according to Jorge Oliveira, the official overseeing the asset sale. They ended
up acquiring more than two-thirds of the 45 properties, he said. “A Portuguese
investor bought a store to start a bakery and coffee shop, but most of the
properties went to the Chinese,” Oliveira said in an interview after the sale. Portugal
is the latest target for Chinese investors who have been acquiring buildings
around the world as China allows freer movement of funds in and out of the country.
Bonds
So Distressed Even Panic-Stricken Junk Outperforms Them - (www.bloomberg.com)
Issuers of emerging-market distressed debt missed out on a wider junk-bond
recovery in October as woes afflicting the biggest losers proved more worrisome
for investors than Ebola and global conflict. The securities fell 1.57 percent
last month, capping an 11.9 percent slump in four straight months of declines,
a Bank of America Merrill Lynch index shows. Junk bonds from developing economies gained 0.3
percent after sliding 1.6 percent in September as investors fled riskier debt,
sparking the biggest rout in 15 months. Notes of the neediest companies
continued their descent as a global glut of sugar and coal supplies put more
corporates in financial strife. While Argentina’s default and political conflicts between
Russia and Ukraine added to credit risks, volatility spiked amid forecasts the
U.S. Federal Reserve will raise interest
rates next
year after ending its asset-purchase program on Oct. 30.
Record
Short VIX Notes Is Sounding Alarm to Deutsche Bank - (www.bloomberg.com)
British Banker Charged With Murders of Two Women in Hong Kong - (www.bloomberg.com)
British Banker Charged With Murders of Two Women in Hong Kong - (www.bloomberg.com)
Sao
Paulo Retiree’s 25-Mile Water Trek Explains Bond Woes - (www.bloomberg.com)
China Expands Access to $4.3 Trillion Interbank Bond Market - (www.bloomberg.com)
China Expands Access to $4.3 Trillion Interbank Bond Market - (www.bloomberg.com)
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