Monday April 25 2016 Housing and Economic stories

TOP STORIES:

SunEdison Joins Crowded List of Commodity Bankruptcies This Year - (www.bloomberg.com)  SunEdison Inc.’s liabilities of $16.1 billion makes the world’s biggest renewable energy developer the biggest bankruptcy of 2016. Here’s a review of the almost $35 billion in previous U.S. restructurings this year, according to data compiled by Bloomberg. The list is dominated by energy and commodity companies, including Peabody Energy Corp., the world’s largest independent coal company, which filed for bankruptcy April 13 listing $10.1 billion in liabilities.

Hedge Funds Endure Biggest Outflows Since 2009 in First Quarter - (www.bloomberg.com)  Hedge funds suffered the worst withdrawals last quarter since the tail-end of the financial crisis as wild swings in stocks and commodities caused losses at some of the best-known firms. Investors pulled a net $15 billion between January and March, reducing assets under management to $2.86 trillion from $2.9 trillion, Chicago-based Hedge Fund Research Inc. said Wednesday. The last time outflows were higher was in the second quarter of 2009, when $43 billion was redeemed. Clients are redeeming after many hedge funds failed to protect them during market turmoil in the second half of last year and again at the start of 2016. Managers including John Paulson, Chase Coleman, Andreas Halvorsen, Ray Dalio and Bill Ackman posted losses in some of their funds last quarter, even as global stocks edged out a small gain with dividends reinvested.

China's Stocks Tumble Most in Seven Weeks to End Trading Calm – (www.bloomberg.com)  China’s stocks sank the most in almost two months, pushing a gauge of volatility up from its lowest level this year as turnover surged. The Shanghai Composite Index dropped as much as 4.5 percent, the biggest loss since Feb. 29, before paring declines to 2.3 percent at the close. Industrial and technology companies led losses, while 13 stocks fell for each that rose. The Hang Seng China Enterprises Index retreated from a three-month high in Hong Kong. Traders struggled to explain the reason behind the sudden selloff, which isn’t an unusual occurrence in a market dominated by individual investors. Interest in mainland equities has been fading this month after March’s 12 percent surge amid concern that improving economic data will prevent the government from adding stimulus. Wei Wei, an analyst at Huaxi Securities Co. in Shanghai, says the slump is triggering concern that the panic seen at the start of the year, when the equity gauge sank 23 percent in the space of a month, could return.

China Default Chain Reaction Looms Amid 192 Day Cash Turnaround - (www.bloomberg.com)  Chinese companies have never had to wait so long to get paid, as stockpiles build and customers delay sending funds. Firms now take a record 192 days to collect payment for their goods or services from when they pay for the inputs, according to data compiled by Bloomberg on non-financial corporations traded in Shanghai and Shenzhen. The cash conversion ratio is up from 125 days five years ago. Liquidity is tightening in China after company profits declined for the first time in three years and as debtors face their hardest time ever paying interest. “The longer the cash conversion cycle, the higher the risk of corporates not having enough cash to repay their debts,” said Iris Pang, senior economist for greater China at Natixis SA in Hong Kong. “That creates a chain reaction.”

Fallen Angels Tumble at Fastest Rate Since Crisis, Moody's Says - (www.bloomberg.com) More companies lost their investment-grade ratings in the first three months of 2016 than in any full year going back to at least 2009, according to Moody’s Investors Service, and the number is only expected to increase. Of the 51 global non-financials that tumbled into junk during in the first three months of the year, 28 of the so-called fallen angels were Brazilian companies that got downgraded after the nation lost its investment-grade rating in February, according to a Wednesday note from Moody’s. In 2015, there were a total of 45 fallen angels. And, thanks to the lingering commodities rout, the ratings company expects the number of fallen angels to keep growing this year.

OTHER STORIES:

China's Economic Recovery Masking Financial Risks, Fitch Says - (www.bloomberg.com)
Soros Says China's Debt-Fueled Economy Resembles U.S. in 2007-08 - (www.bloomberg.com)

Oil Rises, Erasing Losses, as Producers Plan New Freeze Talks - (www.bloomberg.com)
Iran determined to regain oil market share, can handle low price: source - (www.reuters.com)
US banks endure biggest drop in revenues since 2011 - (www.ft.com)

ECB's Draghi Defiant After Central Bank Keeps Rates on Hold - (www.bloomberg.com)
Draghi Says Stimulus Is Working as ECB Defends Independence - (www.bloomberg.com)