1. ‘They’re going to have some severe liquidity issues,’ said David Hitchcock, a Standard & Poor’s analyst… MLPs, which are structured to operate pipelines without paying federal income tax by passing earnings to investors, have partly been collateral damage amid 13 straight weekly declines for Standard & Poor’s 500 Index energy companies. Are they having second thoughts? August 12 – Bloomberg: “Investors sold bonds of China’s junk-rated developers with the most offshore debt after authorities devalued the yuan a second day… August 11 – Wall Street Journal (Chuin-Wei Yap and Esther Fung): “China’s yuan devaluation is likely to hit local-government financing vehicles and Chinese companies that have turned to offshore markets in the past two years to help absorb a potentially crippling level of debt. August 12 – Reuters: “Chinese steel producers have already cut export prices in response to a lower yuan, industry sources said, providing some of the first evidence of how Beijing’s devaluation will help companies in the world’s second-biggest economy boost sales.
China’s steel industry is the world’s biggest, but shrinking demand at home has forced many mills to ship record amounts abroad, with some said to be selling at a loss. Pocketing 안전카지노사이트 between the two netted hefty returns, but the era of ‘peak’ China carry looks to be coming to an end following China’s move to devalue its currency. August 2 – Financial Times (Joel Lewin): “Emerging markets have been under the cosh this year as China wobbles, the dollar rally gathers pace and falling commodity prices hit exporters. Chinese corporations have sold bonds and gotten bank loans offshore at a record pace and now are the biggest component of major fixed-income indexes in the region. August 11 – Bloomberg (Lianting Tu and Christopher Langner): “The biggest offshore borrowers in Asia are about to understand the costs of a devaluation. China’s builders with non-investment grade ratings have $28.6 billion of outstanding dollar-denominated bonds, meaning that the combined 3.5% devaluation in the yuan this week threatens to add $1 billion to their debt servicing costs.
Bankrate’s survey of jumbo mortgage borrowing costs had 30-yr fixed jumbo rates up 9 bps to 5.60% (down 60bps y-o-y). That’s because the deepening price slump is also dragging down currencies in Colombia and Chile — a swoon that’s fanning inflation and tying policy makers’ hands. The weaker yuan increases expenses for firms that have to exchange it into those currencies to pay interest and principal on offshore borrowings. If they let their currencies follow to stay competitive, they risk reviving inflation and a rush of money exiting to the U.S. August 12 – Bloomberg (Enda Curran and Sharon Chen): “Just as Asia’s central banks were bracing for an expected increase in U.S. 에볼루션카지노 s a drop of 308 billion yuan from a month earlier, based on Bloomberg calculations. Yuan positions on the balance sheet of the People’s Bank of China totaled 26.4 trillion yuan ($4.13 trillion) at the end of July… ‘The risks of such financial products are high,’ said Liu Dongliang, a senior analyst at China Merchants Bank…
All are likely to postpone these plans, analysts say… Analysts reckon Chinese luxury spending accounts for as much as 45% of the global market – up from effectively zero a decade ago. An ‘assumed rate of return’ is used to predict how much a pension has set aside to pay retirees. Also in April, Kaisa Group became the first Chinese property developer to fail to pay a coupon on its U.S. August 13 – Bloomberg (Darrell Preston): “Oregon taxpayers and retired public employees will have to dig a little deeper to pay for the state pension’s decision to be more honest about investment returns. This new dealer network will help sharpen focus on these power brands, which constitute a bulk of the sales. This board keeps the power supply except maintaining the interconnection between the machines. August 11 – Reuters (Andrew Callus): “The Chinese tourists who have become a common sight in the world’s major cities fear their wings will be clipped if Tuesday’s shock yuan devaluation develops into a deeper dent in their spending power.