from WallStForMainSt
After taking a few months off since the first week of January 2020, #RepoMadness has returned! However, this time the problems are with US shale oil and other oil loans going bad at banks and with oil and energy over the counter (OTC) derivatives.
Oil OTC derivatives add up to between 25 and 50 times the total value of the oil upon which they are (increasingly only tangentially) based. According to the Bank of International Settlements, there’s over $1.2 trillion dollars worth of “notional amounts outstanding” energy derivatives.
“Fallen Angel” Day Arrives: $140 Billion In Energy Debt At Risk Of Imminent Downgrade To Junk https://www.zerohedge.com/markets/fal…
Fed Boosts Size Of Repo Bailout Facility For 2nd Time In A Week Following Liquidity Collapse https://www.zerohedge.com/markets/nyf…
Yesterday’s Repo Madness also started to spike but today’s increased even more! Funding Freeze Getting Worse: Dealers Demand Record $216BN In Liquidity From Fed Repo https://www.zerohedge.com/markets/fun…
US stocks are now in an official bear market down over 20% from all time highs of over 29k on the DOW and energy stocks are still in free fall. To make matters worse, OPEC’s 3rd largest producing country is also increasing production! https://oilprice.com/Energy/Crude-Oil…
Welcome to Dystopia!
Trump administration expected to seek aid for shale companies hit by oil rout https://www.cnbc.com/2020/03/10/trump…
This is probably why there was an emergency Plunge Protection Team (PPT) conference call after Monday’s stock market crash: https://www.zerohedge.com/markets/plu…
What US Banks Have The Most Energy Debt Exposure?
1) Energy-exposed banks attempt to bounce back after second punch from oil prices https://finance.yahoo.com/news/oil-pr…
2) Opinion: You should avoid shares of these banks with too much oil and gas exposure https://www.marketwatch.com/story/you…
Two Leveraged Oil Products to Shut Down in Wake of Epic Crash https://www.bloomberg.com/amp/news/ar…
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