Chinese onshore stocks are trailing their US peers again after a weak economy cut short an earlier rally, while monetary easing hopes revived optimism on Wall Street https://t.co/EG1qPz4xCF ...

The Bank of England will cut interest rates twice more to 3.5% by June before monetary easing ends, the OECD said https://t.co/HVviRAAZ2p ...

The Dow Jones Industrial Average (^DJI) concluded Friday's abbreviated trading session higher, up 289.30 (0.61%) points, closing at 47716.42. This marked the fifth consecutive day of gains for Wall Street, wrapping up a volatile month on an optimistic note. The primary catalyst driving the market was escalating hopes for a Federal Reserve interest rate cut next month, reinforced by recent comments from Fed officials and stronger-than-expected economic data. Traders are now pricing in a high probability of a ...

By Ozan Ergenay LONDON (Reuters) -The U.S. dollar (DX=F) was heading for its worst weekly performance since late July on Friday as investors increasingly count on further monetary easing in December by the Federal Reserve, while Thursday's U.S. holiday ​thinned liquidity. An outage due to a cooling issue at CME Group's CyrusOne data centres halted trade on its widely-used currency platform and ‌in stock and commodity futures, though trading began to resume at 1200 GMT. "We are not expecting any signific ...

Am I going to have another busy week like last week. Can I can I just look forward to Turkey or is it going to be bumpy. We're still very much in a choppy trading environment.Because the headline we talk a lot about the Santa rally into year end, then people get optimistic. But I think what's less appreciated is that there's also a seasonal component to volatility. So you see that it generally tends to decline into the Christmas period and into the summer.Now in theory, that's a positive. I think the issue ...

Market Environment - The current trading environment is described as choppy, with volatility expected to decline into the Christmas period but not significantly until mid-December [1][2] - An excess of data is being released, and the upcoming December Fed meeting is a focal point, with uncertainty regarding potential interest rate cuts [3][4] Federal Reserve Impact - The sustainability of the recent market rally is closely tied to the Federal Reserve's actions, particularly whether they will cut rates in December [4][5] - If the Fed does not cut rates, it could negatively impact equities towards the year-end, but long-term cuts could be beneficial for the market [5][6] Inflation Concerns - The nature of inflation is crucial for equity markets; growth-driven inflation is seen as positive, while inflation without growth raises concerns [6][7] UK Budget Significance - The UK budget is highlighted as a significant event for the week, with a mix of pessimism and optimism in the market [7][8] - Previous market tests before the budget release may mitigate concerns about gilt volatility affecting broader market volatility [9]

Group 1 - Real estate stocks, particularly homebuilders, experienced an increase alongside the broader market on Friday [3] - A key Federal Reserve official indicated potential for further monetary easing, which significantly raised the likelihood of a rate cut in December [3] - The iShares U.S. Real Estate ETF saw positive movement in response to these developments [3]

Core Viewpoint - China's bond market is expected to gain momentum due to the central bank's resumption of government debt purchases, driven by weaker economic data and the need for further policy easing [1][4]. Economic Data and Trends - October's economic data revealed a deteriorating growth outlook, with industrial production growth falling short of expectations, fixed-asset investment declining, retail sales slowing for the fifth consecutive month, and persistent declines in housing prices [2]. - The yield on China's benchmark 10-year sovereign bond is projected to decrease to 1.65% or 1.7% within the year, down from the current 1.808% [1]. Policy Expectations - Analysts anticipate a 20-basis-point cut in the policy rate within the next six months to support the bond market, reflecting the urgency for monetary easing due to weak economic indicators [4]. - There are expectations for further monetary policy loosening in China, particularly in light of potential rate cuts in the US, which could align the monetary policies of both economies [3][7]. Market Performance - China's bonds had previously underperformed compared to stocks, as investor interest shifted towards riskier assets amid enthusiasm for artificial intelligence and improved Sino-US relations [5]. - The yield on 10-year debt had risen to 1.905% in September, marking a 28-basis-point increase over four months, but reversed course when the People's Bank of China resumed bond purchases after a nine-month pause [6].

Financial Data and Key Metrics Changes - For Q3 2025, the company reported investment income of $5.4 million or $0.80 per share, a slight decrease from $5.5 million in the previous quarter [16] - Total expenses remained stable at $2.4 million or $0.35 per share, consistent with the prior quarter [16] - The net investment income was $3 million or $0.44 per share, leading to a net loss of $4.3 million or $0.64 per share for the quarter [16][18] - Recurring cash flows from the CLO portfolio totaled $8.7 million or $1.28 per share, an increase from $8 million or $1.18 per share in the previous quarter [18] Business Line Data and Key Metrics Changes - The portfolio's average junior OC cushion stands at 4.5%, with deals exposed to First Brands having a slightly higher cushion of 4.6% [7] - The weighted average GAAP yield of the portfolio increased to 13.07% from 12.75% as of June 30, 2025, due to refinancing activities [12] Market Data and Key Metrics Changes - The broader CLO equity market faced headwinds, primarily due to spread tightening in the broadly syndicated loans market [6] - The company noted a significant uptick in leveraged buyout (LBO) activity, with approximately $200 billion in deals announced in 2025, surpassing the $164 billion recorded for all of 2024 [11] Company Strategy and Development Direction - The company remains focused on disciplined portfolio management and long-term total return, viewing market dislocations as opportunities [10] - The investment platform combines machine learning and natural language processing with traditional credit analysis, providing a competitive advantage in sourcing opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for CLO equity performance in a gradually easing monetary environment, anticipating that lower rates will stimulate LBO activity and improve corporate refinancing conditions [11][21] - The company believes that CLOs provide an efficient way to access senior secured corporate loans and can offer an attractive risk-return profile across various credit cycles [21] Other Important Information - As of September 30, 2025, total assets were $157.5 million, and total net assets were $114.9 million, resulting in a net asset value per share of $16.89 [18] - The company has started to utilize its at-the-market (ATM) equity issuance program, issuing approximately 26,600 shares for net proceeds of about $400,000 [19] Q&A Session Summary Question: Insights on the primary CLO market and investment opportunities - Management indicated that the primary CLO equity market currently offers inadequate arbitrage returns for large-scale participation, with expected returns in the 10% to 12% range, while the secondary market presents more attractive opportunities [23][24] Question: Impact of resets and refinancings on expected yields - Management preferred not to comment on intra-quarter activities but confirmed that recent resets and refinancings contributed positively to yields [26][27] Question: Mix of opportunities between U.S. and European CLOs - The majority of the portfolio is focused on the U.S. CLO market, with occasional consideration of European CLOs, particularly single B positions that can provide stronger NAV protection [31][32] Question: Future ATM issuance versus share repurchase - Management is evaluating both options but considers it too early to prioritize share repurchase at this stage [33][34] Question: Potential portfolio growth and leverage management - Management stated that leverage levels are currently within the target range and will be adjusted based on market conditions and investment opportunities [35][36]

Mexico’s central bank lowered borrowing costs by a quarter point, extending its monetary easing cycle days after weak third-quarter data fueled recession fears https://t.co/KNLnxckSQU ...