News 

The bank for central banks is blaring the siren on a new debt crisis that could cause a long and painful recession

“Paulo Whitaker/Reuters Ten years after a credit crisis drowned the global economy, central bankers are worried about debt” writes Akin Oyedele for businessinsider.com. This in turn makes it more difficult for central banks to raise rates, encouraging even more borrowing, the BIS said.”While the global economy has made substantial progress post-crisis and near-term prospects are positive, the path ahead is a narrow one,” the BIS said.Global debt across governments, nonfinancial corporations and households surpassed $160 trillion as at the end of 2017, according to the BIS. The BIS placed some…

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Crypto News 

Bitbank Launches a Bitcoin Lending Service With…

“Bitbank has started its own Bitcoin borrowing program, in which the firm lets users lend a minimum of 1 bitcoin to its native Virtual Currency Lending Service” writes Jp Buntinx for livebitcoinnews.com. Japanese exchange Bitbank aims to do things a bit differently with its native Bitcoin borrowing program.A  number of exchanges are moving into the Bitcoin borrowing market, and Bitbank is one such exchange who is greatly interested in doing so.It removes the uncertain aspect from lending and borrowing cryptocurrency and aims to legitimize the business model as a whole. Source:…

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US consumer borrowing growth slows in April

“Consumer borrowing trends are closely monitored for clues they can provide about the willingness of consumers to borrow more to support their spending” writes The Associated Press for seattletimes.com. Even the modest gain in consumer credit in April was enough to push borrowing to a fresh record of $3.88 trillion on a seasonally adjusted basis.But economists are forecasting a sizable rebound in the current April-June quarter based on reports that consumer spending has picked up again after a winter slowdown. Source: seattletimes.com Share This:

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Credit cards are not dead – consumer debt slump was just a blip 

“Britons have not abandoned their debt habits, as credit card borrowing and consumer loans bounced back sharply in April” writes Tim Wallace for telegraph.co.uk. Borrowing rose by £1.8bn in April, the Bank of England said, with net credit card lending of £572m and other credit up £1.26bn.Overall consumer borrowing rose by just £400m in the month, compared with an average of £1.3bn over each of the past six months.New borrowing plunged in March with consumers taking on almost no debt. Source: telegraph.co.uk Share This:

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Finance Chiefs Keep Borrowing, Resulting in Higher Debt Levels

“In the U.S., speculative grade ratings represent 67% of issues and 38% of outstanding debt, higher than in other regions” writes Nina Trentmann Wsj for wsj.com. The default rate for speculative grade companies was 3% at the end of April, down from 3.2% in the prior month.In some sectors, including retail and high-tech industries, around 70% or more of companies are rated speculative grade instead of investment grade.This is also reflected in the rise in number of so-called fallen angels, companies that were downgraded to speculative grade from investment grade.Finance…

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Markets News Stocks 

Investors with trillions at stake are ‘gorging like pigs at the trough’ — and the smallest misstep could make a painful crash even worse

“What should be down 10% in normal markets might be down 30% in a highly levered market,” Lamensdorf said” writes Akin Oyedele for businessinsider.com. One key amber sign is that borrowing to buy stocks is at historic levels.What’s also worrying, according to Lamensdorf, is that the borrowing binge has been accompanied by a decline in savings. Source: businessinsider.com Share This:

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Budget deficit falls below pre-crisis levels in overdue success for George Osborne and Philip Hammond

“The UK budget deficit is back below its pre-financial crisis level as eight years of spending restraint and tax rises has finally paid off” writes Tim Wallace for telegraph.co.uk. Chancellor Philip Hammond and his predecessor George Osborne have battled to bring down borrowing and the deficit fell to £40.5bn in the financial year 2017-18.This is the first time annual borrowing has fallen below the £42.8bn deficit of 2007-08. Source: telegraph.co.uk Share This:

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Valeant launches $750 million bond offering, increases planned Term B loan borrowing

“The company said it is borrowing $4.565 billion in new Term B loans, more than the $3.815 billion that it previously announced” writes Ciara Linnane for marketwatch.com. Proceeds of the borrowing will be used along with cash on hand to refinance outstanding Term B loans and redeem several series of senior notes.VRX, +2.41% said Thursday it has launched a $750 million offering of senior unsecured notes due 2027 and increased the size of planned term loan borrowings. Source: marketwatch.com Share This:

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Markets News 

Dimon: Get ready for 4% yields and an uptick in market volatility

“Despite his comments on volatility and increased borrowing, Dimon said the outlook for the US economy is good at the moment” writes Finanzen Net Gmbh for businessinsider.com. The move would amount to “normalization,” as long as interest rates continue to climb and the US economy remains strong, Dimon said.US Treasury bonds are units of government debt bought by investors for a set number of years in return for interest rates which are paid to the bond holder.The yield of the bond is the amount of interest it generates for its…

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