News 

US debt hits record under Trump, Republicans mum…

“But despite faster growth, the budget deficit climbed 17 percent to $779 billion last year, the worst since 2012” writes Virginie Montet for yahoo.com. “If we don’t have a strong military, you don’t have to worry about debt, you have bigger problems,” Trump told reporters last week.The massive corporate tax cuts that Trump pushed for at the end of 2017, and the surge in spending, especially in defense, have increased the fiscal deficit for the world’s largest economy.The National Debt Clock shows the bad news about US federal borrowing, swelled…

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SoftBank’s high leverage is another warning sign on the growing corporate debt crisis

“However, one of the company’s key rating metrics, loan-to-value, has been a negative for credit rating analysts at Moodys and S&P, as reported by Bloomberg” writes Callum Burroughs for businessinsider.com. SoftBank, the giant fund behind investments including Uber, Slack, and WeWork, is under pressure from analysts with a negative sentiment on the company’s net debt and leverage.”It would be a very challenging step to upgrade this company to investment grade.”. Last month the company significantly scaled back planned investment into WeWork amid questions about the viability of the loss-making office…

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Global debt is not yet at financial crisis levels — but could be set for an explosion with China leading the way

“Global debt is at elevated levels, but isn’t high enough to draw comparisons with the 2008 financial crisis just yet” writes Callum Burroughs for businessinsider.com. The danger of not adjusting debt levels could have a severe impact on already slowing global growth. Emerging markets are seeing a boom in private sector debt Oxford Economics/Haver Analytics. Emerging markets have been the main driver of this trend with debt levels in major growing economies such as China increasing rapidly in the past decade.Since 2015, world private sector debt has risen by around…

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Markets News 

The risky ‘leveraged loan’ market just sunk to a whole new low

“The leveraged loan market just set a new record: The quality of investor protections in this market just hit a new all-time low” writes Jim Edwards for businessinsider.com. Leveraged Commentary & Data/S&P Global Market Intelligence In Europe, the situation was even worse. 87% of leveraged loans were “cov-lite.”. Leveraged Commentary & Data/S&P Global Market Intelligence Last year, $452 billion in new cov-lite issuance was added to the market.A leveraged loan is risky because it is “leveraged” against the private-equity group’s money and its ability to turn a struggling company around…

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International institutions acquired 30.7% of Egypt’s debts by end-June 2018

“Long-term external debt accounted for $69bn or 74.5% of the total external debt, whereas medium-term external debt reached $11.3bn or 12.2% and short-term external debt accounted for $12.3bn or 13.3%” writes Hossam Mounir for dailynewsegypt.com. Measuring the currency composition of Egypt’s external debt is an important indicator that sheds light on the external debt exposure, to currency markets’ volatility.International institutions account for 30.7% of Egypt’s total foreign debts by end of June 2018, according to the Central Bank of Egypt (CBE).It added that the government has alone acquired 51.4% of…

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Trump says that the US will grow its way out of the $22 trillion debt

“Instead, annual deficits and the federal debt have grown on his watch. [Opinion: As the national debt hits $22 trillion, these are the only people trying to cut spending]” reports washingtonexaminer.com. Trump claimed on the campaign trail that he would eliminate the federal debt.Debt will be as large, relative to the U.S. economy as it has ever been by 2029, according to the CBO, assuming the individual tax cuts Trump signed into law expire as expected in 2025.The CBO expects modest growth in the coming years.In an analysis released late…

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Markets News 

3 reasons why the housing market isn’t as strong as it seems

“Here are three reasons why the housing market is underperforming the broader economy: First, student debt” writes Sanjiv Das for marketwatch.com. It’s worth noting the deterioration in the housing market because of its effect on the broader economy.So, what happens in the housing market is quickly felt across our country.Accordingly, as the CEO of a large mortgage company, I would expect the housing market to be robust, given the economic backdrop.By many measures, the U.S. economy is doing extremely well — but when it comes to the nation’s housing market,…

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Amazon loaded up on low-risk government bonds last year as investors dumped tech stocks

“The category of government and agency securities includes Treasury notes, like two-year and 10-year bonds, and securities issued by government-sponsored enterprises like Fannie Mae and Freddie Mac” writes Jeniece Pettitt for cnbc.com. Amazon increased its U.S. government and agency securities holdings by a record $6.8 billion in 2018, ending the year with $11.7 billion worth of the debt, the most ever, according to the company’s annual report.That’s more than double the amount Amazon had in the previous year and the most as a percentage of total cash, equivalents and marketable…

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Feds Collect Record Individual Taxes…

“The real federal individual income tax revenues collected in calendar 2018 were $9,312,450,000 more than the real individual income tax revenues collected in calendar year 2017” writes Terence P for cnsnews.com. The previous calendar year record for federal individual income tax revenues was in 2017, when the Treasury collected $1,656,171,550,000 in individual income taxes (in constant December 2018 dollars).Even as inflation-adjusted individual income taxes increased from calendar year 2017 to calendar year 2018, total federal tax collections declined.In calendar 2017, the Treasury collected $290,978,980,000 in corporation income taxes (in constant…

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Crypto Futures News 

Proposal for ETF Following Bitcoin Futures, Sovereign Debt Withdrawn by SEC Request

“The United States (U.S.) Securities and Exchange Commission (SEC) has requested the withdrawal of a proposed exchange-traded-fund (ETF) submitted by Reality Shares ETF Trust, according to a letter published by the SEC on Feb. 12” writes Ana Alexandre for cointelegraph.com. No securities have been sold in connection with the offering of the Fund.” Reality Shares ETF Trust — which is a unit of crypto-focused fintech firm Blockforce Capital — initially filed a proposal for an ETF, that would invest in a portfolio which includes both sovereign debt instruments and Bitcoin…

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