Archive for July, 2018

Alexandria Ocasio-Cortez and the Dunning-Kruger Effect

July 18, 2018 0 Comments
Alexandria Ocasio-Cortez and the Dunning-Kruger Effect

Meet Alexandria Ocasio-Cortez, the latest star of the Democrat Party. She is the front-runner for New York’s 14th District, which covers varies neighborhoods in the borough of Queens and The Bronx. What makes her so special? She has no prior political experience; not much professional experience as far as I can find; she was also […]

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Chart of the Date: Tesla’s Valuation Through Credit

July 5, 2018 0 Comments
Chart of the Date: Tesla’s Valuation Through Credit

Tesla’s 5.3% bonds due in 2025 would be five or six percentage points wider if they traded along regression of B3 and Caa1 rated automotive and industrial bonds, which is worse than the base-case scenario of two or three points wider using a 33% chance the bonds get downgraded by S&P. Technicals have been supported […]

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Chart of the Day: 3-Month Bill Bid-To-Cover Ratio Plunges

July 2, 2018 0 Comments
Chart of the Day: 3-Month Bill Bid-To-Cover Ratio Plunges

While demand for US Treasuries remains brisk at primary auctions, the same can hardly be said for the short-end of the market, where moments ago we saw what happens to auction demand in a time of rapidly rising rates. As shown in the chart above, while the yield on the 3 month Bills auctioned off […]

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Quarterly Guidance: A Relic of the Past?

July 2, 2018 0 Comments
Quarterly Guidance: A Relic of the Past?

Most publicly traded companies view quarterly guidance as necessary. We’ve always been in the habit of reporting quarterly earnings, therefore, it has turned into somewhat of a ritual. The pros and cons of quarterly earnings are discussed regularly in the investment community. The effects, however, are highly disputed. On one hand, companies use quarterly earnings […]

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