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03 August 2021
13:36 hour

"the real risk for stock market lies on credit spreads" what does this mean?

Reddit Stocks

04/03/2021 - 10:30

When I read opinions of stock market analysts, most of them always say that we don't have to focus too much on treasury yields because the real risk for stock market lies on the corporate credit market and credit spreads. Im not that familiar on what those credit spreads are and how they affect stocks, can someone explain in detail? i've been also reading about it and they say that corporate credit market imploded last march 2020 which is why the stock market collapsed too, until the fed illegally provided liquidity facilities for corporate credits, what exactly happened out there in corporate credits back in march 2020? i cant really understand well on how the mechanics of those credit spreads works i hope someone can help. thanks in advance for those who will explain   submitted by   /u/patay_na_daga [link]   [comments]


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  35. Which stocks will be most sensitive to a rising bond market? Something like "Rho", but for stocks (07/03/2021 - Reddit Stocks)
    As explained in this Forbes article (and many other places) as Treasury yields rise, stocks become less attractive (the "equity risk premium" decreases). However, since rising Treasury yields generally coincide with a growing economy, the lower equity risk premium is often offset by consumer demand etc driving up earnings and therefore share prices. But that boost isn't equally distributed throughout the market, so the rising bond market will affect some stocks more than others. So there are two variables to consider: sensitivity to a rising bond market and gains from near term economic growth. As I understand it, companies with valuations that are more heavily dependent on far future earnings will be most sensitive to interest rate hikes. That's because future cash flows have to be discounted more aggressively in an environment of rising Fed rates since it becomes more expensive to borrow money to make it to the horizon of profitability. So investors might be enticed away from growth stocks and into value stocks and increasingly profitable "risk-free" Treasuries. So the big question is which stocks will be most sensitive to a rising bond market? Are there technical indicators you can use to determine a stock's sensitivity to a rising bond market? High P/E would seem suspect, for example... The options greek "Rho" measures the price change for an option relative to the risk-free rate of interest... Is there something similar for stocks? That would be a freebie. And of those sensitive-to-rising-bond-market stocks, which ones stand to benefit the least from a booming economy? That gives us our trim list. I know I'm probably making this too simplistic. Would love to hear if anyone else is concerned about the prospect of a rising bond market and what you're doing about it.   submitted by   /u/mitch_feaster [link]   [comments]
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  36. Stock Market Crash due to GME? (15/02/2021 - Reddit Stock Market)
    I was thinking about the whole GameStop issue. If this stock has a huge squeeze and the price absolutely skyrockets what will happen? There is definitely something going on with this stock that is not clear. If you do your DD on other stocks and look at "Other" ownership, they vary all over (20%, 30% 80%, etc.). What I find incredibly interesting is that GME shows "Other" at 0.1%. That does not make sense. Separate discussion here: https://www.reddit.com/r/GME/comments/ljn96d/question_about_gme_retail_ownership_of_stock_big/ But for the sake of discussion and we assume that it does go to insanely high share prices, this could have a cascading effect of failures and bankruptcies throughout the market. This would affect Hedges, broker / dealers banks, etc. I feel the .GOV won't let this stock crash the entire market and step in. The big question is, what stunt will they use to step in and what would they do? I feel the hearing is buying time and there will be some form of intervention. I just don't know what they could do. I could see that they would be more likely to piss off a bunch of retail traders, rather than allow massive market instability or failure. OR, the alternate theory is the price settles in on a typical Supply & Demand curve, and does not go "Infinite," but does get extremely high. Either way, I believe someone or some .GOV will intervene to keep it from the "Infinite" price.   submitted by   /u/Dawg4923 [link]   [comments]
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  37. Key Words: Trump could make GOP stronger, or ‘he also could destroy it,’ Graham says (08/03/2021 - Market Watch)
    In an interview broadcast Sunday night on "Axios on HBO," the South Carolina Republican -- who has continued to support Trump, even after blaming him for the Jan. 6 siege of the U.S. Capitol by a pro-Trump mob -- said the former president has a "dark side" and "some magic," and he's trying to "harness the magic."
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  38. If "Everybody's a genius in a bull market," and bull markets last an average of about 3.8 years, shouldn't we be smooth sailing for a bit? (13/02/2021 - Reddit Stocks)
    I recently read that bull markets can be characterized in a variety of ways, but based on several commonly used merits, the most recent bull market lasted (a record) 11 years (from '08 until March of last year). The ensuing, relatively short-lived bear market was just around a month long before returning to bull. So, if the adage, "Everybody's a genius in a bull market," rings true, would it be reasonable to expect my recent "success" in the stock market to be extended for a few more years before seeing a critical hit on my portfolio? p.s. I'm 28 years old and been investing 7-10 months (my first few months were extremely limited)   submitted by   /u/cbantle [link]   [comments]
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  39. Anyone else hate the phrase "Let Your Winners Ride?" (26/05/2021 - Reddit Stocks)
    "Let your winners ride", well no fucking shit! If I knew they still had room to run, I wouldn't be selling them. This is easy to see after the fact when you've had a huge run up but to say "let your winners ride" when you have no idea if a stock is going up, down or sideways irks me.   submitted by   /u/Theking4545 [link]   [comments]
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  40. FTC complaints from real estate agents rising as some catch Zillow and Co selling back log of junk contacts as "hot vetted Buyer leads". Is this the hidden reason why ZG has continued to fall 10x faster than other housing stocks? What hap (10/06/2021 - Reddit Stock Market)
    This is the word from Utah where one of the USA's most desirable but most misunderstood real estate markets is located. 18,000 "Realtors" per 3 Million people (1/166 ratio), most Utah "Realtors" don't have an active license for more than two years and many never even do a transaction. (Good questions to ask when exploring that market). This makes it a prime feeding ground for Zillow and Co (also owns Trulia & Streeteasy). Would be interesting to hear from other real estate agents/brokers in other states about what leads Zillow is selling them. Apparently they lock Realtors in to 6 month contracts for $10,000-$50,000 then slowly trickle a couple dozen of these junk leads to them during that time. If this is happening nationally it might be time to short ZG...   submitted by   /u/BringATwenty [link]   [comments]
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  41. NEED SOME ADVICE FROM SOME APES!!!!! (12/04/2021 - Reddit Stock Market)
    So in NewB terms... How do I "Sell" for more than 3,000,000 per...? Any help and advice is greatly appreciated!!!!! Thank you in advance FAM!!!!! ???????????????? Was just chatting with a Webull Rep... Now from what he just told me... It is my understanding that within the Webull App/Desktop... I can only "Sell" at 3,000,000 TOPS!!!!! The Rep says that "Our current notional amount is 3,000,000"... Also says..."These orders exceeded limits and will not be accepted. The order needs to be within a reasonable range of the NBBO. It is at the discretion of the executing broker whether they want to accept or reject an order so far away from the market. Limit is currently 500% through NBBO."   submitted by   /u/Disastrous_Ad_1431 [link]   [comments]
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  42. Screener for finding emerging stocks on social media about to blow up with rising social sentiment (09/05/2021 - Reddit Stock Market)
    Hi guys I saw a screener last week and I made some modifications so it found general high potential stocks. It finds emerging stocks on social media (i.e. more mentions than usual) with rising sentiment: import requests import sentipy from sentipy.sentipy import Sentipy token = "<your app token>" key = "<your api key>" sentipy = Sentipy(token=token, key=key) metric = "RHI" limit = 96 # can be up to 96 sortData = sentipy.sort(metric, limit) trendingTickers = sortData.sort stock_list = [] for stock in trendingTickers: yf_json = requests.get(" https://query2.finance.yahoo.com/v10/finance/quoteSummary/{}?modules=summaryDetail%2CdefaultKeyStatistics%2Cprice".format(stock.ticker)).json() stock_cap = 0 try: volume = yf_json["quoteSummary"]["result"][0]["summaryDetail"]["volume"]["raw"] stock_cap = int(yf_json["quoteSummary"]["result"][0]["defaultKeyStatistics"]["enterpriseValue"]["raw"]) exchange = yf_json["quoteSummary"]["result"][0]["price"]["exchangeName"] if stock.SGP > 1.3 and stock_cap > 200000000 and volume > 500000 and exchange == "NasdaqGS" or exchange == "NYSE": stock_list.append(stock.ticker) except: pass print(stock_list) The results are: ['F', 'VAL', 'LMND', 'VALE', 'BX', 'BFLY', 'NRZ', 'ZIM', 'PG', 'UA', 'DOW', 'ACIC', 'NEE', 'NVTA', 'WPG', 'NLY', 'FVRR', 'UMC', 'SNE', 'SE', 'OSK', 'HON', 'SU', 'CHWY', 'AR', 'UI'] Please let me know what you guys think! :)   submitted by   /u/Over-Regular4856 [link]   [comments]
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  43. Stop panicking. Come up with a plan. (04/05/2021 - Reddit Stocks)
    I know some of you are tired of these "it's ok everything will be ok" posts, but the daily thread is a mess. Browsing it would make some of you think that the market is down 10%. If you're looking at your portfolio and it's really doing a number on your stomach, you need to reevaluate your positions. Maybe you took more risk than you wanted to. Maybe you put too much in a risky position. Maybe you bought into the hype. Maybe you thought with your heart and said "[insert company] will never go away so it must go up!" Well, you're here now. What's your plan? COME UP WITH A PLAN Good investors come up with plans. They don't sell on red days or green days. They sell when something happens that changes their initial reasons for buying. Are you going to hold forever? Are you selling before earnings? Are you selling if it gets to whatever price? Are you going to keep buying? You must have a plan. Once you have this plan... STICK TO THE PLAN Do not deviate. Don't say "maybe it will come back up" or "maybe it will come back down". Sticking to your plan is crucial. This is how you can manage your risk. It doesn't matter what happens in the next day or week or year. You did what you thought was the best action to take in the moment because you stuck to your plan. In time, you will tweak your plan to maximize your potential and minimize your downside. Don't look back at a position and feel great or bad. Just evaluate whether you made the right decision based on the information you were working with at the time. TAKE YOUR EMOTIONS OUT OF THE EQUATION Do you think Warren Buffett panics every time there's a red day? Absolutely not. Then why should you? If you let your emotions get the best of you, you WILL do something stupid. The stock market does not care, so why should you? There are going to many red days ahead. Are you ready for them? See you tomorrow!   submitted by   /u/Zarten [link]   [comments]
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  44. The Low Probability of Startup Success- and why you should still do it! (16/06/2021 - Financial Express)
    "Creative success lies in meeting unarticulated needs, which are generally at the edge of the system." said Karan Bajaj is an author and technology entrepreneur.
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  45. No One Knows When The Market Is At The Top (05/05/2021 - Reddit Stocks)
    As the Title Suggests, No One can accurately predict when the market is at the top or when it will crash. If people knew, they certainly wouldn't share on Reddit because they would be earning millions or billions of dollars. Timing the market is impossible and it's better to ride out the ups and downs. In many cases, most of your stock gains come from a few days of big gains. Imagine trying to time a stock and in a few days, it goes up 15%. Most of my gains have come from a few strong days. One of my favorite quote is: "The Markets Can Remain Irrational Longer Than You Can Remain Solvent". Sure the market can be "overvalued" (I am not saying it is), but the market may be like this for the next few years and stocks may keep going up. Just because you were trying to time the market, you missed out on these years of gains. Good luck investing!   submitted by   /u/moneytobemade8 [link]   [comments]
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  46. Could anyone explain how shorting works? (30/07/2021 - Reddit Stocks)
    I did something pretty risky and sorted ATVI last week as soon as I heard the news about the lawsuit they were facing. I selected "buy to open" and set the date to 06AUG. I then "sold to close" yesterday. I'm confused on a few things. Why was my position two days ago showing $18k with the stock at about $84, but I was able to sell it for just over $20k when that stock was at $87? Further, what is the difference between a short "buy to open" and "buy to close"? Similarly, how does this change when selling to open and close? Lastly, what does selecting the date do exactly? Is it setting the date for when your position will be closed? Does it affect your commission payments the farther out you set it?   submitted by   /u/babsa90 [link]   [comments]
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  47. "Best Execution" Rules - Shouldnt all brokers "see" the same slippage? (19/07/2021 - Reddit Stocks)
    My understanding of "Best Execution" is that an order should essentially be broadcasted to all Exchanges on the FIX protocol to avoid an exchange having a price discrepancy/slippage for its customers, if there is a "better" ask offer out there. ​ This happened June 4th roughly 1 hour before market close: - 1. Robinhood L2 data sees slippage take the price to a High of $14.90 - 2. Alpaca/Etrade do not "see" this price movement. - Worth noting that RH "closes" any calls ITM 1 hour before market close on fridays if the users do not have enough cash to cover their assigned Calls. After trying to further understand this, my question is Does Best execution not apply here, or does best execution not apply to ITM calls/puts being sold automatically by a broker? ​ Relevant Screenshots: https://imgur.com/a/O5V1cVz   submitted by   /u/Chuyito [link]   [comments]
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  48. Private credit is ‘solution capital’ (16/04/2021 - Financial Express)
    The main attractiveness of private credit, or direct lending to middle-market asset class, lies in its ability to be customised according to a company’s risk-return portfolio
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  49. $IVR 39 million short shares and they keep trying to push it down. They are 14% shorted as a company. Price is great and dividends pay out this month must own buy the 6th for the dividend payments. They announced. 09 cents a share. Lets take $IVR back. (01/07/2021 - Reddit Stock Market)
    ATLANTA, June 23, 2021 /PRNewswire/ -- Invesco Mortgage Capital Inc. (the "Company") (NYSE: IVR) today announced that its Board of Directors declared a quarterly dividend on shares of its common stock. ? (PRNewsfoto/Invesco Mortgage Capital Inc.) Common Stock Dividend The Company's Board of Directors declared a cash dividend of $0.09 per share of common stock for the second quarter of 2021. The dividend will be paid on July 27, 2021 to stockholders of record on July 6, 2021, with an ex-dividend date of July 2, 2021. About Invesco Mortgage Capital Inc. Invesco Mortgage Capital Inc. is a real estate investment trust that primarily focuses on investing in, financing and managing mortgage-backed securities and other mortgage-related assets. Invesco Mortgage Capital Inc. is externally managed and advised by Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), a leading independent global investment management firm. Additional information is available at www.invescomortgagecapital.com. Cautionary Notice Regarding Forward-Looking Statements This press release may include statements and information that constitute "forward-looking statements" within the meaning of the U.S. securities laws as defined in the Private Securities Litigation Reform Act of 1995, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include those related to our intention and ability to pay dividends, as well as any other statements other than statements of historical fact. The words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may," or similar expressions and future or conditional verbs such as "will," "may," "could," "should," and "would," and any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements include our views on the risk positioning of our portfolio, domestic and global market conditions (including the residential and commercial real estate market), the ongoing spread and the economic and operational impact of the COVID-19 pandemic, the market for our target assets, our financial performance, including our core earnings, economic return, comprehensive income and changes in our book value, our intention and ability to pay dividends, our ability to continue performance trends, the stability of portfolio yields, interest rates, credit spreads, prepayment trends, financing sources, cost of funds, our leverage and equity allocation. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks identified under the captions "Risk Factors," "Forward-Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K and quarterly reports on Form 10-Q, which are available on the Securities and Exchange Commission's website at www.sec.gov. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Investor Relations Contact: Jack Bateman, 404-439-3323 ? Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/invesco-mortgage-capital-inc-announces-quarterly-common-dividend-301318790.html SOURCE Invesco Mortgage Capital Inc.   submitted by   /u/AccomplishedRush4641 [link]   [comments]
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