energy

Lately UBS, which just announced its latest ugly quarter in which the ultra-wealthy client dependent bank saw $3.3 billion in outflows from its all important wealth-management business, has been increasingly dour on the future, whether it is warning to "Buy Gold" As Equities “Rolling Over” or explaining "How The Investment Grade Dominos Will Fall." Today, UBS' chief global credit strategist Matthew Mish takes on the pleasant topic of predicting what the next imploding "energy-like" sector in credit markets, which is particularly relevant after today's historic downgrade of several energy na

Via SRSroccoReport.com,

The U.S. Empire is in serious trouble as the collapse of its domestic shale gas production has begun.  This is just another nail in a series of nails that have been driven into the U.S. Empire coffin.

It is safe to say that nobody expected the BOJ stunner announced last night, when Kuroda announced that Japan would become the latest country to unleash negative interest rates, for one simple reason: Kuroda himself said Japan would not adopt negative rates just one week ago! However, a few BIS conference calls since then clearly changed the Japanese central banker's mind and as we wrote, and as those who are just waking up are shocked to learn, negative rates are now a reality in Japan.

As we showed previously, when it comes to banks' exposure to energy, things have gotten beyond nebulous, especially in the aftermath of the (officially denied, even though we stand behind it 100%) report that the Dallas Fed has been "advising" banks how to mark their oil and gas loan exposure in discussions behind closed doors.

Earlier we reported that Wells Fargo may have an energy problem because as CFO John Shrewsbury revealed, of the $17 billion in energy exposure, "most of it" was junk rated.

But, while one can speculate what the terminal cumulative losses, cumulative defaults and loss severities on this loan book will be, at least Wells was honest enough to reveal its energy-related loan loss estimate: it was $1.2 billion, or 7% of total - as Mike Mayo pointed out, one of the highest on the street. Whether it is high, or low, is anyone's guess, but at least Wells disclosed it.