Profile cover photo
Profile photo
Deschutes Capital
12 followers -
Deschutes Capital structures and arranges corporate debt of $10 + mil. for middle market companies with sales of at least $25 mil.
Deschutes Capital structures and arranges corporate debt of $10 + mil. for middle market companies with sales of at least $25 mil.

12 followers
About
Deschutes Capital's posts

Post has attachment
The first quarter GDP has been showing what seems to be seasonal slowing in the economy over the last few years, coming in at 0.7% for the first quarter of 2017. With consumer spending coming in at only 0.3% and a flattening yield curve, the uncertainty of the future direction of the US economy has certainly increased. Although the Atlanta Fed's GDP Now forecasting has not been particularly accurate of late, it is heartening to see it is forecasting a 4.3% GDP for our current 2nd Quarter.
https://www.frbatlanta.org/cqer/research/gdpnow?d=1&s=email-weekly-digest&utm_source=Atlanta+Fed+E-mail+Subscriptions&utm_campaign=86aab7a6e9-weekly-digest-2017-05-01&utm_medium=email&utm_term=0_b7a27f0b85-86aab7a6e9-258772789

Post has attachment
The recent 2nd Quarter GDP of only 1.2% following the 1st Quarter GDP of 0.8% seems contrary to the strong Non-farm payroll number of 255K released today for July. Time will tell whether the inventory adjustments and reduction in capital spending are a healthy rebalancing or a leading indicator for the employment numbers. Attached is a Bloomberg article "US Companies Have Enough Confidence to Hire, If Not Invest" by Carlos Torres.

Post has attachment
The Atlanta Federal Reserve's 2nd Quarter GDPNow forecast has come down dramatically to 1.8% from 2.3%. The current consensus forecast is 2.6%, significantly higher.

Post has attachment
Global corporate credit quality continues to deteriorate.  This S&P article provides some additional perspective on the significance of the debt deterioration.
http://finance.yahoo.com/news/corporate-ratings-outlook-worst-since-124608698.html

Post has attachment
The Climate Change agreement reached in Paris last weekend (COP21), at the very least is evidence that nations can cooperate toward constructive results, with nearly 200 nations agreeing. The following BBC article by Matt McGrath provides a nice overview and perspective. Even though the agreement falls short of its stated goal of limiting global warming to 2 degrees C, it has made a major step forward in providing a framework for directing business efforts toward a common goal of reducing greenhouse gases.
http://www.bbc.com/news/science-environment-35086346

Post has attachment
Secular Stagnation - Larry Summers presents a convincing argument for an expansionary fiscal policy focused on investment and maintenance, given the slowing global growth and limits of monetary policies with zero real interest rates. 
https://www.washingtonpost.com/opinions/the-global-economy-is-in-serious-danger/2015/10/07/85e81666-6c5d-11e5-b31c-d80d62b53e28_story.html

Post has attachment
A great article by Prof. Lawrence Summers about the deterioration of US economic influence in the world as evidenced by China's development of the Asian Infrastructure Investment Bank.  Unfortunately disfunctional US politics and idealism over the last couple of decades is having a very material consequences with respect to our influence on global economic issues. There are several major global economic issues that need to be addressed, as Prof. Summers illustrates, that the US could be a constructive contributor but it will have to be within the framework of a global consensus (not our way or the highway). The US needs to respond to the writing on the wall or the US will accelerate the transition of economic leadership to China.

Global economics, US, Infrastructure Financing, Corporate Finance, International Project Finance, Restructuring Global Economic System.

Post has attachment
It will be interesting to see whether a liquidity squeeze results from these guilty felony pleas by these major institutions if this comes to fruition.
http://dealbook.nytimes.com/2015/02/09/u-s-is-seeking-felony-pleas-by-big-banks-in-foreign-currency-inquiry/  Certainly if this were to take place with an investment bank, they would most likely collapse from the withdrawal of funds within only a few days. David Wyly, President of Deschutes Capital

Post has attachment
Limits of Central Banks & Market Signals - The coming months will tell but one has to wonder if there is a larger significance to the Swiss National Bank ("SNB") decoupling the Swiss Franc from the Euro currency. But without a doubt, the SNB's move clearly shows that there is a limit to Central Banks and that their actions cloud the market signals from which investment decisions are being made. 

Post has attachment
Hard not to be concerned with the fiscal deterioration taking place in not only the developed countries but developing and emerging market countries as well. Monetary policy is over-burdened with widespread in action from politicians with respect to reforming fiscal policies. This with the back drop of the sell off in Treasury Inflation Protected Securities (TIPS) in the US and widening high yield debt spreads, the likelihood of a significant economic downturn seems to have increased significantly. 
David Wyly, President of Deschutes Capital. 
Wait while more posts are being loaded