media monthly

Bloomberg Brief: Homebuilders: A ‘Double Bubble’?

Bloomberg Brief: Homebuilders: A ‘Double Bubble’?

By Anders Maxwell While there were notable home builder bankruptcies such as William Lyon Homes and Tousa Inc. in the latest downturn, defaults within this industry did not match the failure rate witnessed in the late 1980’s. Various indicators of credit risk – credit default swaps and bond yields – hinted that a larger number ... Read More

DBR: Beneficiaries of Failure

DBR: Beneficiaries of Failure

By Anders Maxwell A special supplement to The Financial Times on Sept. 21, 2012, questioned the major bond rating firms’ increasingly benign forecasts for default rates from the current trailing 12 month’s 2.8% to 3.7% by midyear 2013. These levels are substantially lower than the long- term average of 4.4%. The FT report was follow... Read More

Daily Bankruptcy Review (DBR): Where Capital Goes to Die

By Anders J. Maxwell Market wags have characterized a succession of money losing investments with the above anthropomorphism. In the mid-'90's, this unflattering sobriquet was applied to venture capital; 10 years ago, to airlines; and recently, Japan. If this dubious distinction—“where capital goes to die”—was fitting for... Read More

Daily Bankruptcy Review (DBR): Future Shock

By Anders Maxwell In his 1970 bestseller, “Future Shock,” sociologist Alvin Toffler put forward a thesis that individuals would be increasingly overwhelmed by the accelerating rate of social and technological change, popularizing the phrase, “information overload.” Forty years on, the U.S. economy itself is in Future Shoc... Read More

Daily Bankruptcy Review (DBR): The Great Housing Depression

By Anders J. Maxwell Traditional business cycle theory holds that housing leads the economy in and out of recession. This reflects the industry’s historic sensitivity to interest rates. While housing clearly led the recent downturn, having peaked by early 2007, this economic bellwether continues to plumb new depths. Gauged by financial mar... Read More

Daily Bankruptcy Review (DBR): QE2…Road to Hell…the Sequel

By Anders J. Maxwell U.S. equity and bond markets have now retraced their steps and are fully recovered from the precipitous fall of 2008. The financial markets’ rebound is in stark contrast to the “real economy.” September’s headline-grabbing jobless rate remains at 9.6%, with the Commerce Department estimating that one ... Read More

Daily Bankruptcy Review (DBR): Beware Zombie Credit Markets

By Anders J. Maxwell The movie “28 Days Later” is a chilling portrayal of a future where an uncontrolled virus turns society into a wilderness populated by zombies. Now, nearly 28 months since the onset of 2008's “great recession,” this science fiction thriller seems an apt metaphor for U.S. capital markets. Equity market... Read More