Shares of CHK have recovered since making a press release, announcing they have no interest in bankruptcy.
Co stated that Kirkland & Ellis LLP has served as one of Chesapeake’s counsel since 2010 and continues to advise the company as it seeks to further strengthen its balance sheet following its recent debt exchange. Chesapeake currently has no plans to pursue bankruptcy and is aggressively seeking to maximize value for all shareholders.
As you were, lads.
Shall we commence another round of european debt crisis or no? I say yes.
We are seeing a very worrying development in Europe today, as the strong economies bond yields plunge, the weaker nations, the PIGS (Portugal, Italy or Irelend, Greece and Spain) soar. Forget about everything that has happened over the past two months. If this european debt crisis reemerges, look out below. There will be significant carnage to be had. Look at the Greek banks today.
The NASDAQ is off by more than 100. CHK is down 50%.
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Debtwire is reporting that Chesapeake has hired Kirkland & Ellis to restructure their debt, which is in excess of $12 billion.
If true, this will undoubtedly send shockwaves throughout the oil and gas space. Already, SDRL, WLL, BBG and a slew of others are tanking.
Some of the pipeline stocks are getting it almost as bad as CHK, with WMB and ETE plunging over 30%.
Look at the carnage. Gawk at it; but don’t touch it.
The good bad news is the NASDAQ is down more than 7.5% for the month of February, just one week into it. The good news is the last time the market fell like this, in 2002, the NASDAQ rose by 6.7% in March.
However, I do bring moar news of the medieval varietal. Back in February of 2002, the NASDAQIRI fell by 12.2% or 4.6% more than the losses we have– month to date.
The egregiously worse news was in February of 2001, the NASDAQ dropped by a heart-shattering 26%, only to drop by another 17% in March.
Just a little background on those two cumulative months of complete fuckery. I remember those two months very vividly, as they were a morbidly comical part of my life, where my broker friends and I would run about Manhattan, drinking booze and lamenting over the end of the stock market. You must imagine the sheer tragedy of it all: losing 26% in one month is bad enough. But losing another 17% on top of it felt like something out of a science fiction book–twilight zone shit.
In April of 2001, stocks rose by 17.8%. In 2002, it fell 12%+.
Either way you slice it, historically, we’re completely fucked.
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The Athens FTSE 20 is off by 9% now and a wide variety of Greek banks are down double digits.
Related: Austria is down 3.6%, Denmark is down 3.7%, Germany is down 2.8%, Norway is down 3%, Spain is down 2.75%.
In Germany, Commerzbank is down 6.7%.
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Gold is soaring this morning, as futures plunge into the dark, rabble-rousing, sea of perfidy. Investors, for reasons inexplicable to the layman, are now viewing gold as a safe haven, something that has been absent from the industry for more than 4 years.
The traditional ‘risk off’ trade, long bonds, is working again this morning.
Gentlemen, get aboard the ark. Feel free to bring your gold bricks. We can use them to bash the skulls in of the cows onboard.
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I’m going out on a limb here to suggest this guy is completely full of shit. Who is he kidding with the olde “everything is cheery and fine here in oil hell” anyways? During an interview this morning on CNBC, former Fed head, Dick Evans, gave a very positive assessment of Cullen Frost’s oil portfolio, saying all was well, nothing to see here. I got flashbacks of Baghdad Bob while watching this man spin a yarn.
In all fairness to Dick, it’s his job to stay positive and lift morale throughout the ranks. His stock has been sledgehammered to the tune of 33% over the past 3 months and Wall Street is screaming “you’re full of shit” after each and every one of this Polyana “we are a diverse economy in Texas” interviews.
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The Dax is off by 2.7& and NASDAQ futures are lower by 62, Dow futures off by 170, as the ‘negative feedback loop’ of a worsening Fed stance on monetary policy, Oil, and China (FOC’d) weigh on the minds of investors.
The dollar is higher by 0.4% v the euro and breakfast hasn’t even been served in Princeton, NJ yet.
At the end of the day, this week is all about Yellen’s testimony. There is a growing consensus out there that she will dig in her heels on a March Fed rate hike, which is sure to leave traders astounded with elephantine losses.
“I don’t think we should expect Yellen to throw the towel on a March hike,” said Thomas Costerg, a senior U.S. economist at Standard Chartered Bank in New York. “She may emphasize the positives in the U.S. economy, particularly the still-strong labor market. Looking ahead, she may sound more cautious, and she will likely highlight that the negatives are mostly from abroad and that they are watching the global picture closely.”
Yellen talks Wednesday.
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Apparently, he owns an interest in two Bud distributorships.
Following the Broncos’ super bowl win, when asked what he’d do next, Peyton Manning, in two different discussions, said he’d go kiss his wife and children, then go drink a whole lot of Budweiser.
He pulled this shit in the AFC championship win too. It just went under the radar, due to the obscurity of his degenerate favoritism towards swill.
Following the Broncos’ 24-17 AFC divisional playoff victory over the Chargers in 2014, Manning was asked if retirement was weighing on his mind.
“It’s really not,” he responded. “What’s really weighing on my mind is how soon I can get a Bud Light in my mouth after this win.”
A Budweiser spokeswoman said the company did not pay Peyton to promote the brand, but were delighted by it nonetheless.
It’s becoming quite the fashionable trade these days, boarding the ark and all, waiting for the floods. Meanwhile, I’ve was building the ark when all of you were out frolicking about the prairie, enjoying the sunshine and the green grass. Now that markets have plunged and bonds have risen, everyone wants a seat.
With yields on U.S. 10-year notes within half a percentage point of an all-time low, Morgan Stanley strategists say there’s more room for them to fall as economic data underperform economists’ estimates. They also recommend bullish positions in bunds and gilts. The yield on the Bloomberg Global Developed Sovereign Bond Index dropped to 0.77 percent on Friday, extending its decline to the lowest level since at least the start of 2010.
“Despite the meaningful decline in sovereign yields since the Fed lifted off in December, we would rather overstay our welcome than miss a continuation of the move to lower yields,” analysts led by New York-based Matthew Hornbach, head of global interest rate strategy, wrote in a client note dated Feb. 6. “We do not think Fed Chair Yellen’s testimony will loosen financial conditions enough for global yield curves to steepen.”
Well I have news for you late comers: we have very little space left on the ark. If you want to come aboard, I have a few seats left next to the Venus fly traps and the mongoose. Other than that, you’re gonna have to pray for dryer climes.
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