Saturday, November 15, 2025

Trump threatens China, banks rattle nerves, momentum stocks stumble. QQQ at a crossroads. Brace for next week. – Citizen Watch Report

Must read

Here is the set-up going into tomorrow and next week:

Two weeks ago on Friday Trump pounded stocks lower in the morning by threatening to escalate the trade war with China.

Last week, there were concerns over a renewed bank run.

And early this week there was a momentum stock crash.

Each time the lower bound was tested.

For the past decade, the $1.7 trillion private credit industry has ridden high on a swell of inflows built on the premise they will deliver annual returns close to 10% through bear and bull markets, all while keeping defaults and volatility low.

Still, managers of private funds have different approaches to benchmarking their performance than their peers who oversee publicly-traded debt. The latter have to mark down their positions when bad news reduces their value. Managers of private funds have more latitude in deciding what their loans are worth. That leaves a lot of room for interpretation — and ginned-up returns.
“Valuations can vary significantly and have been a frequent source of contention in the industry,” said Zain Bukhari, associate director of risk and valuations for S&P Global Market Intelligence.
“Mark-to-myth” accounting of unrealized gains “raises serious questions about the transparency, accuracy, and inherent riskiness of reported performance metrics,” according to the academics.



Source link

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article