Using Veritas to Construct the "Per…

29-04-2017 Hits:84661 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:79125 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:78968 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:83460 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:80021 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:82329 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:53303 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:81339 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:81335 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:81147 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:86997 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:85014 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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  • From FT.com: Summarized by RGEMonitor.com - Citigroup is allowing private equity groups bidding for up to $12bn of its leveraged loans to cherry-pick from a wide range of assets with different prices and credit ratings. Deutsche Bank has been trying to sell parts of its €36bn ($56bn) portfolio in leveraged loans to private equity groups since August. Same for Credit Suisse and Goldman Sachs. But wait, it gets worse -the I banks provide vulture funds with financing to buy banks' distressed debt--> In its first leveraged loan sale, Deutsche lent the buyers $3 to $4 – at below market rates – for every $1 of credits they bought. The buyers paid full prices for the loan themselves, one buyer says.

    By selling the loans at full prices, Deutsche was able to avoid marking down its positions. The deal offers Deutsche additional protection because if the price of the loans drops, the buyers would have to put up more collateral, the loan buyer says. For the private equity firms, the key to the deal is the low-cost leverage, which gives them a chance to boost potential profits even though they paid a full price for the loans themselves. May I comment. The banks are trying to get $50 B of bad loans off of its balance sheet. So it makes $40 B of loans (under priced which should be market do market) to move these other bad loans that are guaranteed to drop in price. Are we supposed to believe that Deutsche Bank truly transferred risk from the balance sheet, or just transferred the assets? OK, I guess I'm just stupid and don't get it.

  • European banks biding time, mark to market losses will soon convert to operating and credit losses. Fitch sugar coats it: The issue of credit performance now becomes central to the outlook for leveraged  credit as medium‐term refinancing risk remains pervasive throughout the market. With banks arguing that any recovery in the primary market remains dependent on recovery in the secondary market, constituents have no choice other than to anxiously bide their time as financial system stresses continu  to be worked out and the inevitable contagion to the broader European economy approaches. Indeed, leveraged credit market constituents are left with little more than hope that outstanding credits continue to perform in time for an economic and credit market recovery that will provide the refinancing and exit options necessary to avoid widespread defaults. That hope may be justified as, ironically, the excess that accompanied the wind‐up in financial system leverage, particularly in regard to loose covenants and back‐ended debt maturity profiles, has insulated the leveraged credit market from the spike in defaults normally associated with a credit crisis.
  • Altman, whose Z score analysis I have used in this blog for the homebuilding industry chimes in on what happens when the excess liquidity from the non-traditional lenders dries up. I have state repeatedely that the historically low default rates will soon skyrocket, further distressing banks and the economy. Well,,, according to S&P/Res.recap blog: U.S. distressed debt ratio up sharply from less than 1% during past five months to 3% in August. The first sectors to succumb are the usual suspects: consumer products, retail/restaurants, and finance companies. Covenant "none" debt delay the inevitable defaulting through avoidance of technical triggers.
  • FT: Expect legal arbitrage rather than distress renegotiations with short-term oriented hedge funds; Geithner: Untangling complex web of OTC contracts in case of default like "unscrambling eggs"
  • Hu/Black; BofA: Distress renegotiations less likely with HF than with PE due to short-term focus. Also: these who buy credit protection in general bet on default, not restructuring. However: Physical bond settlement favors default because protection buyer receives face value (i.e. the underlying bond); cash settlement on the other hand includes substantial hair cut and protection buyer might be better off restructuring.