Goldman Said to Get Burned by These Debts in Rare Trading Miss (BBG)
Goldman Sachs held roughly $200 million in Peabody bonds, about 10 times more than other major dealers, as the coal miner prepared earlier this year to exit bankruptcy protection, according to data from Securities and Exchange Commission filings and a person with knowledge of the restructuring’s terms. Those bonds would have lost about $40 million this year as their value slumped.
Tesla’s big Model 3 bet rides on risky assembly line strategy (Reuters)
Musk’s decision underscores his high-risk tolerance and willingness to forego long-held industry norms that has helped Tesla upend the traditional auto industry. While Tesla is not the first automaker to try to accelerate production on the factory floor, no other rival is putting this much faith in the production strategy succeeding.
Charts Show Traders Writing Down Chances of a Le Pen Presidency (BBG)
“There’s certainly a change that’s been demanded from the electorate, but it’s a more balanced view and that’s good for markets,” said UBS Asset Management’s Anderson. “It’s pro-growth, with a less protectionist slant.”
Adaptive Markets, by Andrew Lo — emotional investment theory (FT)
Lo has for years offered the adaptive markets hypothesis as an alternative [to efficient markets]. Borrowing from Darwinian biology, his idea is that markets develop and adapt over time. They cannot be modelled using concepts from physics, but can be viewed biologically as a complex ecosystem. And they will often behave as though they are efficient.
The Most Dangerous Narratives are Usually the Smartest (PragCap)
When you consider risk parity AUM of $150B and capital weight of 30% the numbers and the frequency of rebalancing get too small to move the markets. It just doesn’t add up that $45B of assets being rebalanced infrequently in trillion dollar markets is somehow creating crash risk.
Sears owner has milked iconic retailer dry, analysts say (NYP)
“Eddie will be able to sell off a lot of assets very much like in a Gordon Gekko-style scenario, and at least get paid back some of the secured notes he has made to the company,” said Prosperity Financial Group CEO Andrew Denney. “The tag line is how Eddie is cashing in as Sears is cashing out.”
Uber’s C.E.O. Plays With Fire (NYT)
For months, Mr. Kalanick had pulled a fast one on Apple by directing his employees to help camouflage the ride-hailing app from Apple’s engineers. The reason? So Apple would not find out that Uber had been secretly identifying and tagging iPhones even after its app had been deleted and the devices erased — a fraud detection maneuver that violated Apple’s privacy guidelines.
What city is the microbrew capital of the US? (Pudding)
Craft beer — so hot right now. Could Brooklyn, New York, really be the microbrew capital of the US? Nope.
Alaska's Most Xtreme Dentist Allegedly Pulls Tooth While Riding Hoverboard (Gizmodo)
Lookhart texted the video to his office manager, joking that the procedure represented a “new standard of care.” When interviewed by authorities, the patient reportedly said she did not know about Lookhart’s behavior.