2-year Treasury yield tops 10-year rate, a ‘yield curve’ inversion that could signal a recession [CNBC]
The 2-year to 10-year spread was last in negative territory in 2019, before pandemic lockdowns sent the global economy into a steep recession in early 2020…. “Most of time, it is a recession harbinger but not all the time,” said Julian Emanuel, head of equity, derivatives and quantitative strategy at Evercore ISI. He noted one time when the curve inverted but the economy avoided a recession was in 1998 during the Russian debt crisis which was followed by the Long Term Capital Management failure.
GameStop shares rise as company plans stock split [CNBC]
The video game retailer will seek stockholder approval at its next shareholder meeting for an increase in the number of Class A common stock from 300,000,000 to 1,000,000,000 to partly conduct a stock split in the form of a stock dividend, the company said Thursday after the bell…. It was not clear how much of the increased share count would be used for the stock split. GameStop inserted a line in a regulatory filing that suggested part of the increase in shares could be used at some point for other means, possibly selling more stock.
Massive S&P options trade may have roiled U.S. stocks on Thursday [Reuters]
The S&P 500 Index fell 1.2% in the last hour of trading on Thursday, marking the largest hourly drop for the index in more than three weeks…. The trade, which took place shortly before 11:00 am, was a large collar options trade, involving the sale of about 44,000 June calls and the purchase of an identical number of June put spreads, that would pay up if the S&P 500 were to decline more than 5% from its current level…. Traders pointed to the $19 billion JPMorgan Hedged Equity Fund as being behind the moves.
Greenlight Lost Money in March [II]
The value driven hedge fund headed by David Einhorn dropped 1 percent for the month, missing out on the rally in the S&P 500, which rebounded by 5.2 percent. Even so, Greenlight is still up 4.4 percent for the year, solidly ahead of the S&P….
SEC Tells Exchanges to Treat Customer Crypto Holdings as Liabilities [WSJ]
SEC officials said the aim is to introduce consistency to the accounting methods used by such platforms. But the change could also cause the balance sheets of publicly traded crypto exchanges and other SEC-registered entities that custody cryptocurrencies to grow exponentially…. The SEC’s new guidance for crypto-trading platforms contrasts with the approach used by brokerages such as Charles Schwab Co. Inc. Those firms are allowed to leave the value of client assets off their own balance sheets because of legal precedent that has established that, in the event of bankruptcy, the assets belong to the clients.
Activist Investing, Italian-Style: The Battle for Generali [WSJ]
Assicurazioni Generali, one of Europe’s largest insurance companies, is under siege. The board wants shareholders to renew the mandate of incumbent Chief Executive Officer Philippe Donnet at a meeting on April 29, and has the backing of top shareholder Mediobanca, a Milanese bank. But the second-largest shareholder, cement tycoon Francesco Gaetano Caltagirone, last week proposed a different board of directors, including veteran Generali executive Luciano Cirinà as CEO, who was promptly fired for volunteering to replace his boss.