Highlight of the Week
Jobs Report Blows Past Expectations for Payrolls and Unemployment
-Nonfarm payrolls rose by 916k in March (versus 675k expected), while unemployment declined to 6%.
-The job growth gains were strongest in leisure and hospitality, and construction soared by 110k.
Rate Curves
Rapid Report:
Coronavirus Updates (as of Wednesday Morning)
-COVID-19 has registered 133 million cases and 2.89 million deaths worldwide.
-The U.S. has accounted for over 31.6 million cases and has surpassed 570 k deaths.
-Georgia has surpassed 1.1 million cases and 19,238 deaths.
Hedge Fund Implosion and the 5 C’s of Credit
-The collapse last month of U.S. hedge fund Archegos Capital cost Credit Suisse nearly $4.7 billion. Archegos used borrowed money to build massive positions in stocks and was unable to pay back lenders when share prices dropped.
-While many will appropriately debate the need for new controls and reporting related to derivative positions, the fall of Archegos highlights the importance of Character, Capacity, Capital, Collateral, and Conditions. Leveraged at 5:1 with a history of illegal activity, Archegos’ highly concentrated and opaque positions should have created red flags for any Risk Manager.
Jamie Dimon Articulates Optimistic Economic Outlook in Letter to Shareholders
JPMorgan CEO offers the U.S. could now be on track for fast, sustained growth.
