JHVEPhoto/iStock Editorial via Getty Images In no shock, International Business Machines Corporation ( IBM ) faces disruption by the technology that sent the stock to record highs. The main issue here is that IBM never actually saw huge benefits from AI. My investment thesis remains Bearish on the tech stock, even after the $70 dip from all-time highs in a quick move down. Source: Finviz Disrupted...
JHVEPhoto/iStock Editorial via Getty Images In no shock, International Business Machines Corporation ( IBM ) faces disruption by the technology that sent the stock to record highs. The main issue here is that IBM never actually saw huge benefits from AI. My investment thesis remains Bearish on the tech stock, even after the $70 dip from all-time highs in a quick move down. Source: Finviz Disrupted By AI IBM zoomed ahead last year on the theory AI was driving faster growth, yet the business wasn't really deriving much in the way of AI-related growth. The company constantly announces tons of AI bookings, but a lot of the bookings are in the low margin consulting business, and the overall business isn't growing dramatically. The stock has plunged as the market became fearful of Claude Code from Anthropic ( ANTHRO ) replacing the software business. Suddenly, the market starting realizing IBM faced a threat of a loss of sales, specially in the antiquated COBOL code in mainframe computers. If someone can vibe code a new software platform, one likely could bypass the services of the tech giant. If anything, analysts have pushed back on this claim suggesting IBM was already full speed ahead using generative AI tools via Watsonx to update COBOL code in mainframes to Java. In fact, IBM announced a partnership with Anthropic back in late 2025, long before the Claude Code threat popped up. What the information has made the stock market realize is that IBM faces an AI threat for disruption as much as the company will benefit from AI. The tech company has long promoted the AI benefits from large bookings and cost savings, but the stock market wasn't accurately pricing in risk. On the Q4 '25 earnings call , CEO Arvind Krishna highlighted the AI booking as follows: Our cumulative GenAI book of business now stands at over $12.5 billion, of which Software is more than $2 billion and Consulting is more than $10.5 billion, with both seeing the largest quarterly increase to date. The am...
Phillips 66 estimated nearly $1 billion in losses from its short position in oil and other related commodity derivative contracts in the first quarter as the war in Iran sent crude and fuel prices skyrocketing. The refiner projects impacts of $900 million on its standard net-short position on crude, refined oil products, natural gas liquids and renewables feedstocks-related derivative contracts, a...
Phillips 66 estimated nearly $1 billion in losses from its short position in oil and other related commodity derivative contracts in the first quarter as the war in Iran sent crude and fuel prices skyrocketing. The refiner projects impacts of $900 million on its standard net-short position on crude, refined oil products, natural gas liquids and renewables feedstocks-related derivative contracts, according to a regulatory filing Monday. While the company sees a hit from its short positions on contracts that track commodity prices, the losses from those financial hedges could be offset by the rising value of the physical crude oil and fuels that the firm has on-hand after prices surged. The war in Iran has choked off traffic in the Strait of Hormuz, a critical waterway through which roughly a quarter of the world’s seaborne oil travels. US crude oil has surged by nearly 68% since the conflict began, while diesel futures have climbed 62%. The refiner also saw around $3 billion in expenses for collateral on its derivative positions, due to the run-up in commodity prices. It has since drawn a new $2.25 billion 364-day term loan and upsized another securitization facility from $1.25 billion to $1.75 billion. A spokesperson for Phillips 66 did not immediately respond to a request for comment.
hapabapa/iStock Editorial via Getty Images Co-authored by Relative Value. Overview Waiting for a development in the current Middle East crisis and its implications for oil prices and the associated inflation fears, many traders/investors are waiting on the sidelines for some nice opportunities that the increased volatility could provide. I generally agree with the idea that light, high-quality exp...
hapabapa/iStock Editorial via Getty Images Co-authored by Relative Value. Overview Waiting for a development in the current Middle East crisis and its implications for oil prices and the associated inflation fears, many traders/investors are waiting on the sidelines for some nice opportunities that the increased volatility could provide. I generally agree with the idea that light, high-quality exposure with a lot of buying power available for "promotions" is perhaps the best approach in situations like this. However, pair trades among identical, highly liquid products are the credit risk-free way to put some of this free capital "to work" until a better opportunity arises, or the volatility cools off. We've already presented you with some similar ideas here , here , and here , and with this short article, we'll add yet another pair trade idea. This time, we'll turn our attention to Nuveen Quality Municipal Income Fund ( NAD ) and Nuveen AMT-Free Quality Municipal Income Fund ( NEA ), and their current mispricement. Funds Comparison The municipal CEFs have very similar investment strategies, as their names suggest: The Fund seeks to provide current income exempt from regular federal income tax and to enhance portfolio value.The Fund invests in municipal securities that are exempt from federal income taxes. The Fund uses leverage. By investment policy, the Fund may invest up to 35% of its managed assets in municipal securities rated at the time of investment BBB and below or judged by the manager to be of comparable quality. **Distributions are currently estimated to include the following amounts from sources other than net investment income: 0% capital gains and 34% return of capital. Source: NAD page The Fund seeks to provide current income exempt from regular federal income tax and the alternative minimum tax ( AMT ) applicable to individuals, by investing in an actively managed portfolio of tax-exempt municipal securities. Up to 35% of its managed assets may be ra...
Goldman Sachs Group Inc. says a reliance on stickier, more patient institutional investors, rather than wealthy individuals, helped its $15.7 billion private credit fund narrowly escape the broader exodus plaguing peers this year. Now, it’s looking to capitalize on the retreat of retail money to swoop in while rivals pull back. Goldman Sachs Private Credit Corp. , which manages a so-called non-tra...
Goldman Sachs Group Inc. says a reliance on stickier, more patient institutional investors, rather than wealthy individuals, helped its $15.7 billion private credit fund narrowly escape the broader exodus plaguing peers this year. Now, it’s looking to capitalize on the retreat of retail money to swoop in while rivals pull back. Goldman Sachs Private Credit Corp. , which manages a so-called non-traded business development company, met redemption requests in the first quarter amounting to 4.999% of its outstanding shares, according to a filing on Monday. That contrasts with peers including Blue Owl Capital Inc. that saw redemption requests dramatically higher than an industry-wide 5% limit. Amid the exodus, Goldman Sachs is seeing a “meaningful shift” in the lending environment: the fierce competition that marked the rise of the $1.8 trillion asset class in recent years is starting to ease. That’s tilting the balance back toward the lender rather than the borrower, managers of the fund said in a letter to shareholders. And Goldman Sachs, which is also raising a $10 billion direct lending fund, isn’t the only one talking up the opportunity. A Barings LLC fund that saw investors request 11.3% in redemptions on Monday said that its decision to cap withdrawals will allow it to pounce on deals created by the turmoil in the $1.8 trillion market. Morgan Stanley and JPMorgan Chase & Co. are planning new funds investing in private credit even as the latter’s Chief Executive Officer, Jamie Dimon , cautions that that losses on leveraged lending will be higher-than-expected . There could be some “rebalancing,” as retail investors stay away, boosting spreads, covenants and other deal terms to the benefit of the lender, said Meghan Neenan , the head of non-bank financial institutions for North America at Fitch Ratings . “But it will take some time for those to show up in financial reports or move the needle on overall portfolio metrics,” she added. A representative for Goldman Sach...
Good morning . Trump says Iran can be “taken out” in one night. The Islamic Republic’s request to play World Cup matches outside the US creates problems for FIFA. And NASA’s Artemis II crew reaches a new milestone. Listen to the day’s top stories . Market Snapshot S&P 500 6,611.83 +0.4% Brent Futures $109.69 +0.6% WTI Futures $112.74 +1.1% Market data as of 05:02 PM ET. Data is subject to provider...
Good morning . Trump says Iran can be “taken out” in one night. The Islamic Republic’s request to play World Cup matches outside the US creates problems for FIFA. And NASA’s Artemis II crew reaches a new milestone. Listen to the day’s top stories . Market Snapshot S&P 500 6,611.83 +0.4% Brent Futures $109.69 +0.6% WTI Futures $112.74 +1.1% Market data as of 05:02 PM ET. Data is subject to provider delays. Donald Trump said Iran “could be taken out in one night” and insisted reopening the Strait of Hormuz must be part of any ceasefire deal as his Tuesday deadline to reopen the waterway approaches. Still, the president added that talks with the Islamic Republic are “going well” even as Iran rejected a US truce proposal sent via Pakistan. By warning that the US would deliberately bomb civilian infrastructure in Iran, Trump drew criticism that he was threatening to commit war crimes . West Texas Intermediate crude futures briefly traded above $114 a barrel as Trump’s remarks overshadowed hopes for a diplomatic deal to end the conflict. The S&P 500 whipsawed as the president spoke, but held on to most of its gains. Bonds and the dollar fluctuated. Underwater Mortgages Force China’s Banks to Get More Creative Lenders are trying to prevent defaults and foreclosures that risk deepening the country’s housing crisis. Read more Three years after Binance hired Noah Perlman as chief compliance officer, the former assistant US attorney is said to be looking to leave sometime this year or next. His would be just the latest exit of a senior compliance staffer at the company. The crypto firm said the departures “reflect natural turnover and performance management.” Rivals OpenAI, Anthropic and Google have begun working together to try to clamp down on Chinese competitors extracting results from American models to gain an edge in the artificial intelligence race. The rare collaboration underscores the severity of a concern that some users, especially in China, are creating imitation ...
Plug Power (NASDAQ:PLUG), a hydrogen fuel cell systems developer, closed Monday at $2.69, up 11.62%. The stock moved higher after Plug Power secured a 275-megawatt GenEco electrolyzer award for Hy2gen Canada’s Courant project. Investors are watching how this scale win shapes near
Plug Power (NASDAQ:PLUG), a hydrogen fuel cell systems developer, closed Monday at $2.69, up 11.62%. The stock moved higher after Plug Power secured a 275-megawatt GenEco electrolyzer award for Hy2gen Canada’s Courant project. Investors are watching how this scale win shapes near
On Location President Paul Caine discusses the economic ripple effects of the FIFA World Cup, why 2026 is set to be a monumental year for sporting events, and the growth of sports related travel. He talks with Romaine Bostick and Isabelle Lee on “The Close.” (Source: Bloomberg)
On Location President Paul Caine discusses the economic ripple effects of the FIFA World Cup, why 2026 is set to be a monumental year for sporting events, and the growth of sports related travel. He talks with Romaine Bostick and Isabelle Lee on “The Close.” (Source: Bloomberg)
Home Office will use mapping technology and crime data to identify up to 250 schools in areas of greatest risk Schools across England are to receive dedicated support to prevent knife crime incidents in a hyper-targeted Home Office programme that uses mapping technology to identify areas of risk down to the level of specific groups of streets. Under the £1.2m scheme – part of a series of initiativ...
Home Office will use mapping technology and crime data to identify up to 250 schools in areas of greatest risk Schools across England are to receive dedicated support to prevent knife crime incidents in a hyper-targeted Home Office programme that uses mapping technology to identify areas of risk down to the level of specific groups of streets. Under the £1.2m scheme – part of a series of initiatives launched under a government pledge to halve knife crime within a decade – a maximum of 250 schools will receive help. Continue reading...
Much Western discourse on artificial intelligence has lately focused on establishing safeguards and installing guardrails against powerful new AI systems, algorithmic bias, the collusion of governments and tech oligarchs, and rising related environmental costs. The growing AI backlash in the West has been labelled a “botlash” in a recent commentary by Stanford University’s Marietje Schaake, who in...
Much Western discourse on artificial intelligence has lately focused on establishing safeguards and installing guardrails against powerful new AI systems, algorithmic bias, the collusion of governments and tech oligarchs, and rising related environmental costs. The growing AI backlash in the West has been labelled a “botlash” in a recent commentary by Stanford University’s Marietje Schaake, who includes anti-AI movements such as “QuitGPT”, “Resist and Unsubscribe” and “Stealing Isn’t...
Decentralized finance (DeFi) -- the lending, trading, and borrowing protocols that run on blockchains -- today has nearly $94 billion in total value locked (TVL) in DeFi projects across all crypto networks. That makes DeFi a huge market segment in crypto, and it also means that whichever coins capture the next leg of its growth are sure to outperform. Solana (CRYPTO: SOL) is for many investors an ...
Decentralized finance (DeFi) -- the lending, trading, and borrowing protocols that run on blockchains -- today has nearly $94 billion in total value locked (TVL) in DeFi projects across all crypto networks. That makes DeFi a huge market segment in crypto, and it also means that whichever coins capture the next leg of its growth are sure to outperform. Solana (CRYPTO: SOL) is for many investors an obvious choice to get exposure to the future of DeFi. Still, it's undeniable that the current king of the segment, Ethereum (CRYPTO: ETH) , is going to be relevant for a long time, and it's also clear that there are other competitors on the playing field. So is Solana the smartest bet here, or is Ethereum or one of the other players a better option? Image source: Getty Images. Continue reading