Hedge Against AI Crash Emerges in Credit

The American consumer is entering the holiday season with significant challenges, as retail stocks are in need of an unlikely miracle to salvage a difficult 2025. Economic pressures are evident, raising concerns about consumer spending during this critical period.

Bitcoin has faced a severe downturn, marking its worst monthly performance since the 2022 crypto collapse, with a loss of approximately 25% in November. This significant decline has triggered a stress test for Wall Street, as the cryptocurrency's volatility reverberates through financial markets.

America's cattle ranchers are facing increasing financial pressure, contributing to the rising costs of beef. This situation has been highlighted in a recent report by Bloomberg, which outlines the challenges ranchers are encountering in the current market environment.

Defense and cybersecurity contractor ManTech International Corp. has canceled its planned $2.3 billion leveraged loan sale due to weak demand, opting instead to seek funding from private credit lenders. This decision reflects the current challenges in the financial markets affecting large-scale loan transactions.

Following a warm reception from President Trump, Saudi Arabia's Crown Prince Mohammed bin Salman is expected to shift the Kingdom's focus from petrochemicals to technology, which may lead to significant investment opportunities. Experts from Basilinna and the Council on Foreign Relations discuss the implications for investors.

Meera Pandit, Executive Director and Global Market Strategist at JPMorgan Asset Management, expressed concern over the recent rise in unemployment. She indicated that the Federal Reserve may hold interest rates steady in December, with potential gradual cuts next year, likely limited to two or three adjustments. This sentiment reflects broader anxieties regarding the labor market's health.

A mortgage loan for Chicago’s Bank of America Tower is being refinanced with $700 million in bonds, marking a significant development in the city's struggling real estate market. This deal is noted as the largest mortgage bond transaction in Chicago since the onset of the COVID-19 pandemic, according to sources familiar with the situation.

Andrea Auerbach, Global Head of Private Investments at Cambridge Associates, predicts that private markets will reach their lowest point in 2026, with expectations of improved exit and fundraising activities compared to 2025. This outlook was shared during an interview with Romaine Bostick and Katie Greifeld on 'The Close.'