“Anything with incremental yield is on fire.”  (Across the Curve)

High yield spreads are nearing pre-Lehman bankruptcy levels.  (Bespoke)

Nearly 80% of stocks are above their 50 day moving average.  (Financial Ninja)

Semi-annual Fed chair testimony often marks market turning points.  (Sentiment’s Edge)

Is capital structure arbitrage back?  (Zero Hedge)

Auditioning replacements for Russia in the BRIC scheme.  (The Reformed Broker)

On the challenges of using VIX products to hedge a portfolio.  (TheStreet)

What David Einhorn has been buying.  (market folly)

Traders learn from their losses, not their gains. (Aiki14)

You cannot trade every ETF the same way.  (ETF Trends)

General Electric (GE) before and after Jack Welch.  (Value Expectations)

Secondary offerings come back in a hurry.  (24/7 Wall St.)

SPACs have been unable to get deals done.  (Breakingviews)

Are there common factors driving non-fuel commodity prices?  (SSRN)

Conceptualizing the EMH as there being “no free lunches.”  (Baseline Scenario)

Cheap government capital is allowing “Goldman to speculate on trades that would normally be too risky.”  (Clusterstock)

“Was the TLGP really just a GE bailout?”  (Clusterstock)

“Just how much could the bailout of the financial system end up costing American taxpayers?”  (NYTimes also EconomPic Data, MarketBeat)

Ben Bernanke, “We are confident we have the necessary tools to withdraw policy accommodation, when that becomes appropriate, in a smooth and timely manner.”  (WSJ also Economist’s View)

Andy Lo, “The implications of the AMH for regulatory reform are significant. Markets can be trusted to function properly in normal times, but if humans are subject to emotional extremes, animal spirits may overwhelm rationality, even among regulators and policymakers.”  (FT also Dealscape)

Elizabeth Warren defends the Consumer Financial Product Agency.  (Baseline Scenario)

“The “quality” of the financing of the US deficit has gone down.”  (Brad Setser)

Is small cap a viable alternative to US private equity?  (SSRN)

VC funding is on pace to return to pre-Internet bubble levels.  (Bits)

An interview with proprietary trader Mike Bellafiore of SMB Capital. (Wall St. Cheat Sheet)

David Wessel’s “In Fed We Trust” gets a rave review.  (NYTimes)

In praise of diversity in economic journalism. (Curious Capitalist)

“Undeniably, there is money to be made in digital publishing with free reader access, but whether that revenue leads to profits depends upon the scale and scope of the organization.”  (Daring Fireball)

“If the human tongue has a secret password, then this sweet, salty and fatty breakfast sandwich [McGriddle] is the code.”  (Frontal Cortex also Atlantic Business)

Abnormal Returns is a proud member of the StockTwits Network.