RISK IS BACK ON THE TABLE

The animal spirits are awake. Traders are officially the most "risk-on" they have been since the 2021 frenzy.

RISK IS BACK ON THE TABLE

Good afternoon,

The animal spirits are awake. Traders are officially the most "risk-on" they have been since the 2021 frenzy. Citadel is rushing into metals, gold is going vertical, and JPMorgan is putting the screws on its bankers to catch up to Goldman Sachs.

It’s not just Wall Street feeling the heat. Sydney Sweeney just launched a lingerie brand, and private credit firms are selling debt to themselves at a record pace. The market is moving fast, and volatility is creeping back in.

Getting started.

The Pulse

As of 1/27/2026 market close.
As of 1/27/2026 market close.

Markets

  • US stocks climbed yesterday as the market digested the first wave of mega-cap earnings.
    • Insurance stocks took a beating on news that the US will hold Medicare rates steady.
  • Korea’s KOSPI surged 2.7%, marking its best day in three weeks as investors bought the dip on tariff news.
  • India’s market is down 4%, off to its worst start in a decade.
  • The correlation between US Treasuries and Emerging Market bonds has dropped to its lowest point since 2022.
  • Gold and silver are going parabolic.
  • The Dollar tumbled 1.2% to near four-year lows following dovish comments from Trump.

Earnings

  • UnitedHealth Group beat on earnings but issued a weak forecast. Shares crashed 20% on the Medicare rate freeze and rising costs. (CNBC)
  • Boeing saw sales jump 57% and cash flow improve, but wider losses kept excitement in check. (CNBC)
  • RTX beat estimates with a 12% sales jump and a record $268B backlog. (BRN)
  • GM beat earnings but missed revenue. They are flagging $4B in potential tariff costs. (CNBC)
  • American Airlines missed estimates due to the government shutdown but remains optimistic on its premium strategy. (CNBC)
  • This week's lineup:
    • Today: Microsoft, Meta, Tesla, Starbucks, IBM.
    • Thursday: Apple, Visa, L3 Harris, Southwest Airlines.
    • Friday: American Express, Verizon, ExxonMobil.
  • See the full calendar here.

Prediction Markets

Headline Hunt

  • Europe faces economic decline if it doesn't overhaul its regulations. (RT)
  • Europe plans to ease reporting rules for private credit. (BBG)
  • Dollar traders are paying record premiums to bet on a deeper crash. (BBG)
  • The borrowing spree by Big Tech is raising alarms about AI risks in the bond market. (FT)
  • Trump says he will 'de-escalate' in Minnesota following the ICE killing. (CNBC)
  • US consumer confidence has plummeted to a twelve-year low. (RT)
  • Markets are showing the highest "risk-on" sentiment since 2021. (BBG)
  • Private wealth is now the fastest-growing capital source for secondaries. (BBG)
  • Just 5% of startups are attracting 50% of all VC funding. (CT)
  • Canada is poised for an IPO revival as economic confidence returns. (RT)
  • African nations are tapping the Eurobond market as risk appetite returns. (BBG)
  • Record debt levels in rich nations are threatening global growth. (NYT)
  • Goldman Sachs has promoted seven partners to its management committee. (BBG)
  • HSBC crossed the $300B market cap threshold for the first time. (RT)
  • Citadel is joining the rush to trade metals as prices soar. (BBG)
  • A $14B meme stock is apparently working on a herbal remedy for autism. (WSJ)
  • Sydney Sweeney launched her new lingerie brand, Syrn. (YH)

The Deal Room

M&A / Investments

  • CD&R is prepping the sale of industrials firm Indicor at a valuation over $6B.
  • Permira is looking to offload German pharma company Neuraxpharm for $4.8B-$6B.
  • Anta, China's sportswear giant, is buying a 29.1% stake in Puma for $1.8B.

Venture Flow

  • OpenAI is negotiating to raise $30B more from SoftBank as part of a mega-round targeting an $830B valuation.
  • Anthropic is set to double its round to $20B at a $350B valuation, led by GIC and Coatue.
  • EPG raised a $100M Series B co-led by Forebright and Silicon Peak.
  • Tandem is raising a $100M round at a $1B valuation led by Accel.
  • Bill Gates' daughters' AI shopping agent startup Phia raised a $35M round at a $185M valuation led by Notable Capital.
  • Northwood Space, a satellite ground-station startup founded by Disney star Bridgit Mendler, raised a $100M Series B led by Washington Harbour Partners and a16z.

IPO / Direct Listings / Issuances / Block Trades

  • Vedanta is selling a $500M stake in its Hindustan Zinc unit.
  • Patsnap is weighing a dual listing in Hong Kong and Singapore to raise $300M-$400M.

The Debt Desk

  • Germany raised $7.7B in a debut 20-year bond sale with record demand.
  • FedEx Freight raised $3.7B in a debut bond sale ahead of its spinoff.
  • Codelco launched a $1.5B bond sale.

Bankruptcy Watch

  • Vanke agreed to pay bondholders $417M after getting extensions.
  • Cubic Corp. is deferring interest payments just months after a restructuring by Elliott and Veritas.

Fresh Capital

  • HarbourVest Partners raised $1.1B for a secondaries fund.
  • Ambienta raised over $600M for a sustainable private credit fund.
  • WSJ's The Journal podcast hosted Jason Zweig, author of The Intelligent Investor column, to walk investors through how to construct portfolios for 2026 amid an impending AI bubble, geopolitical turmoil, and inflation volatility. Tune in here.​
  • The Financial Times found a peculiar market setup: investors are betting on "hot" growth ahead of midterm elections, yet simultaneously pricing in renewed inflation while expecting the Fed to keep cutting rates. This collision of optimism and hawkish signals is creating dangerous policy pressures. Read.​
  • FT Adviser's podcast featured Martin Connaghan, co-manager of Murray International Trust, discussing where value lies in global equity markets for 2026 and why international diversification away from US mega-cap tech is looking increasingly compelling. Listen here.

Today’s Meme Pick

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