CBX Daily 5/12/2025

Author

Judy Obae
May 12, 2025

Today, the MET gala dazzles with fashion and fame, but let’s start with how China pulling back bonds is sparking a U.S mortgage game…

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China’s Retreat On Bonds Could Push U.S. Mortgage Rates Higher  

CBX Vibe

Foreign investment particularly from China has played a stabilizing role in the U.S. housing finance system by propping up demand for mortgage-backed securities (MBS) issued by Fannie Mae, Freddie Mac, and Ginnie Mae. But recent shifts suggest Beijing may be pulling back. Early indicators point to China reallocating capital into hard assets like gold and decentralized stores of value like Bitcoin. With China holding a significant amount of an estimated $1.3 trillion in U.S. MBS, this potential sell-off could have massive ripple effects on American mortgage rates and housing affordability at a time when the market is already strained. 

2025 MET Gala's Economic Impact From Black Dandyism                                                       

CBX Vibe:

The 2025 MET Gala's theme, "Superfine: Tailoring Black Style," inspired by Monica L. Miller’s groundbreaking book, Slaves to Fashion: Black Dandyism and the Styling of Black Diasporic Identity, marks a pivotal moment for Black fashion, especially Black menswear. Dandyism is "a literary and artistic style of the latter part of the 19th century marked by artificiality and excessive refinement." This celebration of Black dandyism showcases the artistry and tenacity Black men displayed through style during the 18th and 19th centuries. 

Beauty Brands Best Kept Secret Is That Inclusivity Wins Big                                                     

CBX Vibe:

Since the Trump crackdown, a lot of companies have eradicated their DEI initiatives and the response from their clients has sent their sales on a downward spiral. A few have taken a stand and still have their DEI initiatives in place. Diverse beauty brands that cater to a wide range of skin tones, hair textures, and cultural backgrounds that have historically been marginalized or underserved in the beauty industry are part of this wave. 

Tune-in Tuesdays!

Rwanda is raising eyebrows over receiving deported migrants from the U.S. Is this a strategic partnership to gain geopolitical leverage and economic aid, or is Rwanda risking its international reputation by becoming a destination for deportees?

A. “Formation” by Beyoncé – Rwanda might be stepping into formation with global powers, shaping its image as strategic and unafraid to handle complex humanitarian roles in exchange for influence and funding
B. “Dirty Laundry” by Kelly Rowland – This could be a transactional but risky move and Rwanda might be betting on a deal that looks better on paper than in practice
C. “Bad Romance” by Lady Gaga – Rwanda and the U.S. may be locked in a high-stakes, messy alliance; it looks good from a distance, but the moral and logistical complications could turn passion into regret

What are your thoughts on this? Tune in next Tuesday to see which jam captures the prevailing sentiment!

A  |  B  |  C

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Last week’s results are in and it seems people think China should have a back up plan before turning off ‘All of the Lights’ on the U.S.

Resale Market For Luxury Watches, Cars & Wine Is Booming Thanks To Tariffs                                                   

CBX Vibe:

The rising tariffs on imported luxury goods are transforming the global luxury ecosystem. As high-end imports from Patek Philippes to Ferraris become more expensive, buyers are shifting toward the resale market, where the cultural and historical value of rare vintage items often holds more appeal than their newer counterparts. No longer a fringe market, the global luxury resale industry is projected to grow from $32.6 billion in 2021 to $51.77 billion by 2026, signaling not just an economic trend, but a redefining of what it means to buy, own, and invest in luxury. 

Coca Cola Gives BodyArmor A Makeover To Sip To Success                                                 

CBX Vibe:

Coca-Cola (KO +0.50%) has invested in a complete rebrand of its flagship sports drink Bodyarmor to gain more traction in the performance drinks category. It will be the brand’s largest-ever media investment to reinvigorate customer purchase and loyalty. Bodyarmor’s rebirth includes new packaging, revised logo and an athlete-packed advertising campaign that includes WNBA star Sabrina Ionescu and NFL player Joe Burrow. Competition in the category will certainly be heating up this summer, so Bodyarmor’s revised strategy comes at an ample time to build sales momentum. 

Vibes of the Week

China’s “Hold Up” on bonds could spell doom for mortgages, as Beyoncé explains in our CBX Vibes!