Daily Highlights: 8.14.09
Submitted by Tyler Durden on 08/14/2009 - 07:36- Asian stocks gain on speculation improving earnings will extend a 5-month rally in equities.
- China may boost spending on oil, mining acquisitions by half this year.
- Crude Oil rises a third day as economic recovery to spur demand for fuels.
- Hong Kong's yearlong recession may be over as China rebound bolsters trade.
- India may spark $39B of share sales with cap on controlling stakes.
- Japanese demand for services unexpectedly rose in June on stimulus measures.
- US Industrial output probably rebounded in July as auto plants reopened.
Federal Reserve Balance Sheet Update: Week Of August 12
Submitted by Tyler Durden on 08/13/2009 - 22:53
Foreign holdings of US Securities decreased for the first time in 5 months by $299 million sequentially (weekly) to $2,809.9 billion from $2,810.2 billion in the prior month. Keep in mind in the same time period the Fed purchased over $16.6 billion of Treasuries, indicating that in the last week the Fed was the only purchaser of Treasuries. In a normal environment this would be a very troubling development.
Radio Zero: Studio Zero Goes Beta
Submitted by Marla Singer on 08/13/2009 - 21:35Having moving into our new facility and having liberated or resurrected a number of pieces of audio hardware thought long lost, eventually we had to put the new digs through their paces. What better night than a Thursday for Studio Zero's first public beta?
The fun begins at 10:45pm ET and continues until the red bull runs out and the convenience store down the street is closed.
Update: http://cdo.zerohedge.com:8000/listen.pls
Chat up the DJ(s) and send us mp3 requests: AIM: radiozh
Collapse In The Wake Of The Fed's Wall Street Bubble
Submitted by Tyler Durden on 08/13/2009 - 21:06"We see the summer pause as natural and as unemployment rises, there’ll be more foreclosures and lower prices. The depression is only pausing to catch its breath." - Bob Chapman
The New Bull Market Fallacy
Submitted by Tyler Durden on 08/13/2009 - 18:40An impressively comprehensive and succinct explanation of the events that have gotten us here, and where we may be heading.
Was Larry Summers Selling CDOs To Asian Sovereign Wealth Funds After The Collapse Of The Bear Stearns Hedge Fund?
Submitted by Tyler Durden on 08/13/2009 - 18:16The man cited to be Ben Bernanke's replacement if and when the stock market (not the economy) takes a decided turn for the worse, Larry Summers, has been implicated in an act that may make his transitioning into his role of running monetary policy for the world's biggest economy slightly more complicated. A report that was issued several months ago by Asia Times' blog discloses that the man who has President Obama's attention on all matters financial was in fact selling the AAA-rated tranches of toxic CDOs held by his former employer, multi billion hedge fund D.E. Shaw after the collapse of the CDO-loaded Bear Stearns hedge fund.
Moody's Chimes In On The Consequences Of The Flash Trading Ban
Submitted by Tyler Durden on 08/13/2009 - 17:45In their weekly commentary piece, among many other things, Moody's discussed the downstream impacts of the ban of Flash, IOIs and other existing practices. They provide a different perspective in terms of a pros/cons analysis of the upcoming changes to both brokers-dealers and exchanges. Nothing earth shattering, but useful information to keep a sense of perspective in light of upcoming market structure developments, and who stands to lose the most.
Daily Credit Summary: August 13 - Credit Non-Confirmation
Submitted by Tyler Durden on 08/13/2009 - 16:51Spreads were broadly wider in the US as all the indices deteriorated (with HY12 underperforming IG and closing above 800bps for the first time in over two weeks). Indices generally outperformed intrinsics with skews widening in general (as we continue to see single-names leading the market wider and index hedges seemingly dominant) as IG's skew decompressed as the index beat intrinsics, HVOL outperformed but widened the skew, ExHVOL outperformed but narrowed the skew, XO's skew increased as the index outperformed, and HY's skew widened as it underperformed.
Deep Thoughts From Bob Janjuah
Submitted by Tyler Durden on 08/13/2009 - 16:09The big brain from RBS chimes in with highly abbreviated yet quite insightful perspectives once again
Bollinger Band Algorithms
Submitted by Tyler Durden on 08/13/2009 - 15:04
Someone really hitting the brakes with the Bollinger Band ceiling today. (Yeah, we agree it's stupid voodoo. Don't shoot the messenger). That's what happens when algos run amock on no volume and nobody will pile in except on down moves. In a word - about as pathetic trading as it gets.
CMBS Bankrutpcy-Remoteness Issues Escalating
Submitted by Tyler Durden on 08/13/2009 - 14:17The recent ruling in the GGP bankruptcy case may open the door for a vast universe of structured CRE entities to funnel into bankruptcy court, making lives for holders of assorted CMBS securities rather interesting, especially after the recent unprecedented run up on hopes of governmental bail outs in perpetuity. After all there is only $3 trillion in max pain: a mere week's output for the printing presses at full throttle.
Tomorrow's Economic Calendar
Submitted by Tyler Durden on 08/13/2009 - 13:45Consumer Price Index – July Time: 8:30 am Forecast: 0.0% overall, 0.2% core
Industrial Production & Capacity Utilization – July Time: 9:15 am Forecast: 0.1% industrial production, 68.1%
University of Michigan Consumer Confidence – August Preliminary Time: 10:00 am Forecast: 68.5
NYSE Issues Update On Continuing Trade Outages
Submitted by Tyler Durden on 08/13/2009 - 13:22
And provides a convenient location for those impaired by the NYSE to demand monetary compensation.
Last Week's Insiders Transactions: 10 Buys For $60 Million, 136 Sells For Over $1.15 Billion
Submitted by Tyler Durden on 08/13/2009 - 13:16Courtesy of Finviz, the ratio of insider buying to selling transactions is 10 to 136. Total transaction value: Buys: $60.1 million; Sells: $1,146 million. This compares with last week's buys for $13.4 million and sells for $1,042 million. Over $2.1 Billion in insider sales in two weeks.
$15 Billion 30 Year Auction Results
Submitted by Tyler Durden on 08/13/2009 - 12:09- 4.54% high yield vs. exp. 4.556%
- 2.54 Bid-to-cover vs. Avg. 2.08 (Prev. 2.14)
- Indirect bids 48.1% vs. Avg. 33.21 % (Prev. 32.85%)
- 1.72 Bid-to-cover on indirects accepted to tendered
- Alloted at high 16.77% (BBG)
