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)
A Modest Proposal For Dealing With The Soon To Be $1 Quadrillion + National Debt
Submitted by Tyler Durden on 08/13/2009 - 11:36
All Hail Octavia!
U.S. government stages fake coup to wipe out national debt
Regions Financial's $22.8 Billion Dollar Sink Hole
Submitted by Tyler Durden on 08/13/2009 - 11:19The FASB's rule mandating quarterly disclosure of Fair Value of toxic loans indicates that most financial firms are still very deep underwater. Case in point: Regions Financial, whose entire Stockholders' Equity would be in the red (and the firm would be in conservatorship at best) at this moment if the firm were to assign fair value to its loan book.
RIEF: Down 3.43% For First Week Of August, Underperforms S&P By 5.85%
Submitted by Tyler Durden on 08/13/2009 - 10:04And the current week isn't shaping up much better. When will the pain for the gullible ones finally end?
Killing The Dollar Softly
Submitted by Tyler Durden on 08/13/2009 - 09:54
Remember when the dollar bounced back after the "phenomenal" GDP numbers? Neither do we. But at least stocks are up. More of a cushion for after the "even more phenomenal" 30 Year auction results come out today.
Credit Suisse On Flash Trading And Dark Pools, And General Regulatory Status Update
Submitted by Tyler Durden on 08/13/2009 - 09:29Read on for some major exciting changes to market structure.
