The $500/Email Bankruptcy Bonanza, Or Does Capstone Heart Flight Club
Submitted by Tyler Durden on 08/12/2009 - 19:11Bankruptcy advisors are increasingly having to defend the exorbitant fees (expenses, not so much - see below) that they are charging from their zombied clients, which in the absence of traditional banker products has become one of the primary sources of revenue for whatever is left of the financial advisory industry. A wonderful case in point is today's defense by Evercore of the ridiculous fees they collected for quote-unquote advising on the most predetermined and advice-remote transaction in the history of bankruptcy, i.e. the nationalization of General Motors via the stalking horse legitimization mechanism.
Elizabeth Warren "We Have A Real Problem Coming"
Submitted by Tyler Durden on 08/12/2009 - 17:13The head of the Congressional Oversight Panel provides a solid dose of reality, and some scary words for the bulls.
Daily Credit Summary: August 12 - Bearish Breadth
Submitted by Tyler Durden on 08/12/2009 - 16:19Spreads were mostly wider in the US today as ExHVOL is the only index tighter thanks to HVOL's underperformance (with HY underperforming IG as the former broke above 800bps intraday). Indices generally outperformed intrinsics (as it appears single-name protection buyers were hedging with index protection) with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL outperformed but widened the skew, ExHVOL outperformed pushing the skew wider, XO's skew increased as the index outperformed, and HY outperformed but narrowed the skew. IG opened gap at its wides and did leak tighter most of the day but intrinsics did not follow and the weakness in HY suggests that investors were looking at HY-IG decompression.
Closing Market Summary
Submitted by Tyler Durden on 08/12/2009 - 15:06
- IG Wider 0.5bps to 113.5
- HY Wider -7/16 to 89 7/16
- Stocks... closing at VWAP.
Afternoon Market Summary
Submitted by Tyler Durden on 08/12/2009 - 13:55IG12: 114bps + 1.5 bps (weaker)
IG12 intrinsics: +6 bps (much weaker)
HY12: 791bps + 10 bps (weaker)
HY12 intrinics: +31 bps (much weaker)
30 Year: 4.52%, +8 bps (weaker)
DXY: poundage
Equities: who cares, just feed more redbull to WOPR
Substantial Confusion Percolates On Volume Ramp
Submitted by Tyler Durden on 08/12/2009 - 13:38
Left Right Left Right Up Down Up Down A B A B Reset Start (Triangle Square for extra lives)
FOMC Minutes
Submitted by Tyler Durden on 08/12/2009 - 13:17QE Ending: "To promote a smooth transition in markets as these purchases of Treasury securities are completed, the Committee has decided to gradually slow the pace of these transactions and anticipates that the full amount will be purchased by the end of October."
The Feds & UBS Reach a Squeal of a Deal
Submitted by Travis on 08/12/2009 - 12:28Yeah, the Swiss... "Oh, they're neutral? right?" Haven't they always been? "They say nothing?" Well, maybe not then- but now, the Feds and UBS AG have reached a deal to squeal on some 52,000 potentially tax-evading Americans.
$23 Billion 10 Year Auction Results
Submitted by Tyler Durden on 08/12/2009 - 12:13
Results out: only $14.4 billion indirects tendered out of total $57 billion competitive. Of the $14.4 billion, $10.4 billion was allocated. Indirect bids 45.7% vs. Avg. 35.25% (Prev. 32.11%). Indirect bid-to-cover was 1.39. Overall bid-to-cover including highly motivated primary dealers was 2.49. Allocated at 3.734% high yield vs expected 3.708%.
IWM-SPY Unwind In Process?
Submitted by Tyler Durden on 08/12/2009 - 11:47
Crap stocks (RUT) outperforming quality (SPY) again. The early morning action was likely precipitated by some colorful index arbing.
CLSA's Jim Walker On Asia: The Game Is Up
Submitted by Tyler Durden on 08/12/2009 - 11:33"For 2009, and perhaps beyond, preservation of capital will again be the name of the game. Cash is king with a liberal helping of government securities in the portfolio as well - even at today's richly inflated prices. Our key message to investors is that the asset management game has now changed. Unfortunately, for those that believe we are still in the same economic world as was the case in the Greenspan era, the game is up."
Dollar Plummets
Submitted by Tyler Durden on 08/12/2009 - 11:20
The newly hired traders at the Federal Reserve proving their mettle.
Art Samberg In Trouble: SEC Has Issued Wells Notice To Pequot Alleging Insider Trading In MSFT In 2001
Submitted by Tyler Durden on 08/12/2009 - 10:56Developing story
