$37 Billion 3 Year Auction Results
Submitted by Tyler Durden on 08/11/2009 - 12:24
- Yield 1.780% vs. Exp. 1.791%
- SOMA $5.7 billion
- Bid/Cover 2.89 vs. Avg. 2.7 (Prev. 2.62)
- Indirect bids 62.5% vs. Avg. 45.11% (Prev. 54.15%)
- Alloted at high 13.08% (BBG)
Average TICK Dropping
Submitted by Tyler Durden on 08/11/2009 - 11:32
One dollar for whoever has access to the morning memos distributed today at Federal Reserve Capital LLC.
Update On NYSE Order Cancellation
Submitted by Tyler Durden on 08/11/2009 - 10:58
The NYSE has issued an updated System Status and notified traders that all orders in over 40 stocks, among them BRK, entered before 11:45 am have been canceled. Trading in these securities is expected to resume at noon. Even robots need a vacation.
Today's OMO Update
Submitted by Tyler Durden on 08/11/2009 - 10:37Today, at 11:00am, the Fed was supposed to close an OMO Purchase of 17 Cusips, with maturities ranging from 2026 to 2039. The original auction was Cancelled according to the NY Fed website. The auction was subsequently completed with a 20 minute closing time delay.
Federal Reserve Capital LLC; Ben Bernanke Earning Your 2 and 20 With Daily Short Covering Diligence
Submitted by Tyler Durden on 08/11/2009 - 09:42"When people kid around that the Fed has become another hedge fund now that it is the lender of first, second and last resort — to mention the market-maker for everyone including RVs and mobile homes — it really is no joke at all. See NY Fed in Hiring Spree as Assets Soar. The New York Fed is seeking to bolster its staffing of traders — not research staff, but traders — by nearly 70%!! When will the Fed start hiring investment bankers? That is what we would like to know."
The Paulson Ethics Waiver
Submitted by Tyler Durden on 08/11/2009 - 09:11Presented is the recusing ethics waiver that allowed Hank Paulson free reign to do as he saw fit when bailing out Goldman Sachs. The next question is whether Mr. Fred Fielding recused himself of recusing Hank, and just what authority he was granted by the president to allow such unprecedentedly conflicted individuals as the former CEO of Goldman Sachs to do everything in his power to not only place unlimited collect calls into Lloyd Blankfein's office but to make sure that Goldman was the primary beneficiary of all the banking cataclysms of 2008.
August COP Oversight Report: $658 Billion In Total Level 3 Assets, Small Banks Need "To Raise Significantly More Capital"
Submitted by Tyler Durden on 08/11/2009 - 08:27The Congressional Oversight Panel has released its August report which contains some much more dire language about the prospects of the U.S. banking system than did the joke that was the Stress Test, especially in the small/middle bank sector.
Redefining Overbought
Submitted by Tyler Durden on 08/11/2009 - 08:06
The 21-day MA on the NYSE Up Issues Ratio is the most stretched since 1991.
Frontrunning: August 11
Submitted by Tyler Durden on 08/11/2009 - 08:01- CIT delays report, could have to file for bankruptcy (Reuters)
- In an ironic example of what happens when the government is not running the economy, Ruble falls in longest slump since February on record GDP drop (Bloomberg, h/t Nic)
- Fitch warns Midtown loans face default (Real Deal, h/t Ed)
- SEC investigating Huron for accounting errors (Reuters)
- Double dip recession? (Washington Times)
Daily Highlights: 8.11.09
Submitted by Tyler Durden on 08/11/2009 - 07:35- Asian stocks gain for the second day on speculation profits will increase.
- Bad assets still threaten bank stability, congressional watchdog says.
- Bank of Japan keeps key rate at 0.1%, focuses on risks to economy, prices.
- "Cash for clunkers" program generates more than 245,000 vehicle sales in 2 weeks.
- China backs off from allegations that Rio Tinto cost it $102B in overcharges.
Chinese Exports Fell 23% YoY In July
Submitted by Cornelius on 08/11/2009 - 01:14Following an expansionary announcement by Chinese Premier Wen Jiabao, Chinese market data paints a mixed picture on Chinese economy.
Wily Quakers Outsmart Crimson Again, Penn Endowment Down 15.7% In 2008, Half Of Harvard Collapse
Submitted by Tyler Durden on 08/10/2009 - 22:03Who'd a thunk the IRR on the new, and oddly phallic Huntsman Hall would be quite so attractive. Well, it wasn't really positive, but these days down little is the new killing it (absent being too big to fail or too UAWed not to have a 30 day successful and gov't backed stalking horse auction). The Philadelphia university is expected to see it endowment decline by only 15.7% in the fiscal year ending June 2009, a stark contrast to bigger and "smarter" rivals such as Harvard and Yale, which are set to be down 30% and 25%, respectively.
SL Green's Mysterious Cap Rate Calculations, And Budding Israeli VoIP Operators-cum-Midtown Real Estate Investors
Submitted by Tyler Durden on 08/10/2009 - 20:10Today, SL Green announced a preliminary sale transaction (subject to assumable financing, an out wider than VaR exclusion loopholes) which is supposed to herald the coming of the new mid-town CRE renaissance. An ebullient SL Green CEO Marc Holliday had this to say: "This is a first, but significant step towards the sale of interests in 485 Lexington Avenue. If ultimately approved, the transaction would demonstrate that the Midtown Manhattan office market continues to stand as one of the world's top locations and that investor interest is once again on the rise." Zero Hedge is waiting with baited breath for the Holliday mirage to dissipate, while in the meantime Class A office space in 767 Fifth Avenue can be sublet for $60/sq foot.
Judge Rakoff Refuses To Approve SEC's "Not Remotely Reasonable" Settlement With BofA
Submitted by Tyler Durden on 08/10/2009 - 17:26Judge Rakoff demonstrates some brilliant logic which is completely lost to both the CEO of Bank Of America and to the Chairwoman of the SEC: "If they would not have paid out $3.6 billion, they would have had a loss of $3.6 billion less, no?"
San Fran Fed Demonstrates Artificiality Of Libor
Submitted by Tyler Durden on 08/10/2009 - 17:05In response to turmoil in the interbank lending market, the Federal Reserve inaugurated programs to bolster liquidity beginning in December 2007. Research offers evidence that these liquidity facilities have helped lower the London interbank offered rate, a key market benchmark, significantly from what it otherwise would have been expected to be.
