Loans Versus Bonds Relative Value: Week of July 23
Submitted by Tyler Durden on 07/29/2009 - 10:11
The credit tightening squeeze is about to get silly. Indicative loans averaged a year to date tight of 461 bps while bonds were trading at 905 bps.
HFRXEMN Hits Low Point For 2009
Submitted by Tyler Durden on 07/29/2009 - 09:25
The HFRX Equity Market Neutral Index has hit a new low for the year. In other news, Goldman likely set to report record number of $100+ million trading days for the quarter.
NYSE Leaves Confidential Infrastructure Data Exposed
Submitted by Tyler Durden on 07/29/2009 - 09:07
"The information could allow an intruder to map the NYSE’s network architecture and determine what vulnerabilities exist in the system."
Paul Wilmott: "High-Frequency Trading May Increasingly Destabilize The Market"
Submitted by Tyler Durden on 07/29/2009 - 08:25Paul Wilmott: "Thus the problem with the sudden popularity of high-frequency trading is that it may increasingly destabilize the market. Hedge funds won’t necessarily care whether the increased volatility causes stocks to rise or fall, as long as they can get in and out quickly with a profit. But the rest of the economy will care."
Daily Highlights: 7.29.09
Submitted by Tyler Durden on 07/29/2009 - 07:52- Home Prices in US cities post monthly rise; consumer confidence declines.
- Japan stocks edge up amid corporate earnings, investors await US GDP data.
- Shanghai's index fell by 5% on disappointing corporate profits, lower commodity prices.
- US dollar mostly higher, gold falls in European morning trading.
- Akzo Nobel 2nd quarter net profit down 13 percent to $220M, shares rise on margins.
Frontrunning: July 29
Submitted by Tyler Durden on 07/29/2009 - 07:43- June Durable Goods down -2.5% on expectations of -0.5%
- Let's break up the Federal Reserve (WSJ)
- Americans rate Fed worst among 9 key agencies (SignOnSD, h/t Bob)
- CRE companies drooling at taxpayer generosity, plan to raise a whopping $3 billion via TALF in September, only $3.997 trillion to go (Bloomberg)
- China banks to slow lending with low targets (Reuters, h/t Gilgamesh)
Washington’s Gimmick For the Easily Sold- a Zero Hedge Glimpse at “Cash for Clunkers”
Submitted by Travis on 07/29/2009 - 04:54While some would debate they’ve bailed-out the auto industry enough, the United States government gets into the often gimmicky, very corny and highly questionable art of selling cars. With $1 billion on the table, it’s soon to be a new model year- and Uncle Sam wants… your shitty old car!
From GE Commercial Finance to Zero Hedge, With Love
Submitted by sacrilege on 07/28/2009 - 19:46GE Commercial Finance, Stamford Connecticut:
On behalf of the Zero Hedge staff, I want to take a minute to apologize for our filtering your 439 packets today at our firewall.
Paul Tudor Jones Video (v.2)
Submitted by Marla Singer on 07/28/2009 - 17:59~120 minutes of PTJ goodness. (Torrent file attached). We hear from the Zero Hedge Legal Team that we've been contacted by Agents of Mr. Paul Tudor Jones, who has asked us to remove the content we are not actually in possession of.
Quick Note On NAHB HMI
Submitted by Tyler Durden on 07/28/2009 - 17:43Certain anonymous bloggers have made odd allegations about the quality content of our recent piece The End Of The End Of The Recession (which for some odd reason has been lumped into the category of a "housing analysis"). It would behoove said blogger to realize there are numerous other components to a holistic report (and the economy) than merely housing (i.e., consumer, business, manufacturing and industry, and many, many more).
Daily Credit Summary: July 28 - Down Day
Submitted by Tyler Durden on 07/28/2009 - 16:46Spreads were broadly wider in the US (for the first time in over a week) as all the indices deteriorated. Indices typically underperformed single-names (but IG and HY both made wider tights and wider wides than yesterday) with skews widening in general as IG underperformed but narrowed the skew, HVOL underperformed but narrowed the skew, ExHVOL outperformed pushing the skew wider, XO's skew increased as the index outperformed, and HY's skew widened as it underperformed.
Citi Arb Revisited, Or Here Comes Max Pain
Submitted by Tyler Durden on 07/28/2009 - 16:21
Been a while since we looked at the Citi Arb chart (7.29x common - 1 Pfd): looks like the pummeling for the HFs who hold the arb is again reaching VOW max pain proportions, and with one billion shares traded to the upside today, the game theory among the fund managers who are still involved is about to get quite "defective" in a big hurry.
Fitch: Financial Companies Hold 99.7% Of All Derivative Contracts
Submitted by Tyler Durden on 07/28/2009 - 15:12Fitch has released a comprehensive study on derivatives held by various corporations and has come out with some disturbing results: as Zero Hedge's recent disclosure of data from the Office of the Comptroller of the Currency confirmed, the bulk of the derivative risk is concentrated not merely in the "financial company" category (99.7%) but in a subset of just five companies, which account for an "overwhelming majority" of derivative assets and liabilities.
Joe Saluzzi Discusses HFT On Fox Business
Submitted by Tyler Durden on 07/28/2009 - 15:10Impressive how much more informative Joe can be when he is not caught avoiding the book pitches of assorted blonde HFT "specialists" on CNBC.
