Daily Highlights: 7.28.09
Submitted by Tyler Durden on 07/28/2009 - 08:07- Asian stock markets move mostly in a tight range after their string of recent rallies.
- CFTC report to blame speculators responsible for driving oil-price swings.
- Coal producers cope with sluggish demand
- Crude Oil trades near a three-week high after gains in equities markets
- SEC firms up plan to limit short sales of stocks.
- AIG unit keeps $2.4B from asset sales as taxpayers wait for payment
Frontrunning: July 28
Submitted by Tyler Durden on 07/28/2009 - 07:53- Must read: Arizona set to implement recourse mortgages - this could be the beginning of the end (Housing Doom, h/t Credit Trader)
- Congratulations Ben - you have succeeded; dollar reaches 2009 low (Bloomberg) (yet less than $90 billion in foreign liquidity swaps left to pull... then what?)
- And here's to a healthy Euro: Lithuanian economy shrank 22.4% in Q2 (Bloomberg)
- High frequency traders say speed works to everyone's advantage (Bloomberg)
- Judge Drain does not lead to the sewer, stands up to pressure and follows arcane, little-appreciated thing known as the law: leaves Platinum Equity in the cold on Delphi (AP)
Spin Me a New Job- Call it What You Want, Stimulus Jobs May Be Just That- Spin.
Submitted by Travis on 07/28/2009 - 06:01Surprised? While the out-of-work scramble to find jobs, State government agencies and politicians are spinning on how many jobs are created under the stimulus plans.
Financial "Analysts" Good For One Thing - Hitting On Fox News TV Anchors
Submitted by Tyler Durden on 07/28/2009 - 01:31Fundamentals got you down? Worried that 19 year old kid with the trigger reflex, trading breakout chart formations and a stratospheric P&L will replace you any day now (especially if you are an expert on "finding good jobs in tough times")? Better use up all those TV-spots while you got them to hit on pretty, barely legal University of South Carolina anchors.
(At 2:25 am in the morning, a little levity is allowed: there is at least 7 hours before the short squeeze rips again.)
The Florida CRE Implosion Visualized
Submitted by Tyler Durden on 07/28/2009 - 00:13Has to be seen to be believed
CMBS Delinquency YoY Change: 585%
Submitted by Tyler Durden on 07/27/2009 - 21:55
Yes, that's 585%. No comment needed
Daily Credit Summary: July 27 - Dispersion Rising
Submitted by Tyler Durden on 07/27/2009 - 21:38Spreads were tighter in the US as all the indices improved (with HY and IG back to early SEP08 levels on an adjusted index basis). Indices typically underperformed single-names (as despite the late day surge to new tights in IG, we heard more single-name protection buying hedged via the index) with skews mostly narrower as IG underperformed but narrowed the skew, HVOL outperformed but widened the skew, ExHVOL intrinsics beat and narrowed the skew, XO underperformed but compressed the skew, and HY outperformed but narrowed the skew.
Wherein Zero Hedge (Belatedly) Decides That Dataless Dennis Is Beneath Our Notice
Submitted by Marla Singer on 07/27/2009 - 20:21Enough, already.
Ron Insana On HFT
Submitted by Tyler Durden on 07/27/2009 - 17:21Hey Ron, didn't realize your new position as a contributing editor on CNBC came with the contributing title of "Portfolio Manager." Didn't Stevie put a one year kibbosh on that? But I digress... And in all honesty I am surprised that you seem to have the correct spin on things (as per letter below from Jim Cramer's failed media experiment TheStreet).
Raymond James On Implications Of Flash Elimination - NYSE Biggest Winner...
Submitted by Tyler Durden on 07/27/2009 - 16:48...Although once the debate moves away from Flash to its natural progression into dark pools and ultimately HFT, watch out below: "Any move to restrict high frequency trading could have a significant impact on exchanges’ transaction fees as well as revenue earned from co-location; there is also the chance that efforts to restrict HFT in the equities world could bleed over into other asset classes as well, including futures. We view potential regulatory changes as a net negative for exchanges, but it is far too early to assess the impact of potential regulation on these two issues."
The clock is now ticking on the rigger Echange - Broker/Dealer oligopoly
1 To 3 Years Of Securities Recalls Aka Forced Squeeze To Go
Submitted by Tyler Durden on 07/27/2009 - 16:12After numerous posts on this blog discussing speculation of assorted forced buy ins, it seems that this phenomenon is quite factual and quite pervasive among the asset management community. As Zero Hedge has noted previously, forced buy-ins are a critical issue as it leaves shorts at the mercy of their securities lenders and repo desks (most of which are TARP recipients and thus beneficiaries of higher stock prices) which generically have the option of recalling lent out shares at a moment's notice, and thus creating artificial purchasing pressure: i.e. a forced short squeeze. According to Securities Industry News, in a recent survey by Callan Associates, over half of the respondents said they are undergoing a "controlled unwind" with their securities lending desks (aka State Street, BoNY, and Northern Trust).
NYSE Claims It Does Not Engage In Flash Trading
Submitted by Tyler Durden on 07/27/2009 - 14:05From an interview earlier with NYSE's Larry Leibowitz, who is surprisingly vocal against Flash trading. Larry - since the NYSE does not engage in Flash trading, can you please indicate whether or not the SLP program provides advance notice to Goldman Sachs ala Direct Edge's ELP program. Regardless, the escalation in the ECN wars is starting and should be a very interesting one to follow, especially now with a toothless and clueless Mary Schapiro stuck in the middle.
The Goldman VaR Exemption Question Escalates
Submitted by Tyler Durden on 07/27/2009 - 13:24It seems only yesterday that Zero Hedge had some questions in regard to Goldman's VaR Fed exemption. No response was received from 85 Broad. Today it appears several Congressmen, lead by Alan Grayson, are willing to drive a sharp stick pretty deep into the hornets' nest, by sending a letter directly to Wall Street Don Ben Bernanke, demanding an explanation exactly to the question of Goldman's VaR Exemption.
Do You See What Happens Larry To Market Neutral Funds When SLP Dominates Liquidity Provision?
Submitted by Tyler Durden on 07/27/2009 - 13:08Not much... In fact a mere 3.11% return YTD, below the 9.4% HFN aggregate average and the 4.7% return YTD. Of course, this excludes Goldman's $100MM trading days YTD. If one added those, the YTD MN return might easily be pushing 50%.
Schumer Letter To Mary Shapiro
Submitted by Tyler Durden on 07/27/2009 - 12:20"I write out of concern that the integrity of our capital markets is being compromised by the ability of some insiders to view order information before it is available to the entire market, and use electronic trading strategies to profit from that information at the expense of other investors"
