Daily Credit Summary: June 25 - Credit Not Buying It
Submitted by Tyler Durden on 06/27/2009 - 17:38Spreads were mixed in the US with IG tighter, HVOL improving, ExHVOL weaker, XO stronger, and HY selling off (but notably changes in credit markets were significantly less positive than in equities). Indices typically underperformed single-names with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL outperformed but widened the skew, ExHVOL intrinsics beat and narrowed the skew, XO underperformed but compressed the skew, and HY's skew widened as it underperformed.
Lear Set To File For Bankruptcy
Submitted by Tyler Durden on 06/27/2009 - 17:37Look at the chart below and memorize it well. The fate of countless other high beta, uber-garbage stocks that are lately flying like crazy, schizophrenic Hindenburgs will soon follow in the same pattern. In this particular case: Lear - the nth autosupplier which according to the WSJ is about to file for bankruptcy. The drop from $2.50 to $0.50 in two weeks should be considered all too carefully by all who listen to Cramer and the "buy stocks so GE can go up and pay us our salary for one more year at least" brigade.
Here Comes Russian Bank Nationalization
Submitted by Tyler Durden on 06/27/2009 - 17:35You didn't think we could beat the original communists at their own game now, did you.
Monetizing proletarians of the world - unite.
It's 3:55 PM: Do You Know Where Your End Day Market Ramp Is?
Submitted by Tyler Durden on 06/27/2009 - 17:34
VWAP Reversion Programs Picking Up Ahead Of Russell Rebalance
Submitted by Tyler Durden on 06/27/2009 - 17:31
Intraday Credit Observations
Submitted by Tyler Durden on 06/27/2009 - 17:28
People using "negative" proceeds from buying stuff to buy other stuff... Yes, one of those rare days where the money just comes out of nowhere and buys stocks, commodities, f/x and bonds all up at the same time. So here are the results of magical money growing on trees.
Art Laffer On Inefficient Market Theory
Submitted by Tyler Durden on 06/27/2009 - 17:25Art Laffer of Laffer Associates has some very good perspectives on why he sees 20 year of hell coming up for the US economy. With thoughts like "never heard of anyone spending themselves into prosperity" he is, of course, correct.
AIG's 10(b) 5 Fraud, And Goldman's CDO Collateral Calls
Submitted by Tyler Durden on 06/27/2009 - 17:24Recently uncovered critical documents disclosing details about AIG's CDO portfolio and collateral calls, indicate that during a December 5th conference call with Investors, Joe Cassano, famous for singlehandedly destroying capitalism and forcing most financial companies to be subsidized by US taxpayers in perpetuity, as well as then CEO Martin Sullivan, effectively commited 10(b) 5 fraud by misrepresenting material company conditions.
$27 Billion 7 Year Note Auction Results
Submitted by Tyler Durden on 06/27/2009 - 17:22- Yield 3.329% vs. Exp. 3.360%
- B/c ratio 2.82 vs. Avg. 2.35 (Prev. 2.26)
- Indirects 67.2% vs. Avg. 31.39% (Prev. 33.07%)
- Allotted at high 13.17%
Louis Gerstner: Kill The Casino Wall Street Has Become
Submitted by Tyler Durden on 06/27/2009 - 17:20In an interesting overture to killing the current casino culture that is enveloping capital markets, none other than IBM former CEO Louis Gerstner is recommending taxing short-term (less than 1 year) capital gains at 80%. While such a proposal is sure to kill 90% of participants in the capital markets casino which lately trade only on an intraday basis and nobody cares about fundamentals that may justify a long-term buy or hold (simply because anything long-term in this economy will ultimately result in a 0 valuation).
Bank Of England Gilt Buyback Issues Escalating
Submitted by Tyler Durden on 06/27/2009 - 17:19The Bank Of England has announced that it is excluding the 5% 2014 and 8% 2021 gilts from buybacks until notice. As this is likely indicative of the major weakness in the gilt curve, the US better sell all the 5-12 year comparable Treasuries it can asap.
Volkswagen Shares Set To Plunge?
Submitted by Tyler Durden on 06/27/2009 - 17:16German Government adviser says Porsche should sell some VW (VOW GY) shares to raise cash.
New York Times Sale Rumors Quashed... For Now
Submitted by Tyler Durden on 06/27/2009 - 17:13In an interview with MarketWatch's Jon Friedman, Janet Robinson, CEO of embattled former media titan and now merely distressed media company scrambling to plug debt covenant holes, New York Times, has announced that she has had it with other members of the evil, speculative media world.
Frontrunning: June 25
Submitted by Tyler Durden on 06/27/2009 - 17:12