Daily Credit Summary: June 23 - Narrow Ranges
Submitted by Tyler Durden on 06/27/2009 - 15:20Spreads were mixed in the US with IG marginally worse, HVOL a smidge wider, ExHVOL weaker, XO wider, and HY rallying (as intraday ranges were generally half their average levels). Indices generally outperformed intrinsics (with curves flattening and rolls decompressing as unwinds seem the theme of the week) 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's skew increased as the index outperformed, and HY outperformed but narrowed the skew.
Jim Simons Lasts A Whole Hour Without Chain Smoking A Carton Or Two
Submitted by Tyler Durden on 06/27/2009 - 15:19Much like our President who earlier announced he had quit smoking, with the exception of inhaling the occasional pack every time the mortgage spread passes 100 bps or gold gets close to $1,000. Deep thoughts from the SPARC-tamer himself. Oddly absent is a discussion of stochastic processes involving the massive loss of capital for LPs caught on the wrong end of a huge high-beta short squeeze.
Mass Layoff Events Continue Accelerating
Submitted by Tyler Durden on 06/27/2009 - 15:16
It was only three months ago when people assumed that the turnaround in BLS' metric for mass layoff events meant an end to something or another. Nope. For the third straight month both mass layoff events and initial claimants for insurance picked up. There is nothing even remotely optimistic about this data...
Visteon Final Bond Recovery Price: 3 Cents On The Dollar
Submitted by Tyler Durden on 06/27/2009 - 15:12Market tests are useful as they best indicate just what is the real value of hundreds of billions of distressed securities stripped away from any unwarranted optimism and green shoot propaganda. Today's Visteon CDS Auction was just one such test. And if there was a way to grade the test, it would be an emphatic F: not so much for bankrupt Visteon which is already in the morgue, but for other comparable auto suppliers whose bonds and loans recently have seen overambitious PMs buying their debt as if every single credit instrument would be rolled into Taxpayer Capital LLC's Worthless Assets Fund.
US Trustee In GM Case Throws Up All Over Evercore Fee App; Calls Fee Demand "Staggering" and "Incredible"
Submitted by Tyler Durden on 06/27/2009 - 15:10Finally someone is sticking against the taxpayer rape going on behind the scenes each and every day in bankruptcy court (even if it is paradoxically the government itself), in which taxpayers directly pay Wall Street's investment banks who pretend to facilitate Obama's pet UAW-placating and merely liquidation-delaying projects.
Redbook Retail Index Plunges Again
Submitted by Tyler Durden on 06/27/2009 - 14:57
In what is surely a shocking turn for the Mainstream Media, today's horrendous Johnson Redbook Index numbers were curiously not noted anywhere. As Zero Hedge believes in not depriving its audience of data points, especially those lacking a green steroid shot, the charts below indicate just much of a lack to the US budget deficit, upcoming consumer subsidies will be for President Obama (and taxpayers).
Intraday Charting
Submitted by Tyler Durden on 06/27/2009 - 14:51
As Obama speaks and investors recall what it was like to short the market at every TV appearance of the president, the dollar is getting pillaged: the DXY just dropped below the 80 support level after Europe has said it will start tightening soon.
Whalen And Griffin On OTC Derivatives
Submitted by Tyler Durden on 06/27/2009 - 14:47From yesterday's hearing before the U.S. Senate on Over The Counter Derivatives. The full archived webcast can be found here - some perspectives from Citadel's Griffin and Robert Pickel, CEO of ISDA, but most notably a very exhaustive report from Chris Whalen of IRR. While I am not as much a proponent of regulation of CDS as Whalen is, he provides an impressive narrative of recent events which, if one were so inclined, could provide CDS-haters enough ammo to make a sufficiently strong case.
More Bad News For Boeing: Sea Launch Files For Bankruptcy
Submitted by Tyler Durden on 06/27/2009 - 14:43Commercial satellite-launch services provider Sea Launch, which is 40% owned by 787 on time manufacturer extraordinaire, Boeing, filed for bankruptcy last night in Delaware (09-12513). The Long Beach company which has used the Kazakhstan Baikonur Space Center for rocket launches in the past, has listed liabilities of over $1 billion.
Mortgage Vigilantes Beating Death Drums
Submitted by Tyler Durden on 06/27/2009 - 14:30
Even though the market's brief hiccup into green territory was promptly corrected (as expected earlier), it is the mortgage vigilantes' turn to beat the death drum. The 30 Yr Mortgage - 10 Yr UST spread is not helping the new, existing, and otherwise home sale green shoots. And this on top of the Treasury's $7 billion in Open Market purchases of bonds yesterday.
Morning News Recap
Submitted by Tyler Durden on 06/27/2009 - 14:27Some developing stories:
- US Justice department says NYT report saying it would drop suit against UBS is "simply untrue" (source BNO)
- Austria has announced it will sell debt denominated in USD, CHF and JPY. Good to see someone's fair opinion of what is most overvalued in this world.
- Greece vehemently denies rumors it may drop EURO. Dick Fuld vehemently denied Lehman is going bankrupt two days before it went bankrupt.
- Iran has expelled two UK diplomats (based on Iranian Tweeting, so grain of salt)
- And a personal favorite: BOE's Dale says at some point, UK output will stop falling
Snapshot Of The GS Conviction List
Submitted by Tyler Durden on 06/27/2009 - 14:24Zero Hedge had some fun recently analyzing the extensive thought process that goes into the decision making that leads to the addition (and, more relevantly, subtraction) of any given stock from the Goldman Sachs conviction list. One could say a case study of exhaustive insight and careful risk management it was not. After a flurry of requests, I provide an unabridged, updated snapshot of the entire Goldman Sachs Conviction List (both Buys and Sells) for North American stocks.
Goldman Sachs Analyzes Its Risk Exposure
Submitted by Tyler Durden on 06/27/2009 - 13:44
Until yesterday, the only real risk at the 5th branch of government (4th is the PIMCO/BlackRock two headed hydra) was making sure that 2009 is the year of the biggest bonuses on record (amusingly, now that Cerberus has all but followed Chrysler to its ignominious end (oddly missing from the company's industry expertise page - one would think the Dan Quayle-advised company learned more from this cataclysm than anything else), maybe Stephen Feinberg can sell the brand to the GS/PIMCO/BlackRock triumvirate and generate at least some recovery for its long-suffering LPs: the name would be so much more appropriate then).
Daily Highlights: 6.23.09
Submitted by Tyler Durden on 06/27/2009 - 13:41