RIEF Outperforms S&P by 2.06% MTD, RIFF Plunges
Submitted by Tyler Durden on 06/22/2009 - 12:02The high/low beta stratification seems to have finally worked out for RIEF, although likely too late as anxious investors have said "basta", and also just in time to watch RIFF get annihilated with a -7.79% absolute (ly disastrous) performance MTD. No surprise all fees there have been waived. At this rate of decline the "Futures" Fund certainly has no future.
Frontrunning: June 22
Submitted by Tyler Durden on 06/22/2009 - 11:28- Wallgreen's conference call: Consumers shopping closer to payday, saving more, using less credit
- Insiders apparently don't watch CNBC, don't smoke greenery, as they sell shares at fastest pace in two years (Bloomberg)
- The truth - Nobody has any idea what is going on: World Bank, Roubini
The Fledgling Conflicts Of Interest At The Nouveau Rating Agencies
Submitted by Tyler Durden on 06/22/2009 - 04:46A lot has been said recently over the much-maligned traditional rating agencies: S&P and Moody's. The rampant conflicts of interest over the past decade which everyone on Wall Street was all too aware of, somehow were a shock to politicians such as Barney Frank. In fact these very conflicts have been proposed to be the root of the credit and mortgage crisis (one can see how that is not a futile argument: if an excel workbook crashes your PC if you try to assume declining housing prices someone should have raised a red flag somewhere).
Guest Post: China - Economic Catastrophe Unfolding
Submitted by Tyler Durden on 06/22/2009 - 01:59Submitted by Terence Doherty, guest author (via Phil's Stock World)
Here’s some recent news about the real estate markets in China. I think it is fascinating watching how these things unfold. This proves once again that the lesson of history is that we don’t learn the lessons of history.
Guest Post: China - Economic Catastrophe Unfolding
Submitted by Tyler Durden on 06/22/2009 - 01:59Submitted by Terence Doherty, guest author (via Phil's Stock World)
Here’s some recent news about the real estate markets in China. I think it is fascinating watching how these things unfold. This proves once again that the lesson of history is that we don’t learn the lessons of history.
PIMCO Does Not Believe In Relative Value
Submitted by Tyler Durden on 06/22/2009 - 01:55In the accompanying presentation, it is easy to see why Bill Gross' PIMCO is highly bullish on credit of any variety. As the table below demonstrates, taken straight out of the biggest bond fund's May 2009 presentation "Investing for the Journey and the Destination: What it means across the Capital Structure" PIMCO doesn't see any overvalued instruments in the credit realm: MBS, IG, EM and HY/Loans all have wonderfully green and positive metrics in the valuation column.
PIMCO Does Not Believe In Relative Value
Submitted by Tyler Durden on 06/22/2009 - 01:55In the accompanying presentation, it is easy to see why Bill Gross' PIMCO is highly bullish on credit of any variety. As the table below demonstrates, taken straight out of the biggest bond fund's May 2009 presentation "Investing for the Journey and the Destination: What it means across the Capital Structure" PIMCO doesn't see any overvalued instruments in the credit realm: MBS, IG, EM and HY/Loans all have wonderfully green and positive metrics in the valuation column.
PIMCO Does Not Believe In Relative Value
Submitted by Tyler Durden on 06/22/2009 - 01:55In the accompanying presentation, it is easy to see why Bill Gross' PIMCO is highly bullish on credit of any variety. As the table below demonstrates, taken straight out of the biggest bond fund's May 2009 presentation "Investing for the Journey and the Destination: What it means across the Capital Structure" PIMCO doesn't see any overvalued instruments in the credit realm: MBS, IG, EM and HY/Loans all have wonderfully green and positive metrics in the valuation column.
On The Uselessness Of LIBOR
Submitted by Tyler Durden on 06/21/2009 - 16:54Most financial experts are aware that the only reason the economy has not yet collapsed entirely, is due to the trillions in governmental safeguards and industrial subsidies. Zero Hedge has written extensively on the topic, and it is nowhere more obvious than here, that virtually the entire financial system is backstopped by explicit and implicit guarantees.
On The Uselessness Of LIBOR
Submitted by Tyler Durden on 06/21/2009 - 16:54Most financial experts are aware that the only reason the economy has not yet collapsed entirely, is due to the trillions in governmental safeguards and industrial subsidies. Zero Hedge has written extensively on the topic, and it is nowhere more obvious than here, that virtually the entire financial system is backstopped by explicit and implicit guarantees.
Sunday Readings
Submitted by Tyler Durden on 06/21/2009 - 14:52- What low bond recovery rates mean: 45-55% cumulative defaults (Vanguard, hat tip Richard) [HY12 at 81? haha]
Absolute Priority Saturday
Submitted by Tyler Durden on 06/21/2009 - 02:42Creditors' rights at midnight. Absolute Priority Saturday on Radio Zero.
Exercise absolute priority and get your slot now (supplies are limited). Live from 12:00am on.
Priority claims, pre-petition requests, 363 sale objections, etc: AIM: marla@zerohedge.com
http://s4.viastreaming.net:7760/listen.pls
Saturday Readings
Submitted by Tyler Durden on 06/20/2009 - 15:25- Steve Jobs had a liver transplant 2 months ago (WSJ)
- Iran's political turmoil creates dilemma for Obama at home and overseas (Bloomberg)
- Cutting the Gordian Knot of GE Theory (AxiomaticEconomics)
- The Plaza stirs with 30 For Sale listings for a total of $250 million (
Zero Hedge Radio
Submitted by Tyler Durden on 06/20/2009 - 04:011am. Saturday morning. Why not?
http://s4.viastreaming.net:7760/listen.pls
GM Dissident Bondholders File Objection To 363 Sale
Submitted by Tyler Durden on 06/19/2009 - 20:05Today the Unofficial Committee of Family and Dissident GM bondholders filed an objection to the 363 sale (link here). And any objection that starts with a quote from our current President's inaugural address promises to make for an interesting read: this one does not disappoint. The committee brings up a plethora of valid points, most of which go to the heart of the matter namely the speed of attempted 363 sale process.
