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.
Houston, We Have 3:30 PM Lift-Off Right On Schedule
Submitted by Tyler Durden on 06/19/2009 - 18:33Because, like clockwork, the entire market always turns on buy programs at the same time. Who cares about paying a good price when you are playing with other people's money in a SPARC-manipulated playground. Mr. T pities the retail fools who thought they have some chance of making money in this WWF-esque rigged spectacle.
Daimler Set To Purchase Porsche Stake
Submitted by Tyler Durden on 06/19/2009 - 18:04The latest development in the Porsche-Volkswagen saga comes courtesy of German Manager-Magazin, which notes that Daimler is apparently in advanced negotiations to acquire a stake in the troubled luxury carmaker. It was still unclear what happened with the massive VOW options held by Porsche ahead of expiration today: as the company did not have the money to exercise them earlier, one can only hope that Porsche scrambled enough cash to at least roll the options.
Forward Volatility Differential Plunges To 2008 Lows
Submitted by Tyler Durden on 06/19/2009 - 17:47The VIX - VXV relationship has dropped to a 2009 low, implying the 3M forward vol is abnormally high (projected volatility) relative to 1M (VIX), and extreme lows coincide with index turning points.
Is Credit Suisse Going For Broke With ETFs?
Submitted by Tyler Durden on 06/19/2009 - 15:00Well, the "for broke" part is hopefully a pun. But based on their most recent holdings, which among others include 104% of the IYR Real Estate ETF, Credit Suisse is certainly ploying something here (one hopes, or else that is one big fat finger). When you have the balance sheet of the Swiss National Bank to back you up, you don't really care much if you overload the boat. Of course, this is excatly what Boaz Weinstein was thinking when the world blew up in his face.
Is Credit Suisse Going For Broke With ETFs?
Submitted by Tyler Durden on 06/19/2009 - 15:00Well, the "for broke" part is hopefully a pun. But based on their most recent holdings, which among others include 104% of the IYR Real Estate ETF, Credit Suisse is certainly ploying something here (one hopes, or else that is one big fat finger). When you have the balance sheet of the Swiss National Bank to back you up, you don't really care much if you overload the boat. Of course, this is excatly what Boaz Weinstein was thinking when the world blew up in his face.
