Warren Buffett Faces Stiff Competition From Senator Kit Bond
Submitted by Tyler Durden on 06/22/2009 - 13:18No, not with regard to who can put more money into struggling Hell's Angels' favorite company Harley Davidson, or who can launch another failed bond wraparound insurance company... No, we are talking Becky Quick of course, who somehow has a knack for attracting males 2-4 times her own age. In the clip below pay attention to Kit Bond's last words.
Loans Versus Bonds Relative Value: Week of June 18
Submitted by Tyler Durden on 06/22/2009 - 12:41The toxic grabfest is ending. This is best seen by the inversion in the secured/unsecured classes. While the loan universe moved 9 bps tighter over last week, the slow HY bus is still trying to load up on those Neiman Marcus bonds, hoping to see this piece of paper get taken out at par. Here's a hint - it won't.
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 (
