Archive - Apr 22, 2009

Financial company stock prices have been on a tear these days, undoubtedly based on glowing, solid results. After all didn't Wells just have a blow out quarter? What is that you say, $5 billion in "earnings" were based on FAS 157-4 reversal and accounting gimmicks?

Financial company stock prices have been on a tear these days, undoubtedly based on glowing, solid results. After all didn't Wells just have a blow out quarter? What is that you say, $5 billion in "earnings" were based on FAS 157-4 reversal and accounting gimmicks?

Financial company stock prices have been on a tear these days, undoubtedly based on glowing, solid results. After all didn't Wells just have a blow out quarter? What is that you say, $5 billion in "earnings" were based on FAS 157-4 reversal and accounting gimmicks?

Such is the punchline of rating agency Egan-Jones, which did not drink the equity market kool aid today and reaffirmed it D rating on the company. With GM shares trading barely changed despite the company's announcement it is effectively bankrupt, it is curious what shareholders expect out of the upcoming in- (most likely) or out-of-court restructuring. Yes, there is always the possilbe hail mary option value that Kirk will come out of left field and offer to buy the company, pledging the MGM Mirage as collateral (again) but aside from that?

Spreads were mixed in the US today with IG tighter, HVOL improving, ExHVOL better, XO stronger, and HY selling off. Indices generally outperformed intrinsics with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL outperformed but widened the skew, ExHVOL outperformed pushing the skew wider, XO underperformed but compressed the skew, and HY's skew widened as it underperformed.

Just another day at the NYSE where people are either all buying, or all selling. NYSE is going from +1,300 (upticks) to -1,000 (downticks) in a matter of seconds.

I can just hear Steve Grasso somewhere saying how swell this is.

Just another day at the NYSE where people are either all buying, or all selling. NYSE is going from +1,300 (upticks) to -1,000 (downticks) in a matter of seconds.

I can just hear Steve Grasso somewhere saying how swell this is.

Just another day at the NYSE where people are either all buying, or all selling. NYSE is going from +1,300 (upticks) to -1,000 (downticks) in a matter of seconds.

I can just hear Steve Grasso somewhere saying how swell this is.

Just another day at the NYSE where people are either all buying, or all selling. NYSE is going from +1,300 (upticks) to -1,000 (downticks) in a matter of seconds.

I can just hear Steve Grasso somewhere saying how swell this is.

10 Year Treasuries trading as if the whole QE thing never happened. Courtesy of visible and invisible hands which have made holders dump their bonds and chase after an insane market.

Totally unconflicted commentary from Paul McCulley of Pimco "The data is indicating we are in the bottoming process. The rate of decline is slowing." Took the words right out of Grasso's mouth.

Time for QE 2.0? Why not - the Treasury and the Fed are not know for getting things right the first time around... or fifth...

10 Year Treasuries trading as if the whole QE thing never happened. Courtesy of visible and invisible hands which have made holders dump their bonds and chase after an insane market.

Totally unconflicted commentary from Paul McCulley of Pimco "The data is indicating we are in the bottoming process. The rate of decline is slowing." Took the words right out of Grasso's mouth.

Time for QE 2.0? Why not - the Treasury and the Fed are not know for getting things right the first time around... or fifth...

10 Year Treasuries trading as if the whole QE thing never happened. Courtesy of visible and invisible hands which have made holders dump their bonds and chase after an insane market.

Totally unconflicted commentary from Paul McCulley of Pimco "The data is indicating we are in the bottoming process. The rate of decline is slowing." Took the words right out of Grasso's mouth.

Time for QE 2.0? Why not - the Treasury and the Fed are not know for getting things right the first time around... or fifth...

10 Year Treasuries trading as if the whole QE thing never happened. Courtesy of visible and invisible hands which have made holders dump their bonds and chase after an insane market.

Totally unconflicted commentary from Paul McCulley of Pimco "The data is indicating we are in the bottoming process. The rate of decline is slowing." Took the words right out of Grasso's mouth.

Time for QE 2.0? Why not - the Treasury and the Fed are not know for getting things right the first time around... or fifth...

As Zero Hedge has repeatedly pointed out in the past, the credit market is usually the best barometer of trends and perceptions, not least due to its liquidity (especially in CDS) and size which is multiples higher than the equity market, and thus much less susceptible to outright nudges here and there. A comprehensive report out of Goldman Sachs presents some interesting observations on the credit - equity relationship, which (whether due to correlation or causation) may put the recent rally in a more coherent perspective than its daily technically-driven fluctuations.

As Zero Hedge has repeatedly pointed out in the past, the credit market is usually the best barometer of trends and perceptions, not least due to its liquidity (especially in CDS) and size which is multiples higher than the equity market, and thus much less susceptible to outright nudges here and there. A comprehensive report out of Goldman Sachs presents some interesting observations on the credit - equity relationship, which (whether due to correlation or causation) may put the recent rally in a more coherent perspective than its daily technically-driven fluctuations.