Archive - Apr 22, 2009

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.

Data out of dataquick indicates that the housing market in California is about to take second major leg down. In line with Zero Hedge expectations upon the expiration of the foreclosure moratorium.

Steve Grasso about to have an orgasm on air: "This is great news, consumers are stronger, market is going higher from here."

In light of next week's scheduled meeting of the Fed, we thought we would look at the potential for further announced quantitative easing. Last month, the Fed rocked most major markets with the announcement of a major purchase of long rates to push down yields. Since then, many have dismissed the purchases as a one-time event that are not likely to repeat.

In light of next week's scheduled meeting of the Fed, we thought we would look at the potential for further announced quantitative easing. Last month, the Fed rocked most major markets with the announcement of a major purchase of long rates to push down yields. Since then, many have dismissed the purchases as a one-time event that are not likely to repeat.

In light of next week's scheduled meeting of the Fed, we thought we would look at the potential for further announced quantitative easing. Last month, the Fed rocked most major markets with the announcement of a major purchase of long rates to push down yields. Since then, many have dismissed the purchases as a one-time event that are not likely to repeat.

Developing Story out of WSJ

According to CNBC, regulators will demand banks have a minimum of 3% tangible equity in worst case.

Some good commentary out of Lehman's Matt Rothman released yesterday. The squeeze is merely the last method available to prevent the trend from normalizing.

As we highlighted in our note of Tuesday, April 14th, we were concerned about an impending reversal in the underperforming Sentiment Theme index and the outperforming Valuation Theme index.

Developing story: Traders confirm several locations indicating SPDRs are no longer automatic borrow and have made their way to the Hard To Borrow list: pre-borrow call is needed versus automatic short prior, as not enough underlying inventory.

Have fun hedging the market when you can not short. Wholesale market squeeze is being orchestrated.

10:23 am update:

Developing story: Traders confirm several locations indicating SPDRs are no longer automatic borrow and have made their way to the Hard To Borrow list: pre-borrow call is needed versus automatic short prior, as not enough underlying inventory.

Have fun hedging the market when you can not short. Wholesale market squeeze is being orchestrated.

10:23 am update:

Developing story: Traders confirm several locations indicating SPDRs are no longer automatic borrow and have made their way to the Hard To Borrow list: pre-borrow call is needed versus automatic short prior, as not enough underlying inventory.

Have fun hedging the market when you can not short. Wholesale market squeeze is being orchestrated.

10:23 am update:

Merrill Lynch would like to thank the academy, God, and Cohen and Steers, in that order.

The following stocks were the top percentage losers before the open on solid volume of at least 50K shares, trading at over $10 the prior day. COF (-8.97%), MS (-8.6%), TXT (-8.01%), VNO (-5.4%), USB (-5.03%).

Source: www.theflyonthewall.com

Some massive tightening in the universe of 30 tracked names with both major loan and bond moves. The average loan spread tightened by 100 bps to 700 bps while bonds tightened by almost 200 bps to 1,381 bps from two weeks ago. Taking a cue from the equity markets, the most horrendous HY names saw the biggest tightening with Neiman Marcus and Sealy Mattress bonds both collapsing by over 800 bps.

Some massive tightening in the universe of 30 tracked names with both major loan and bond moves. The average loan spread tightened by 100 bps to 700 bps while bonds tightened by almost 200 bps to 1,381 bps from two weeks ago. Taking a cue from the equity markets, the most horrendous HY names saw the biggest tightening with Neiman Marcus and Sealy Mattress bonds both collapsing by over 800 bps.