Archive - Apr 22, 2009

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.

• Morgan Stanley obviously is not an shady accountant, reports bigger than expected loss (Bloomberg)
• Freddie Mac acting CFO found dead by police (Bloomberg)
• Key points from U.K. budget statement (WSJ)
• Soaring U.S.
  

• Must read: Barofsky bombshell - all TALF 2.0 participants likely to see executive pay restrictions (WaPo) [If true, kiss the TALF goodbye and any hope for a CRE recovery]
• Kansas Fed's Hoenig: Let insolvent firms fail (CNBC, hat tip Ben Dover) [this guy actually votes on Fed poli
  

Today's macro recap courtesy of John Bougearel at Structural Logic.

The CDS market continues going from dead to deader. It seems the lack of liquidity is somehow spilling over into the CDS realm. Total notional barely moved up from $14.6 billion to $23.6 billion, however the number of contracts was half the prior weeks, at 9,909 total. Notable notional rerisking occurred in the basic materials ($10.7 billion) and financials ($14.5 billion) sectors, while sovereigns continued to see derisking to the tune of $12.4 billion.

The CDS market continues going from dead to deader. It seems the lack of liquidity is somehow spilling over into the CDS realm. Total notional barely moved up from $14.6 billion to $23.6 billion, however the number of contracts was half the prior weeks, at 9,909 total. Notable notional rerisking occurred in the basic materials ($10.7 billion) and financials ($14.5 billion) sectors, while sovereigns continued to see derisking to the tune of $12.4 billion.