Archive - Apr 24, 2009
GM Liquidates Two Employee Benefit Plans
Submitted by Tyler Durden on 04/24/2009 20:27 -0500In an 8-K just released, GM has announced that it has liquidated two key employee benefit plans (the Savings-Stock Purchase Program and the Personal Savings Plan). The plan custodian State Street started selling the plan assets, consisting entirely of GM stock, on March 31 and reinvesting proceeds into fixed-income investments and money market funds.
Latest In The Bank Failure List: 4 Banks, 1 Credit Union
Submitted by Tyler Durden on 04/24/2009 20:06 -0500Bank failures #26, 27, 28 and 29 for the year were American Southern Bank of Kennesaw, Georgia, Michigan Heritage Bank of Farmington Hills, First Bank of Beverly Hills and First Bank of Idaho of Ketchum, Idaho. The cost to the FDIC from the three failures will be $48.7, $50 million, $394 and $113 million, respectively.
Daily Credit Market Summary: April 24 - Squeeze
Submitted by Tyler Durden on 04/24/2009 19:59 -0500Spreads were tighter in the US today as all the indices improved (and curves steepened with shorts getting squeezed at the mid to short-end). Indices typically underperformed single-names with skews mostly narrower as IG underperformed but narrowed the skew, HVOL outperformed but widened the skew, ExHVOL intrinsics beat and narrowed the skew, XO underperformed but compressed the skew, and HY outperformed but narrowed the skew.
Weekly Macro Observations
Submitted by Tyler Durden on 04/24/2009 18:21 -0500David Rosenberg punching the table on the little noticed fact that the Detroit production shutdown will have profound negative ripple effects on the economy. Zero Hedge still believes that fundmantals are more important to report than ongoing wholesale market short squeezes, so we present David Rosenberg's latest weekly observations.
Quicksand
Weekly Macro Observations
Submitted by Tyler Durden on 04/24/2009 18:21 -0500David Rosenberg punching the table on the little noticed fact that the Detroit production shutdown will have profound negative ripple effects on the economy. Zero Hedge still believes that fundmantals are more important to report than ongoing wholesale market short squeezes, so we present David Rosenberg's latest weekly observations.
Quicksand
Fed Releases "Stress" Test Assumptions
Submitted by Tyler Durden on 04/24/2009 17:03 -0500The Fed has released the stress test methodology (link here). Note the amusing "More Adverse" projections.
Also, a relevant statement from the Fed: “Losses associated with the deepening recession and financial market turmoil have substantially reduced the capital of some banks."
Fed Releases "Stress" Test Assumptions
Submitted by Tyler Durden on 04/24/2009 17:03 -0500The Fed has released the stress test methodology (link here). Note the amusing "More Adverse" projections.
Also, a relevant statement from the Fed: “Losses associated with the deepening recession and financial market turmoil have substantially reduced the capital of some banks."
Fed Releases "Stress" Test Assumptions
Submitted by Tyler Durden on 04/24/2009 17:03 -0500The Fed has released the stress test methodology (link here). Note the amusing "More Adverse" projections.
Also, a relevant statement from the Fed: “Losses associated with the deepening recession and financial market turmoil have substantially reduced the capital of some banks."
Additional Thoughts On The GGP Substantive Consolidation Threat
Submitted by Tyler Durden on 04/24/2009 16:50 -0500Following up on the RBS GGP piece from earlier today, here are some even more specific insights, courtesy of Wachovia. Of particular note is the observation that SPE cash flows are subordinated to Bill Ackman's DIP.
Rahm Emanuel Says Will be Gradation of Stress Test Results
Submitted by Tyler Durden on 04/24/2009 14:42 -0500Developing Story: Allegedly the "gradation release" will be "essential" for clarity on the stress tests.
In other news, Obama has 100% confidence in Bernanke. Zero Hedge is starting a list of all the people Obama loves more than life itself: members so far 1) Tim Geithner, 2) Steve Rattner, 3) Ben Bernanke.
Treasury 2s10s Curve Steeper Than Pre QE Announcement
Submitted by Tyler Durden on 04/24/2009 14:25 -0500Things for the Treasury sure aren't looking pretty. With the 10 year about to break 3% outright, the 2s10s chart has just passed pre-Quantitative Easing levels. With Treasury supply really starting to ramp up, this could be a bad sign for agencies and mortgage rates. This happens as the TIPS auction is largely oversubscribed. Seems that the market is happy to jump over the next 2-3 years of deflation and is looking straight at 2013.
Treasury 2s10s Curve Steeper Than Pre QE Announcement
Submitted by Tyler Durden on 04/24/2009 14:25 -0500Things for the Treasury sure aren't looking pretty. With the 10 year about to break 3% outright, the 2s10s chart has just passed pre-Quantitative Easing levels. With Treasury supply really starting to ramp up, this could be a bad sign for agencies and mortgage rates. This happens as the TIPS auction is largely oversubscribed. Seems that the market is happy to jump over the next 2-3 years of deflation and is looking straight at 2013.
Will Late Sunday Be D-Night for Vikram?
Submitted by Tyler Durden on 04/24/2009 14:02 -0500The NY Post is speculating that Vikram's days at the helm of Citi may be at an end.







