Archive - Apr 28, 2009

Not too surprising that the man who buys and sells banks (at one point for a profit, lately, not so much) believes that the bank bailout package is inadequate. Where is Bill Gross to chime in how the Fed needs to buy $1 metric (as opposed to the bankrupt royal equivalent) quadrillion of Treasuries stat?

Spreads were mixed in the US today with IG worse (though with a narrow range Inside Day as HY outperformed), HVOL wider, ExHVOL better, XO wider, and HY rallying. 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's skew increased as the index outperformed, and HY outperformed but narrowed the skew.

Ok, there is something progressively weirder in the daily S&P cash-futures trade, especially in the last several minutes of trading for days now. Soliciting opinions.

Ok, there is something progressively weirder in the daily S&P cash-futures trade, especially in the last several minutes of trading for days now. Soliciting opinions.

The 2s30s UST chart is back to November steep levels. Somewhere Kudlow is cackling giddily.

The 2s30s UST chart is back to November steep levels. Somewhere Kudlow is cackling giddily.

Worth a flip through especially for some interesting (subjective?) perspectives on CRE

TCW on CRE - Free Legal Forms

This might invalidate CNBC's theory that the swine flu issue will blow away by this time tomorrow.

Proclamation issued can be found here.

Just out from the Associated Press. Not sure how this gets done in practice absent massive state-specific lawsuits. Also, some good insight on why Obama being the biggest shareholder in General Motors will create numerous and material conflicts of interest for the administration.

DETROIT (AP) — General Motors Corp. says it will force 1,000 to 1,200 underperforming dealerships to close their doors as the automaker tries to thin dealer ranks to make the remaining outlets stronger.

10 Years today rallied to the highest level since the QE announcement, at 3.015%. Additionally, the 2s10s curve is now 10 bps steeper than the pre Quantitative Easing announcement. Just in time for the Fed's QE v2.0 announcement tomorrow. What is another trillion in treasury purchases to US taxpayers? Someone has to pad Bill Gross' pocket. We should all be grateful for the privilege.

10 Years today rallied to the highest level since the QE announcement, at 3.015%. Additionally, the 2s10s curve is now 10 bps steeper than the pre Quantitative Easing announcement. Just in time for the Fed's QE v2.0 announcement tomorrow. What is another trillion in treasury purchases to US taxpayers? Someone has to pad Bill Gross' pocket. We should all be grateful for the privilege.

With any predictive quality the equity market might have had long dead and buried, the only somewhat sane place left for investors looking at even a modicum of rationality is the CDS market. And something there is afoot, at least when looking at the Merrill - BofA decompression trade, which over the past few days is getting back to levels last seen when Lewis was discussing splitting investment from commercial banking. The outcome of tomorrow's shareholder meeting is getting more and more interesting: judging by CDS levels, one could ask if someone knows something?

With any predictive quality the equity market might have had long dead and buried, the only somewhat sane place left for investors looking at even a modicum of rationality is the CDS market. And something there is afoot, at least when looking at the Merrill - BofA decompression trade, which over the past few days is getting back to levels last seen when Lewis was discussing splitting investment from commercial banking. The outcome of tomorrow's shareholder meeting is getting more and more interesting: judging by CDS levels, one could ask if someone knows something?

Paul Miller has released a report that none of the programs trading the market currently have obviously read. Regardless, in keeping with hopes that at some point cheerleading and rationality prevail, it is prudent to at least know what will happen as you are purchasing BAC stock today.

Reuters reports about Citigroup's capital levels after receiving the early results of its stress test, but if it needs more capital it does not expect the government to provide it, people familiar with the matter said. The bank may be able to raise any capital it needs by changing the terms of its preferred share exchange, or adding to the exchange, the sources said, speaking anonymously because they were not authorized to speak for attribution.