Archive - Apr 2009

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.

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.

The text and table below is from a Q1 performance report by the Friedberg Mercantile Group. The most notable item is the shift in long/short exposure as well as the March 31 leverage (2.34x) for the asset manager's market neutral fund.

The text and table below is from a Q1 performance report by the Friedberg Mercantile Group. The most notable item is the shift in long/short exposure as well as the March 31 leverage (2.34x) for the asset manager's market neutral fund.

The text and table below is from a Q1 performance report by the Friedberg Mercantile Group. The most notable item is the shift in long/short exposure as well as the March 31 leverage (2.34x) for the asset manager's market neutral fund.

The text and table below is from a Q1 performance report by the Friedberg Mercantile Group. The most notable item is the shift in long/short exposure as well as the March 31 leverage (2.34x) for the asset manager's market neutral fund.

Not like this is even remotely surprising, but Zero Hegde will report on the reverse inquiry by whoever the underwriter is on this one (Goldman? Merrill? 50/50) with the main 5 holders.... who happen to be: Vanguard, Barclays Global, Fidelity, State Street and.... Cohen and Steers.

Indicatively, analyst ratings:

Sakwa (ML) - Neutral
Haberman (GS) - Neutral/Cautious

UPDATE: And the winner is Merrill Lynch!!!! (and JP Morgan).

Let's go Steve - the people demand an upgrade