Archive - Apr 2009

Interesting post on GMInsideNews.com (hat tip PIGPEN)

Some additional views on VWAP, especially as relates to market averages (S.M. or otherwise) which many readers have claimed is the same. Well, it isn't. And the whole point of the technical moves over the recent declining volume period is just that: how viable are these marginal moves. Thoughts welcome (chart provided by creditresearch.com)

GM CHAIRMAN SEES NEEDING MORE GOVERNMENT CASH, DOW JONES SAYS
GM CHAIRMAN SAYS DELPHI MAY LIQUIDATE W/OUT MORE FUNDING

Market loving the incremental millions of unemployed. BO speaking loud words of reassurance and carrying no stick.

A massive squeeze in its entire graphic glory - Citi arbs getting destroyed, with an all time loss of $12 per arbitrage block (7.31 common short/1 preferred long). Question to traders out there: is Goldman stock loan/repo asking for your C shares back? Actually, don't answer... that was rhetorical. But some advice to middle/back office guys: if you get a call from 212-912-xxxx, don't pick...It's not good news.

A "shocking" drop in US retail sales was announced this morning and is starting to inspire doubt that perhaps the recession/depression may not quite be over yet. Looking through the numbers, there aren't very many big surprises with auto and electronics being hurt the most on a percentage basis, and general drops across the board.

Ok, unique snowflakes. Time to tear this apart... Judging by how many readers posted comments on the prior GS post and sent me emails (I wish I could analyze every angle), there should be enough brainpower here to fully digest the "one-time, non recurring, 4 month monster quarter." In the meantime, GS is finalizing the terms of its follow on: $123/share price, to be completed before market open.

One thing that caught my eye off the bat from the Q&A:

• Where is the inflation the Fed is so worried about: PPI at -1.2%, below estimate of 0.0% (Bloomberg)
• And as for the consumer spending spree... that's not so hot either (Bloomberg)
• When China's property prices drop in half, who bails them out?
  

Well, Mike Morgan sure has guts. Here's to hoping he also has good lawyers... Cause the 5th branch of government (the 4th being PIMCO) can now afford to spend another $5 billion of investor money to see this one to the bitter end... and then the taxpayer subsidies kick in.

Here's rooting for the underdog.

GoldmanSachs666 Complaint zerohedge

Looks like at least someone will not take the ongoing criminality of the sociopathic market any longer.

From from the WSJ:

A group of bondholders have ratcheted up the pressure on General Growth Properties Inc. by asking their trustee to sue the debt-laden mall owner for payment of their past-due bonds.

Spreads were tighter in the US today as all the indices improved (with Series 12 at contract tights and outperforming the off-the-runs). 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.

Curious which hedge funds got the margin calls of death today.

Citi Common-Preferred Arbitrage Above. The higher the CIX, the more vaseline portfolio managers will need to purchase from Duane Reade today.

Just hit headlines, not sure what the hell this means: they will equitize the loans?

Reading it so that the gov't will "agree" to get its uber-secured loan equitized, killing any negotiating power for all other unsecured bondholders.

Bondholders will be not be happy.

Time to bring out the equitable subordination lawyers boys.

By Linda Sandler, Rebecca Christie and Jeff Green

The daily volume on the SPY to this point is at 162 million shares, half the daily average of 333 million shares traded. The market continues to move on diminishingly marginal trades.

Chart compliments of www.creditresearch.com

I thought the financial cooperative had managed to sweep its troubles under the rug (at least temporarily) after NRUC announced its results last week with no major surprises... Maybe I was early... And this is despite the company's rushed attempt to complete the credit bid for ICC.