Archive - May 26, 2009
GM Secured Lenders To Not Be Impaired
Submitted by Tyler Durden on 05/26/2009 23:49 -0500As Zero Hedge previously noted, and the WSJ now reports, GM secured lenders will get full recoveries on their loans, which is not to say full cash repayment but rather a notional roll into "Good GM" at par value. This is not surprising, seeing how the secured loans at GM are not the fulcrum security (unlike at Chrysler), however the major haircuts at the unsecured, bond level will prove to be a much more relevant issue for the expediency of the bankruptcy case.
GM Secured Lenders To Not Be Impaired
Submitted by Tyler Durden on 05/26/2009 23:49 -0500As Zero Hedge previously noted, and the WSJ now reports, GM secured lenders will get full recoveries on their loans, which is not to say full cash repayment but rather a notional roll into "Good GM" at par value. This is not surprising, seeing how the secured loans at GM are not the fulcrum security (unlike at Chrysler), however the major haircuts at the unsecured, bond level will prove to be a much more relevant issue for the expediency of the bankruptcy case.
GM Secured Lenders To Not Be Impaired
Submitted by Tyler Durden on 05/26/2009 23:49 -0500As Zero Hedge previously noted, and the WSJ now reports, GM secured lenders will get full recoveries on their loans, which is not to say full cash repayment but rather a notional roll into "Good GM" at par value. This is not surprising, seeing how the secured loans at GM are not the fulcrum security (unlike at Chrysler), however the major haircuts at the unsecured, bond level will prove to be a much more relevant issue for the expediency of the bankruptcy case.
"You've Got Computers Doing All This Buying"
Submitted by Tyler Durden on 05/26/2009 22:09 -0500Rick Bensignor of Execution LLC provides a good glimpse of today's market action. As he says "The market is up 2.75% percent and sell-side trading desks are completely dead. You've got computers doing all this buying." And people wonder why Zero Hedge is so infatuated with Program Trading (usually SLP, but in this case the market neutrals, who had a knock out day today).
T Minus 5 Days For Advanta Credit Card Holders
Submitted by Tyler Durden on 05/26/2009 20:58 -0500This one got lost in the Venus Fly Trap Shoots file at CNBC. From a letter sent out to Advanta clients today. Good thing the company had the foresight to give its long-suffering cardholders a whopping 5 day notice - for their sake they better be on good terms with Amex, Visa, MC.
Dear Customer,
Please Send Your Best Free Investment Idea To...
Submitted by Tyler Durden on 05/26/2009 20:27 -0500When your own research analysts (who are on their 9th and final life after not catching that one particular short squeeze on time) have generated a P&L loss of over 10%, and barely demonstrate an interest in raiding the fridge of all its Redbull Cola contents, let alone spreading the S&P 500, the next best thing is to fish around for some nice and juicy free research, while throwing in a little promise for a possible job call back.
Indiana's Richard Mourdock Makes His Point
Submitted by Tyler Durden on 05/26/2009 20:11 -0500A must see video for all who still don't understand just how major the implications of the Chrysler bankruptcy are for creditors and case law.
TICK Update
Submitted by Tyler Durden on 05/26/2009 19:46 -0500Yet another day in which selling was initially frowned upon, then prosecuted with the full faith (or lack thereof) of the purchasing powers (no > -600 TICKs until 2pm). The only time selling programs tried to poke their head out was toward EOD, which attempt was promptly punished after 6 million SPY shares were gobbled up into the close. For some more observations on what TICK is click here.
TICK Update
Submitted by Tyler Durden on 05/26/2009 19:46 -0500Yet another day in which selling was initially frowned upon, then prosecuted with the full faith (or lack thereof) of the purchasing powers (no > -600 TICKs until 2pm). The only time selling programs tried to poke their head out was toward EOD, which attempt was promptly punished after 6 million SPY shares were gobbled up into the close. For some more observations on what TICK is click here.
TICK Update
Submitted by Tyler Durden on 05/26/2009 19:46 -0500Yet another day in which selling was initially frowned upon, then prosecuted with the full faith (or lack thereof) of the purchasing powers (no > -600 TICKs until 2pm). The only time selling programs tried to poke their head out was toward EOD, which attempt was promptly punished after 6 million SPY shares were gobbled up into the close. For some more observations on what TICK is click here.
Daily Credit Market Summary: May 26 - Low Vol, Lower Volume
Submitted by Tyler Durden on 05/26/2009 19:20 -0500Spreads were tighter in the US today as all the indices improved (but were well off their tights by the close). Indices typically underperformed single-names with skews mostly narrower as IG underperformed but narrowed the skew, HVOL underperformed but narrowed the skew, ExHVOL intrinsics beat and narrowed the skew, XO underperformed but compressed the skew, and HY's skew widened as it underperformed.
Sovereign CDS As A Proxy For Relative Risk
Submitted by Tyler Durden on 05/26/2009 19:04 -0500Interesting observation, correlating the ratio of US to Japan CDS (especially with Japan CDS' tightening 7 bps while USA CDS was 2 bps wider) versus the JPY/USD (inverted axis). Is the sovereign risk trade trying to find other conduits for expressing relative risk in this environment where no sovereign risk seems to exist anymore as all countries are expected to print, print, print all their problems away.
Sovereign CDS As A Proxy For Relative Risk
Submitted by Tyler Durden on 05/26/2009 19:04 -0500Interesting observation, correlating the ratio of US to Japan CDS (especially with Japan CDS' tightening 7 bps while USA CDS was 2 bps wider) versus the JPY/USD (inverted axis). Is the sovereign risk trade trying to find other conduits for expressing relative risk in this environment where no sovereign risk seems to exist anymore as all countries are expected to print, print, print all their problems away.
Sovereign CDS As A Proxy For Relative Risk
Submitted by Tyler Durden on 05/26/2009 19:04 -0500Interesting observation, correlating the ratio of US to Japan CDS (especially with Japan CDS' tightening 7 bps while USA CDS was 2 bps wider) versus the JPY/USD (inverted axis). Is the sovereign risk trade trying to find other conduits for expressing relative risk in this environment where no sovereign risk seems to exist anymore as all countries are expected to print, print, print all their problems away.
S&P To Downgrade Most Of 2005-2008 CMBS Classes, Derails TALF For CMBS
Submitted by Tyler Durden on 05/26/2009 18:28 -0500The lives of the CMSA and Chris Hoeffel are about to get a whole lot more complicated. In a report issued today by S&P, titled "U.S. CMBS Rating Methodology And Assumptions For Conduit/Fusion Pools" Standard & Poors is issuing a Request For Comments on 'its proposed changes to its methodology and assumptions for rating U.S. commercial mortgage-backed securities." Aside from the RFC, S&P goes into detail what the changes to its rating methodology will be, and the impact from these on CMBS.





