Archive - May 2009

(And no, not from smoking up shoots or otherwise).

(And no, not from smoking up shoots or otherwise).

From the SEC's press release:

The Commission voted to propose two approaches to restrictions on short selling. One would apply on a market wide and permanent basis, while the other would apply only to a particular security during severe market declines in that security. They include:

Market-Wide, Permanent Approach

• Proposed Modified Uptick Rule: A market-wide short sale price test based on the national best bid (a proposed modified uptick rule).

Michael Mauer, head of Citi's leveraged syndicate has left the TARP-laden firm to join hedge fund Icahn Associates. Mauer, who was hired in 2001, had previously worked at JP Morgan where he ran the syndicated loan business before the JPM-Chase merger. Mauer's departure comes as Icahn's hedge fund is focusing more on distressed debt opportunities.

Developing story: WSJ reports that the SEC has decided to file civil fraud charges against Hollywood Tans icon and real estate bubble extraordinaire Angelo Mozilo. Charges could include allegations of insider trading. Interesting if his Bank Of America corner office will receive the same take down treatment as that of Merrill's Thain in the coming days.

If one follows the price of GM stock, one may be confused by just what the perspectives for GM are, as the stock trades exclusively on short squeezes and irrational daytrading than any recourse to fundamentals. I present the last week's trading price of on the run GM bonds (in this case the 9.4%'s due 2021), which after opening at about 8 cents on the dollar a week ago, have hit an all time low. For old-school PM's, this implies a 196% yield to maturity (good luck collecting on it).

If one follows the price of GM stock, one may be confused by just what the perspectives for GM are, as the stock trades exclusively on short squeezes and irrational daytrading than any recourse to fundamentals. I present the last week's trading price of on the run GM bonds (in this case the 9.4%'s due 2021), which after opening at about 8 cents on the dollar a week ago, have hit an all time low. For old-school PM's, this implies a 196% yield to maturity (good luck collecting on it).

If one follows the price of GM stock, one may be confused by just what the perspectives for GM are, as the stock trades exclusively on short squeezes and irrational daytrading than any recourse to fundamentals. I present the last week's trading price of on the run GM bonds (in this case the 9.4%'s due 2021), which after opening at about 8 cents on the dollar a week ago, have hit an all time low. For old-school PM's, this implies a 196% yield to maturity (good luck collecting on it).

The GGP final auction clearing price was 44.25: fifth (L)CDS auction in a row that the inside market was surpassed by the final price.

The GGP final auction clearing price was 44.25: fifth (L)CDS auction in a row that the inside market was surpassed by the final price.

The GGP final auction clearing price was 44.25: fifth (L)CDS auction in a row that the inside market was surpassed by the final price.

1% more and... you guessed it... circuit breakers chart is whipped out.

hat tip drunk irish sailor

As Zero Hedge initially reported nearly two months ago, the main reason why the banks' fixed income trading desks generated phenomenal profitability in January and February had nothing to do with actual trading of fixed income and everything to do with AIG's hamheaded (and loss-generating) unwind of its CDS book, which by implication generated one-time, massive profits for counterparties to the trade (read: the banks, which are now doing all they can to issue shares in the open market day in and da

In a stunner of a development, Las Vegas casino operator Fontainebleau has amended its ongoing lawsuit against a set of banks, and has alleged that Deutsche Bank is now "seeking to destroy the Fontainebleau in order to minimize competition" with the Cosmopolitan Resort and Casino, which was acquired by Deutsche Bank in a foreclosure auction in September 2008 for $1 billion, after the casino had defaulted on a $760 million loan.

Our friends at dealbreaker have got some fun snippets from today's Citadel... apologies... RenTec all is good call. Explains the rerouting of all Pall Mall deliveries over the last week to East Setauket.