Archive - May 2009

For all with access to Bloomberg, run LTRA... For those who don't have bberg handy, here is the screen capture of Bloomberg's perfidious sense of humor.

Judging by the market, Bloomberg is actively developing its next critical "cointoss" function: [PPT] GO.

Somebody is really getting reamed by the SPY - IWM hedging dislocation today.

Somebody is really getting reamed by the SPY - IWM hedging dislocation today.

Somebody is really getting reamed by the SPY - IWM hedging dislocation today.

Zero Hedge pointed out how abysmally hilarious CNBC's repetitive conclusion that GM's bankruptcy is a done deal, when you only have 20-35% of the bondholders on deck. True, Rattner will likely make some urgent phone calls, and attempt a gut (and wallet) wrenching appeal to the holdouts, referring to such flights of fancy as the holdout's mother, family, the IRS, the SEC, etc.

Equities loving, loving that mortgages jumped by 50 bps over past two days. And the pounding is not ending.

Equities loving, loving that mortgages jumped by 50 bps over past two days. And the pounding is not ending.

Equities loving, loving that mortgages jumped by 50 bps over past two days. And the pounding is not ending.

As if on Zero Hedge's cue BankUnited CEO John Kanas appeared on CNBC today to talk about how wonderfully things are going for the new-lease-on-life firm. The regulators were great! They opened for "business as usual" the next day! No. The rumors that the supply of free toasters has diminished are totally false.

You will be pleased to know that Zero Hedge has managed to dig up quite a bit of interesting history on BankUnited. For instance, we have discovered that BankUnited's power animal is the Black Carpenter Ant (indigenous to Florida and prone to destroy homes).

2s7s chart below showing just how much tolerance bond vigilantes have for anything with a duration of over 2 years and 1 day. 3 minutes until the 7 year auction results are announced.

Update: Closes at 3.30, 2 cheap to current, 2.26 bid-to-cover, 7 years now dropping.

Update: and it rips

2s7s chart below showing just how much tolerance bond vigilantes have for anything with a duration of over 2 years and 1 day. 3 minutes until the 7 year auction results are announced.

Update: Closes at 3.30, 2 cheap to current, 2.26 bid-to-cover, 7 years now dropping.

Update: and it rips

Never heard of the company, but any time you have a LCDS auction clearing 3.75 @#&$hairs away from zilch, it can't be good, even more so when you end up with zero net open interest. Yes... you read that right... SECURED recovery of 3.75 for a European auto supplier... Bring on the auto green shoots stat.

Never heard of the company, but any time you have a LCDS auction clearing 3.75 @#&$hairs away from zilch, it can't be good, even more so when you end up with zero net open interest. Yes... you read that right... SECURED recovery of 3.75 for a European auto supplier... Bring on the auto green shoots stat.

Yes, the cheap dollar is great, and both Japan and the ECB are looooving it. In the meantime, maybe Paulson and Einhorn are on to something (see below).

Yes, the cheap dollar is great, and both Japan and the ECB are looooving it. In the meantime, maybe Paulson and Einhorn are on to something (see below).