Archive - May 2009

Tyler Durden's picture

Shortage Of Short Paper





Here comes the thumping of the bond market. Barclays report by Joseph Abate out discussing the shortage of short paper, which could wreak havoc on T-Bills. As many readers know today a 300 bps fee is implemented for fails (incomplete delivery) which means many dealers will simply sit on paper, making shorting that much more difficult, and we could see negative T-Bill rates as soon as the next few days. All we need now is illiquidity in the bond market to follow the joke that equity liquidity has become to put a cherry on top of this utterly broken market.

 

Tyler Durden's picture

Shortage Of Short Paper





Here comes the thumping of the bond market. Barclays report by Joseph Abate out discussing the shortage of short paper, which could wreak havoc on T-Bills. As many readers know today a 300 bps fee is implemented for fails (incomplete delivery) which means many dealers will simply sit on paper, making shorting that much more difficult, and we could see negative T-Bill rates as soon as the next few days. All we need now is illiquidity in the bond market to follow the joke that equity liquidity has become to put a cherry on top of this utterly broken market.

 

Tyler Durden's picture

How To Steamroll Chrysler's Bondholders





A very good summary by Douglas Baird, professor at the University of Chicago law school, who analyzes the implications of the 363 sale and the (ab)use of 1129(a)(7) of the bankruptcy code on the Chrysler bankruptcy and why the first 5 days will likely be critical.

 

Tyler Durden's picture

SPY Hard To Borrow At T-0





Thanks to traders who point out that SPY continues to be on the HTB list from market open for days on end now. Hearing grumblings about IWR as well.

This is getting childish.

 

Tyler Durden's picture

Chrysler Affidavit In Support Of First Day Filings





Everything you need to know about the dirty prehistory in the Chrysler bankruptcy, compliments of Jones Day. A must read.

 

Tyler Durden's picture

Frontrunning: May 1





  • Must read: Here come the little AIGs. Syncora (SCA) told by regulators to stop paying claims; next up - MBIA?
 

Tyler Durden's picture

Overallotment: April 30





  • Stress test results delayed as conclusions debated (Bloomberg)
  • Fed likely to offer 5 year TALF loans soon (Bloomberg)
  • Buffett faces a grilling from investors (FT)
  • Banks believed to be holding 600,000 foreclosure properties off market (
 

Tyler Durden's picture

RIEF/B Underperforms S&P By 18.7% In April





Also the quant fund has underperformed the S&P by 14.3% YTD. Oddly Medallion manages to dodge the land mines.

 
Do NOT follow this link or you will be banned from the site!