Archive - Jun 2, 2009

In response to a flood of queries, the correlation between the VIX and MOVE (ML's Treasury vol index), is presented below: while the R^2 over the past year is sketchy at 0.585, historical correlation climbs to a sturdier 0.7

In response to a flood of queries, the correlation between the VIX and MOVE (ML's Treasury vol index), is presented below: while the R^2 over the past year is sketchy at 0.585, historical correlation climbs to a sturdier 0.7

Last week it was Visteon, yesterday it was Lear, today it's TRW.

GMAC, which has already received a direct taxpayer donation of $13.5 billion, and has recently been accused of poaching depositors with higher rates than permitted by the FDIC, is turning to the very same FDIC with the hopes of now issuing FDIC-guaranteed debt.

Many have recently been surprised by the spiking volatility in Treasuries and have queried how best to keep track of these daily swings. As Zero Hedge points out almost daily, the 2s10s chart is much more exciting than the boring flatline that equities have become. A good and simple way to keep track of Treasury vol, is through the Merrill MOVE index. The MOVE definition: "yield curve weighted index of the normalized implied volatility on 1-month Treasury options.

Many have recently been surprised by the spiking volatility in Treasuries and have queried how best to keep track of these daily swings. As Zero Hedge points out almost daily, the 2s10s chart is much more exciting than the boring flatline that equities have become. A good and simple way to keep track of Treasury vol, is through the Merrill MOVE index. The MOVE definition: "yield curve weighted index of the normalized implied volatility on 1-month Treasury options.

Many have recently been surprised by the spiking volatility in Treasuries and have queried how best to keep track of these daily swings. As Zero Hedge points out almost daily, the 2s10s chart is much more exciting than the boring flatline that equities have become. A good and simple way to keep track of Treasury vol, is through the Merrill MOVE index. The MOVE definition: "yield curve weighted index of the normalized implied volatility on 1-month Treasury options.

In another surprisingly unmoderated interview on CNBC, UC Irvine professor Peter Navarro brings some relevant insight on why the Chinese problem is much more than the simplified question of whether or not they will keep buying Treasuries. Also, the commentary on Chinese students laughing in Geithner's face is always refreshing, and shockingly uncensored for a CNBC audience.

In the latest appellate order, the Indiana Pension Funds early this morning were granted a motion to appeal directly to the U.S. Court of Appeals, bypassing District Court, as had been the desire of Chrysler and Fiat. While undoubtedly a last ditch effort before the June 15 deadline, after which Fiat can walk away if there is no closed deal, the action will hopefully derail Gonzalez' steamrolling of over 300 objections, which early yesterday were overruled as he proceeded to approve the 363 sale motion.

In his morning update piece, following up on his CNBC interview and providing much more clarity on the themes he touched upon, Rosenberg gives his explanation on the four factors currently in play in the market, which include i) technicals, ii) fund flows/market positioning, iii) valuation and iv) fundamentals. It is a tale of two cities, with the first two indicating a disconnect from reality as the market has likely more potential upside, while the underlying valuation/ fundamentals representing a market that has rarely been as rich.

GM is set to announce the sale of Hummer for $100-$200 million at some point today, marking the most anyone paid for one of those since Eliot Spitzer. As Zero Hedge reported, based on GM's optimistic cash burn projections, this will plug the hole...from 10-15 hours of operation. Regardless, the 3,000 jobs saved by the sale of the too big to fail gas guzzler will be very happy.

• Income of Americans surged .5% in April elevated by stimulus, while spending declined 0.1%.
• Most Asian stocks fall on North Korea Concern; PetroChina drops.
• Crude oil retreated from a 7 month high in New York on signs OPEC’s output is climbing.
• Dollar and the yen rose against the euro as stocks snapped three days of gains
• Gold gains to three-month high as weaker dollar boosts demand
• UK stocks fell as Barclays Plc's Abu Dhabi investors sell $6.8 billion of the lender's shares.
• U.S.
  

• A little more market ramp please: Morgan Stanley joins follow on party (Bloomberg)
• Debt defying quirk could haunt banks (WSJ)
• Dollar falls to lowest level in 2009, Europe, Japan really loving it now (Bloomberg)
• Swedish Krona hit by EU-member Latvia fears (

Hey Kids! It's time again for Marla's Romper Room!

Today we are going to play "Statistically Significant at the 95% Confidence Interval!" No sniveling Julie or you'll get the hose again.

Children, you have a very important mission! You know all the soft fuzzy bunnies we have in Marla's petting zoo? Well, of the 2923 bunnies in Marla's petting zoo, we are going to have to cruelly put to death 702 of them on tomorrow's program. Your job is to pick which bunnies you want to save!

Fun! Yay!

Hey Kids! It's time again for Marla's Romper Room!

Today we are going to play "Statistically Significant at the 95% Confidence Interval!" No sniveling Julie or you'll get the hose again.

Children, you have a very important mission! You know all the soft fuzzy bunnies we have in Marla's petting zoo? Well, of the 2923 bunnies in Marla's petting zoo, we are going to have to cruelly put to death 702 of them on tomorrow's program. Your job is to pick which bunnies you want to save!

Fun! Yay!