Archive - Jun 2009

The easiest way to refute CNBC, it seems, these days, is by presenting the facts. Contrary to repeated statements from the likes of Pisani that the market is down on small to no volume today, maybe the GE-subsidiary talking heads are thinking they are still stuck in Friday. Whereas the Friday major move up (especially in the last minute of trading - TM and All Rights Reserved, JPMorganChase ETF department) was, indeed, on abnormally low volume, today's selloff in the SPY is tracking exactly the average volume for the ETF.

Privately held group Extended Stay Hotels, which was acquired in June 2007 by NJ-based Lightstone Group LLC for an ungodly amount of money of which $7.4 billion was funded through debt (and the bulk of it was apparently securitized), has thrown in the towel and under the wise tutelage of Lazard and Harvey Miller (who is poised to become the best paid lawyer in the history of the world) - a dynamic duo putting bondholders in their place ever since Judge Peck decided to sell Lehman's brokerage group to Barclays for $0.69,

Privately held group Extended Stay Hotels, which was acquired in June 2007 by NJ-based Lightstone Group LLC for an ungodly amount of money of which $7.4 billion was funded through debt (and the bulk of it was apparently securitized), has thrown in the towel and under the wise tutelage of Lazard and Harvey Miller (who is poised to become the best paid lawyer in the history of the world) - a dynamic duo putting bondholders in their place ever since Judge Peck decided to sell Lehman's brokerage group to Barclays for $0.69,

Privately held group Extended Stay Hotels, which was acquired in June 2007 by NJ-based Lightstone Group LLC for an ungodly amount of money of which $7.4 billion was funded through debt (and the bulk of it was apparently securitized), has thrown in the towel and under the wise tutelage of Lazard and Harvey Miller (who is poised to become the best paid lawyer in the history of the world) - a dynamic duo putting bondholders in their place ever since Judge Peck decided to sell Lehman's brokerage group to Barclays for $0.69,

The charts on the last two pages of this interesting comparison are particularly relevant, with regard to both the bond and the stock market. Courtesy of Black Swan Capital. Are the Fed's machinations setting the market up for another big crash, this one having nothing to do with bank failures and the like?

Ever wanted to buy a diversified portfolio of hedge funds containing a little Eddie Lampert here, a lot of Steve Tananbaum there, some serious Phil Falcone exposure, a dash of Izzy Englander, a pinch of Howard Marks (for those oh so colorful philosophical insights - btw, Howard - we need a missive... you have been strangely silent these past few weeks), a REITful of Ackman, and topped off with a serious double helping of Feldstein, who no matter how "well" he performs (be it 2008, or the great basis convergence in 2009) investors can never seem to dump fast enough.

Bear capitulation is here, at least in credit: every single name is tighter week over week in both loans and bonds. If there is ever a more contrarian signal, please let us know what it is. For the first time since the fall, the universe of 30 high yield names trades inside of 1,000 bps.

Bear capitulation is here, at least in credit: every single name is tighter week over week in both loans and bonds. If there is ever a more contrarian signal, please let us know what it is. For the first time since the fall, the universe of 30 high yield names trades inside of 1,000 bps.

Bear capitulation is here, at least in credit: every single name is tighter week over week in both loans and bonds. If there is ever a more contrarian signal, please let us know what it is. For the first time since the fall, the universe of 30 high yield names trades inside of 1,000 bps.

A number you won't hear much about on CNBC: Capital One's official annualized U.S. credit card net charge-off rate hit 9.41% for May, however as footnote (1) advises, the real charge-off rate was actually 9.91%, a record for the company.

• Manufacturing, Housing may signal economy close to hitting bottom.
• IMF Chief says worst of crisis may be yet to come.
• Obama's regulatory plan to remake Fed's power.
• AIG says it exceeded obligations to Air France passengers.
• Air India will pay 31,000 employees two weeks late as the carrier runs short of cash.
• Airbus CEO: Airbus aircraft deliveries could fall by 25% this year.
• Amazon.com to pay $51M to Toys R Us to settle a long-standing legal dispute.
• Anheuser to sell Central, Eastern Europe units; proceeds (~$2B) to be used to red
  

• IMF says worst is not over (Reuters)
• Moody's says no trouble in CMBS land, isolating S&P [time to boycott Moody's 1-ply Cottonelle] (Reuters, hat tip Richard)
• Tens of thousands of Mousavi supporters gather in Tehran, defying rally ban (Sky News)
• Not inf
  

Submitted by Gary Jeffery

The latest casualty in the synthetic CDO/subprime implosion is the State of Wisconsin's Kenosha Unified School District.

• Must read: Algorithmic programs that will be eliminated (SMB)
• Must read: The Bush doctrine, economic warfare and your investment portfolio (FSU, hat tip Wickern)