Archive - Jun 2009

It seems like it was just yesterday when Six Flags' PR department was assuring Zero Hedge and its readers of just how fabulous things were at the theme park better known as the juvi delinquents cigarette break hang out (and the only place in the world where you can buy small cups of Diet Coke for the Bernanke wet dream price of $9.95).

The chart below indicates the Fed's YTD open market treasury purchases. Roughly $32 billion in bonds/bills has been bought since the last update 2 weeks ago. The chart below can be traced back the Federal Reserve of New York's website here.

The chart below indicates the Fed's YTD open market treasury purchases. Roughly $32 billion in bonds/bills has been bought since the last update 2 weeks ago. The chart below can be traced back the Federal Reserve of New York's website here.

[youtube=http://www.youtube.com/watch?v=_pPrZtheEMg&hl=en&fs=1&]

See also: Clusterstock.

Spreads were mixed in the US this week with IG worse, HVOL wider, ExHVOL weaker, XO wider, and HY rallying (HY outperformance of IG far greater than XOver compression to Main).

It was fun while it lasted. I am of course referring to the mirage that was the Administration's promise of "very manageable" tax increases. Bloomberg is reporting that as part of the Healthcare overhaul bill, there will be an addition $600 billion in tax increases.

The NYSE seems to be having a major liquidity event. Taking liquidity (market orders) is now prohibited for the rest of the day and only limit orders (Providing liquidity) are allowed.

Here is the most recent.

02:59pm 12 Jun 09:
Market oddlot and PRLs in Matching Engine One (Update)

Nevermind the negative market breadth. Nevermind that there is absolutely no liquidity in the market. An election result in Iran is sufficient for programs to rape TICK (peak at almost 1,500? Come on - make it believable at least) and for JPM to gun the SPY for a little Friday ETF love: as if an excuse is really needed. (And now it seems both parties are saying they won. brilliant)

Maybe the administration will finally listen when one of their own potential bailout beneficiaries tells them the sad truth about the inevitable CRE implosion. Surprisingly, a very good summary of the CRE debacle straight out of CBRE Partners (with $36 Billion AUM, it is just 3x larger than Cohen And Steers). Speaking of... Where are those CMBS downgrades S&P: getting some phone calls from the administration lately?

Ah, the tech trade: nothing better than buying based on technicals, playing hot potato and ignoring the fundamentals. And when the fundamentals indicate that yet another major chip maker, this time MagnaChip has filed for bankruptcy, why bother. Executives for the former spinoff of Hynix, 2006/7 distressed debt darling, and CVC and Francisco partners portfolio company, were seen entering Bankruptcy court in Delaware not surprisingly without the idiotic grin of all those pundits on CNBC who keep pushing hyper-overvalued tech companies (but the new iPhone is out - what gives?).

Been a while since we heard from the most popular (and profitable) research (and trading) desk on Wall Street. Last night Merrill analyst Craig Schmidt went to town upgrading pretty much anything he could get his hands on. To wit, all from the last 24 hours:

JPM trading nearly 50% of advertised SPY volume; MS trading over 60% of advertised IWM.

Indicative snapshot of SPY trades.

JPM trading nearly 50% of advertised SPY volume; MS trading over 60% of advertised IWM.

Indicative snapshot of SPY trades.

Yet another indication that regulations that pertain to you and me, don't necessarily pertain to some others.

In the prospectus filed on May 19, 2009 for Regions Financial Corporation which solicited an offer to exchange 6.625% TRUPS into 138 million shares of common, dealer managers were everyone's favorite TARP recipients Goldman Sachs and JP Morgan.

Yet another indication that regulations that pertain to you and me, don't necessarily pertain to some others.

In the prospectus filed on May 19, 2009 for Regions Financial Corporation which solicited an offer to exchange 6.625% TRUPS into 138 million shares of common, dealer managers were everyone's favorite TARP recipients Goldman Sachs and JP Morgan.