Archive - Jul 19, 2009

Tyler Durden's picture

CIT: L+1000 Bridge Financing





Sunday night edition of America's favorite game: kick the can down the street, better known as "someone else's problem."

 

Tyler Durden's picture

State Street On Electronic Trading And The Liquidity Hazard





Continuing the series of State Street presentations on relevant market topics, the latest piece "What are the Implications of the Growing Use of Electronic Trading" focuses on the nuanced difference between "real liquidity" and "liquidity hazard", depending on whether one is a price taker or market maker. Yet based on limited available public disclosure, non-premium clients of the NYSE and other PT-espousing exchanges have no visibility of who and under what conditions any given broker/dealer and quant become one or the other. And while merely a few years ago HFT was less than half of traded stock volume, recent data indicates high frequency trading now accounts for over 70% of US volume, and thus it is important to reasses what is the relevant set of data disclosure by dominating broker/dealers. The risk is palpable - as State Street itself notes, there is "equity capital at risk."

 

Raymond Shaw's picture

UK Weekend Focus: 19 July 2009





Here is a set of articles worth reading and pondering about over the weekend. It seems that Swine Flu has shifted into high gear with an increasing number of people conking out and GSK to make heavy dough in the process. The UK government is lining up vultures banks to flog off its Llyods and RBS stake; handsome cheddar has already been distributed to the punters managing these stakes.

 

Tyler Durden's picture

The Truth About Asia





The most recent report out of CLSA is out: easily the best and most comprehensive overview piece of all that is happening in Asia, but provides extensive Western insight as well. Here is the link direct from the Company's website.

 

 

Tyler Durden's picture

Sunday Reading





  • Evans-Pritchard: Fiscal ruin of the Western world beckons (Telegraph)
  • Mauldin: Europe on the brink (Safe Haven)
  • The elusive California housing bottom (Dr Housing Bubble
  • Six reasons to abolish the Fed (Mish
  • It's good to be Goldman (Barron's
  •  

    Tyler Durden's picture

    The Dangers Of High Frequency Trading... As Predicted By Lawrence H. Summers





    When discussing high-frequency trading, Zero Hedge recently asked
    "As Goldman is becoming the primary conduit of trading
    (whether principal or agency) in virtually all markets, the risk of a
    massive liquidity drain becomes exponentially larger, and the risk of
    an exogenous event approaches LTCM and Lehman levels. It is this key risk driver that regulators should be focusing on,
    instead of chasing and attempting to punish the perpetrators of the
    most recent market crash (we are not saying they should not, but they
    should prioritize and now should focus on what is
    most critical to maintaining a functioning market topology). " It seems we were wrong about authoritarian figures never predicting the implicit risk of this subset of program
    trading - ironically, it was well over 20 years ago and none other than
    the future Chairman of the Federal Reserve Larry Summers who had some
    prophetic words of caution. In a paper titled "Commentary on 'Policies to Curb Stock Market Volatility" in which Larry was discussing the cause and effect of Black Monday (about which he is quite wrong that nobody had seen coming), he lays out some oddly forward looking observations about program trading, or positive-feedback trading as high frequency trading was yet to become a staple market diet.

     

    Tyler Durden's picture

    Jones Day's Chrysler Charge To Taxpayers: $12,702,190.19





    Chrysler's little parade in bankruptcy court to make sure a few hundred thousand unionized workers retain their jobs for another year or two is finished. And here is the bill to you, dear taxpayer (or rather the first of many): Jones Day's invoice is in the mail. Everyone take out their wallets and please split the $12,702,190.19 equally. After all, now that we are allbenefiting form having a much leaner, much more competitive Chrysler around, we should all be happy to pay each and every lawyer who made it possible.

     

    Tyler Durden's picture

    Unemployment Rate By State: June Update





    The most recent BLS State unemployment data is out. At this rate of job loss, Michigan will see 100% unemployment in about one year (give or take). Otherwise, state by state unemployment increased by 2.8% on average (unweighted) from May until June.

     
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