Archive - Jul 27, 2009

Tyler Durden's picture

CMBS Delinquency YoY Change: 585%





Yes, that's 585%. No comment needed

 

Tyler Durden's picture

Daily Credit Summary: July 27 - Dispersion Rising





Spreads were tighter in the US as all the indices improved (with HY and IG back to early SEP08 levels on an adjusted index basis). Indices typically underperformed single-names (as despite the late day surge to new tights in IG, we heard more single-name protection buying hedged via the index) with skews mostly narrower as IG underperformed but narrowed the skew, HVOL outperformed but widened the skew, ExHVOL intrinsics beat and narrowed the skew, XO underperformed but compressed the skew, and HY outperformed but narrowed the skew.

 

Bruce Krasting's picture

Debt Repudiation – On the Table





The NY Times describes a new breed of bad creditors, "Ruthless Defaulters". Ruthless or just fed up and angry? What is the 'tipping point' where default crosses over to repudiation?

 

nickbarbon's picture

Commercial Real State





A phenomenal graph from Sean Keane at Triple T Consulting showing commercial real estate loan proportions of Tier 1 bank capital across the US...

 

nickbarbon's picture

Leading Economic Hope





Floyd Norris at the NYT is excited about the Index of Leading Economic Indicators. Let's peek under the hood to see what's going on.

 

Tyler Durden's picture

Ron Insana On HFT





Hey Ron, didn't realize your new position as a contributing editor on CNBC came with the contributing title of "Portfolio Manager." Didn't Stevie put a one year kibbosh on that? But I digress... And in all honesty I am surprised that you seem to have the correct spin on things (as per letter below from Jim Cramer's failed media experiment TheStreet).

 

Anal_yst's picture

On Wall Street Compensation





Information Arbitrage had a good summary of the Wall Street compensation argument over the weekend, and given the tension surrounding Phibro's Andrew Hall of-late, I think its high time to bring some logic and reason to the debate.

 

Tyler Durden's picture

Raymond James On Implications Of Flash Elimination - NYSE Biggest Winner...





...Although once the debate moves away from Flash to its natural progression into dark pools and ultimately HFT, watch out below: "Any move to restrict high frequency trading could have a significant impact on exchanges’ transaction fees as well as revenue earned from co-location; there is also the chance that efforts to restrict HFT in the equities world could bleed over into other asset classes as well, including futures. We view potential regulatory changes as a net negative for exchanges, but it is far too early to assess the impact of potential regulation on these two issues."

The clock is now ticking on the rigger Echange - Broker/Dealer oligopoly

 

Tyler Durden's picture

1 To 3 Years Of Securities Recalls Aka Forced Squeeze To Go





After numerous posts on this blog discussing speculation of assorted forced buy ins, it seems that this phenomenon is quite factual and quite pervasive among the asset management community. As Zero Hedge has noted previously, forced buy-ins are a critical issue as it leaves shorts at the mercy of their securities lenders and repo desks (most of which are TARP recipients and thus beneficiaries of higher stock prices) which generically have the option of recalling lent out shares at a moment's notice, and thus creating artificial purchasing pressure: i.e. a forced short squeeze. According to Securities Industry News, in a recent survey by Callan Associates, over half of the respondents said they are undergoing a "controlled unwind" with their securities lending desks (aka State Street, BoNY, and Northern Trust).

 

Tyler Durden's picture

NYSE Claims It Does Not Engage In Flash Trading





From an interview earlier with NYSE's Larry Leibowitz, who is surprisingly vocal against Flash trading. Larry - since the NYSE does not engage in Flash trading, can you please indicate whether or not the SLP program provides advance notice to Goldman Sachs ala Direct Edge's ELP program. Regardless, the escalation in the ECN wars is starting and should be a very interesting one to follow, especially now with a toothless and clueless Mary Schapiro stuck in the middle.

 

Tyler Durden's picture

The Goldman VaR Exemption Question Escalates





It seems only yesterday that Zero Hedge had some questions in regard to Goldman's VaR Fed exemption. No response was received from 85 Broad. Today it appears several Congressmen, lead by Alan Grayson, are willing to drive a sharp stick pretty deep into the hornets' nest, by sending a letter directly to Wall Street Don Ben Bernanke, demanding an explanation exactly to the question of Goldman's VaR Exemption.

 

Tyler Durden's picture

Do You See What Happens Larry To Market Neutral Funds When SLP Dominates Liquidity Provision?





Not much... In fact a mere 3.11% return YTD, below the 9.4% HFN aggregate average and the 4.7% return YTD. Of course, this excludes Goldman's $100MM trading days YTD. If one added those, the YTD MN return might easily be pushing 50%.

 

Tyler Durden's picture

Schumer Letter To Mary Shapiro





"I write out of concern that the integrity of our capital markets is being compromised by the ability of some insiders to view order information before it is available to the entire market, and use electronic trading strategies to profit from that information at the expense of other investors"

 

Tyler Durden's picture

Paul Tudor Jones Exposed





The mythical "TRADER - The Documentary" is finally available on You Tube. Relevant "full frontal" insights on the making of a hedge fund legend, and a paleolithic market dominated by monochrome PCs (what, no Bloomberg?), running to the municipal library for that 10-K, and no Flash orders frontrunning every trade. 

 
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