Archive - Jul 2009

- Yield 2.689% vs. Exp. 2.635%
- Bid/Cover 1.92 vs. Avg. 2.37 (Prev. 2.58)
- Indirect bids 36.7% vs. Avg. 45.94% (Prev. 62.87%)
- Allotted at high 31.16% (BBG)

2006? Ancient history dude.

Once again, the VIX diverges from its underlying: as stocks continue their ramp up on JPY weakness, the VIX is holding its highs of the day (inverted scale). Someone remind us what is it again that the VIX was supposed to indicate?

"The Federal Reserve is taking on some interest-rate risk in terms of its balance sheet. The excess reserves have an overnight maturity. These liabilities are being used to purchase longer-term assets. In principle, if short-term interest rates were to move up very sharply, the cost of funding could eventually exceed the return on the Fed’s assets. The bigger our balance sheet, the greater the amount of interest-rate risk we are assuming."

Cramer calls for a 35% pop in BAC. What's he selling?

The credit tightening squeeze is about to get silly. Indicative loans averaged a year to date tight of 461 bps while bonds were trading at 905 bps.

The HFRX Equity Market Neutral Index has hit a new low for the year. In other news, Goldman likely set to report record number of $100+ million trading days for the quarter.

"The information could allow an intruder to map the NYSE’s network architecture and determine what vulnerabilities exist in the system."

Paul Wilmott: "Thus the problem with the sudden popularity of high-frequency trading is that it may increasingly destabilize the market. Hedge funds won’t necessarily care whether the increased volatility causes stocks to rise or fall, as long as they can get in and out quickly with a profit. But the rest of the economy will care."

• Home Prices in US cities post monthly rise; consumer confidence declines.
• Japan stocks edge up amid corporate earnings, investors await US GDP data.
• Shanghai's index fell by 5% on disappointing corporate profits, lower commodity prices.
• US dollar mostly higher, gold falls in European morning trading.
• Akzo Nobel 2nd quarter net profit down 13 percent to $220M, shares rise on margins.

• June Durable Goods down -2.5% on expectations of -0.5%
• Let's break up the Federal Reserve (WSJ)
• Americans rate Fed worst among 9 key agencies (SignOnSD, h/t Bob)
• CRE companies drooling at taxpayer generosity, plan to raise a whopping $3 billion via TALF in September, only $3.997 trillion to go (Bloomberg)
• China banks to slow lending with low targets (Reuters, h/t Gilgamesh)

While some would debate they’ve bailed-out the auto industry enough, the United States government gets into the often gimmicky, very corny and highly questionable art of selling cars. With $1 billion on the table, it’s soon to be a new model year- and Uncle Sam wants… your shitty old car!

The cover rate on today's auction stunk. What rate on this Note would attract the leveraged players? Not 1.08%.

GE Commercial Finance, Stamford Connecticut:

On behalf of the Zero Hedge staff, I want to take a minute to apologize for our filtering your 439 packets today at our firewall.

Now that the SEC has finally taken action to complicate the lives of the vermin known as short sellers, it can turn to the next dire threat to capitalism: gay marriage.