Archive - Nov 3, 2009 - Story

Zero Hedge's resident ink-master, John Redmann, again.

After hitting stupid tights of 236 bps in the prior week, the secured-unsecured spread started widening marginally again, going back to above 250 bps. And while the bulk of moves by the index constituents were noise based, except for TRW's presumably erroneous reading of a 450 bps tightening in loans to 157 bps, the question remains of whether there is any principal upside left or whether new investors will be stuck collecting meager spreads over a virtually non-existent LIBOR in the loan universe, while bonds are dependant on the vagaries of the stock market, and thus the Fed.

• Wall Street cries "Feed Me" or the world will end (Bloomberg)
• RBS, Lloyds get $51 billion in second bailout (Bloomberg)
• Even as Europe raises 2010 growth forecast (AP)
• Mort Zuckerman: Forget inflation, deflation is a bigger danger (USNews)
• States are pondering fraud suits against banks (NYT)
• Retailers "dodge bullet" with CIT November bankruptcy filing (Bloomberg)

• China said to plan review of developer loans on concern at surging prices.
• EU raises 2010 GDP forecast as deficits, jobless soar.
• Euro higher to $1.4800 in European morning trade as ECB expected to hold rate.
• IMF sold 200 metric tons of gold to India's central bank for about $6.7B.
• Korean Won leads Asia currency gains as US data spurs demand for higher yields.
• Most Asian stocks fell as concern over the withdrawal of stimulus measures.

Coming soon...