Archive - Mar 2009 - Story

Huge CDS buy rally last week - net notional purchasing of protection skyrocketed from a mere $12 billion last week to $250 billion, with a net contract increase of 14,330 contracts compared to only 4,615 in the prior week. As ZH presumed last week, the consumer services space did in fact see significant net purchasing ($42 billion) and spread widening. Other major derisking sectors were financials ($65 billion) and sovereigns ($34 billion).

Huge CDS buy rally last week - net notional purchasing of protection skyrocketed from a mere $12 billion last week to $250 billion, with a net contract increase of 14,330 contracts compared to only 4,615 in the prior week. As ZH presumed last week, the consumer services space did in fact see significant net purchasing ($42 billion) and spread widening. Other major derisking sectors were financials ($65 billion) and sovereigns ($34 billion).

• Citi CFO Crittenden becomes chairman of winding down division Citi Holdings, Ned Kelly new CFO (Reuters)
• Bonus tax has left Wall Street scrambling for the exits (Reuters)
• IMF says US stability plan is worthless, lacks "essential details" (FT)
• A "sober" look at GECC's sad state of affairs (

• Tearing up monetary policy rulebooks in Eastern Europe (Bloomberg)
• The noose tightens: BofA was involved in Merrill's writedowns (FT)
• Leon Black says the commercial real estate black hole will cost $2 trillion.
  

Jonathan Weil of Bloomberg goes apeshit on the FASB, whom he affectionately calls the Fraudulent Accounting Standards Board, claiming that the FASB whored away its soul earlier this week when it "unveiled what may be the dumbest, most bankrupt

The reason why so many investors have been skeptical about the recent rally in stocks has to do with the role of bank stocks, which have been at the heart of both the drop as well as subsequent 20% rebound. The question is whether this recent dramatic move up in financials is sustainable or is merely a temporary blip, as the market reevaluates the inherent risks. I present a good summary by Goldman, arguing that all signs point to the latter.

Lehman bondholders have been reduced to selling Lehman branded merchandise, including pens, canvas bags, umbrellas, and stress balls on Ebay to generate recoveries according to Bloomberg.

Nothing like the threat of little public lynching to get transparency...

For Immediate Release
Citigroup Inc. (NYSE: C)
March 19, 2009

Citi Clarifies Media Reports about Office Consolidation

New York - In response to numerous misleading media reports regarding the office consolidation at Citi's global headquarters at 399 Park Avenue, Citi issued the following points of clarification:

* The consolidation of our executive headquarters at 399 Park Avenue is part of an ongoing global effort to substantially reduce expenses.

And some deep thoughts from Barton Biggs on why it is different this time. The observation is actually not bad, although it does not justify the YTD performance:

And some deep thoughts from Barton Biggs on why it is different this time. The observation is actually not bad, although it does not justify the YTD performance:

According to TrimTabs, equity funds that invest primarily in U.S. stocks posted an inflow of $12.0 billion, versus a revised outflow of $14.3 billion in the previous week. Equity funds that invest primarily in non-U.S. stocks had an inflow of $459 million, versus a revised outflow of $7.7 billion in the previous week.

Zero Hedge has long been lukewarm on the equity prospects for REITs at current stock prices. Luckily, Simon Property Group just confirmed out pessimism. SPG announced it is raising a total of $1 billion in new stock and debt. The company will try to issue 15 million shares of common stock as well as $500 million of senior notes due 2019. Double whammy of increased dilution and leverage.

At least Chris Dodd should be thankful as this will deflect the public anger tsunami straight at Washington D.C.

At least Chris Dodd should be thankful as this will deflect the public anger tsunami straight at Washington D.C.