Archive - Apr 2009 - Story

Well there's a shocker. The United States Treasury just announced that is will need to borrow $361 billion for the April-June Quarter, higher by $196 billion that announced previously in February, and is miles more than the same period last year when the Treasury had to borrow "only" $13 billion. This is traditionally the cash heavy tax-receipt quarter in which borrowing needs should be the lowest.

In a development out of left field today, which caught the CDS market largely unaware, ISDA came out with a release in which it is seeking broker feedback on whether there has been a succession event at MBIA Insurance corporation on February 17, and that MBIA Illinois and MBIA Corp are successors.

By way of explanation:

In a development out of left field today, which caught the CDS market largely unaware, ISDA came out with a release in which it is seeking broker feedback on whether there has been a succession event at MBIA Insurance corporation on February 17, and that MBIA Illinois and MBIA Corp are successors.

By way of explanation:

In a development out of left field today, which caught the CDS market largely unaware, ISDA came out with a release in which it is seeking broker feedback on whether there has been a succession event at MBIA Insurance corporation on February 17, and that MBIA Illinois and MBIA Corp are successors.

By way of explanation:

Every time selling intensifies, the market rips higher in gaps and leaps... Don't think it about it for more than 5 seconds or your head will explode.

Every time selling intensifies, the market rips higher in gaps and leaps... Don't think it about it for more than 5 seconds or your head will explode.

Seems like New York air traffic controllers are unaware of the ploy by the powers that be to not generate even one iota of negative sentiment. Recreating September 11 tends to have the opposite effect, and has gotten none other than Mayor Bloomberg "furious." Of course the market response of a 10 point overshoot on the S&P after the news was "clarified" may have been considered as well.

An attentive reader provides real time pics of the "photo op" as well as the immediate response by high-rise office inhabitants.

In a release last week, the International Swaps and Derivatives Association has determined that collateral in circulation has essentially doubled from its 2008 estimate of $2.1 Trillion to $4 Trillion. Not surprisingly most of this collateral is in cash.

Cash continues to grow in importance among most firms, and now stands at over 84 percent of collateral received and 83 percent of collateral delivered.

Another bizzaro day on Wall Street. Up volume breadth on the NYSE almost half of down volume.

Another bizzaro day on Wall Street. Up volume breadth on the NYSE almost half of down volume.

Another bizzaro day on Wall Street. Up volume breadth on the NYSE almost half of down volume.

Bloomberg out on the issue:

General Motors Corp. bondholders find the automaker’s offer to exchange their $27 billion in debt for equity unlikely to succeed, according to a person familiar with the committee representing creditors.

Egan Jones calling it like it is:

CNN picks up on a theme that Zero Hedge started several weeks back in analyzing the guarantees that the U.S. government has established to make sure the economy does not collapse. The net result according to Turner's organization: $10.5 Trillion out of the entire $14 Trillion U.S. economy (this number is likely smaller now) is backstopped by the United States itself.

Tightening continues in the universe of 30 tracked names although at a much more moderated pace compared to the prior week. The average loan spread tightened by 24 bps to 674 bps while bonds tightened by 64 bps to 1,317 bps from the prior week.