Archive - Apr 2009 - Story

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.

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.

One would expect nothing less from David Rosenberg than to enjoy the wholesale brainwashing as demonstrated by Barron's Big Money Poll (part of Zero Hedge weekend reading links). And, sure enough, David does not disappoint.

When all the experts agree, sometime else will happen

Link here. Perusing the bondholder pillaging plan now. Looks like GM is being nationalized (at least U.S. getting majority stake).

Summary:

- U.S. would get 51% pro forma stake with debt conversion
- Bondholders would represent 10% of new pro forma stock
- Existing common stock would represent 1% of new pro forma stock

• Goldman Sachs boosts risk-taking at fastest pace on Wall Street (Bloomberg)
• Can a rally last on a diet of junk?
  

For a recap of what happens when there is too much "endogenous" risk in any given system (same sided bets), see Rosenfeld presentation... and career

And again, this time in terms of averages and VWAPs. Indicative purposes only.

For a recap of what happens when there is too much "endogenous" risk in any given system (same sided bets), see Rosenfeld presentation... and career

And again, this time in terms of averages and VWAPs. Indicative purposes only.

For a recap of what happens when there is too much "endogenous" risk in any given system (same sided bets), see Rosenfeld presentation... and career

And again, this time in terms of averages and VWAPs. Indicative purposes only.

A glimmer of hope? (The Economist)
Time for one of these in the U.S.? (Guardian)

A glimmer of hope? (The Economist)
Time for one of these in the U.S.? (Guardian)

We've never been huge fans of Euro central bank policy and the recent news coming out is not doing much to change that view. The Europeans have consistently been the slowest in slashing rates and even now, are sitting at 1.25% in the face of further precipitious falls across demand, supply, exports, etc.

We've never been huge fans of Euro central bank policy and the recent news coming out is not doing much to change that view. The Europeans have consistently been the slowest in slashing rates and even now, are sitting at 1.25% in the face of further precipitious falls across demand, supply, exports, etc.

As documented previously on Zero Hedge, concern #1 by a large margin for the administration is the issue of commercial real estate, and more specifically the disconnect between price discovery of CRE securities (especially in equities) and their deteriorating cash flow fundamentals.

As documented previously on Zero Hedge, concern #1 by a large margin for the administration is the issue of commercial real estate, and more specifically the disconnect between price discovery of CRE securities (especially in equities) and their deteriorating cash flow fundamentals.

A great way to spend an hour and a half and understand just how black swans can annihilate seemingly riskless portfolios, especially those with a preponderance of Ph.D.'s as portfolio managers who claim to understand "risk". If nothing else fast forward to the 1 hour mark to listen to Eric's discussion of endogenous risk and LTCM's trading of liquidity in a crisis, and how it can all go horribly wrong when you have too many people on the same side of the trade.