Archive - May 28, 2009 - Story

2s7s chart below showing just how much tolerance bond vigilantes have for anything with a duration of over 2 years and 1 day. 3 minutes until the 7 year auction results are announced.

Update: Closes at 3.30, 2 cheap to current, 2.26 bid-to-cover, 7 years now dropping.

Update: and it rips

2s7s chart below showing just how much tolerance bond vigilantes have for anything with a duration of over 2 years and 1 day. 3 minutes until the 7 year auction results are announced.

Update: Closes at 3.30, 2 cheap to current, 2.26 bid-to-cover, 7 years now dropping.

Update: and it rips

Never heard of the company, but any time you have a LCDS auction clearing 3.75 @#&$hairs away from zilch, it can't be good, even more so when you end up with zero net open interest. Yes... you read that right... SECURED recovery of 3.75 for a European auto supplier... Bring on the auto green shoots stat.

Never heard of the company, but any time you have a LCDS auction clearing 3.75 @#&$hairs away from zilch, it can't be good, even more so when you end up with zero net open interest. Yes... you read that right... SECURED recovery of 3.75 for a European auto supplier... Bring on the auto green shoots stat.

Yes, the cheap dollar is great, and both Japan and the ECB are looooving it. In the meantime, maybe Paulson and Einhorn are on to something (see below).

Yes, the cheap dollar is great, and both Japan and the ECB are looooving it. In the meantime, maybe Paulson and Einhorn are on to something (see below).

BNO reports that that the U.S. Attorney's office in Chicago will announce another public corruption case, possibly involving an elected official at 2 p.m. local time today.

Update: Well, it is not someone else people may have been expecting... Instead it is Ike Carrothers, the chairman of the City Council's police and fire committee.

According to Bloomberg. As expected, Good GM will buy all the good stuff (anyone mind pointing out just what that is), and the garbage (Pontiac Aztek and such) will be thrown away.

Market rallies on the news that 20% of bondholders (the ad hocs) agree with the proposed plan to get warrants in a worthless company. Hm, what about the 80% who do not?

After briefly appearing in the critical ward, looks like Citi is back to comatose condition. Having raised $2 billion in 10 year non-guaranteed debt a week ago, the behemoth toxic asset cesspool that Vikram inherited is in the market again... for a TLGP-guaranteed trade. Good to see Citi's observant capital markets strategists know how to gauge the market's receptiveness to their garbage, and also when to hide in the shadow of taxpayer guarantees.

Til Schuermann, VP of Financial Intermediation at the Federal Reserve Bank of New York, is testifying today on issues in Commercial Real Estate, and his prepared remarks essentially drown the prospect of green shoots in the context of CRE.

Just as the futures buying hand starts gobbling up them spoos on the horrible housing and mortgage news, mortgages fail to stage any recovery. But please, keep equities artificially high - money out of treasuries into equities, on the road to 7% mortgages, is exactly what the doctor ordered.

Just as the futures buying hand starts gobbling up them spoos on the horrible housing and mortgage news, mortgages fail to stage any recovery. But please, keep equities artificially high - money out of treasuries into equities, on the road to 7% mortgages, is exactly what the doctor ordered.

From Bloomberg's chart of the day, reflecting the massive lag in muni weakness compared to the compost heap that is the general economy.

Bloomberg had this to say:

From Bloomberg's chart of the day, reflecting the massive lag in muni weakness compared to the compost heap that is the general economy.

Bloomberg had this to say:

So just which is it? Did the streaming ticker not pay its real time bill today?