Archive - May 7, 2009 - Story

AMG Data Services just announced that US junk bond funds saw an $822 million inflow this past week, a doubling of the $435 million inflow from a week earlier. Looks like the powers that be have created a literal junk vortex and institutions are jettisoning treasuries (look at clearing 30 Yr Yield for an indication of appetite) and gobbling up the bottom of the risk pile just as hedge funds are dumping.

Spreads were mixed in the US with IG wider (after a 10bps gap tighter opening), HVOL improving, ExHVOL weaker, XO wider, and HY rallying (HY-IG decompression came on later in the day). Indices typically underperformed single-names (as talk of major prop desk short-covering were rife) with skews widening in general as IG underperformed but narrowed the skew, HVOL outperformed but widened the skew, ExHVOL's skew widened as it underperformed, XO underperformed but compressed the skew, and HY's skew widened as it underperformed.

The highly unconflicted NY Fed Chairman, who was buying boatloads of Goldman shares as the bank was getting taxpayer bailouts, has just resigned.

The product of the great spin is out! Everything flying after hours. State Street and BONY now pulling the borrow in State Street and BONY, kinda poetic. And, of course, all leaks were right on the money. Over under on the leakers actually getting prosecuted?

We are starting to think that beating markets in this environment is starting to devolve into a reading comprehension exercise. In the latest edition, the green shoots crowd are jumping on the release of productivity numbers by the BLS today - nonfarm productivity is up 0.8%, above consensus numbers at 0.6% after going down 0.4% the previous quarter. However, it's a bad picture when the main driver is due to hours worked dropping 9% and output only dropping 8.2% (poof, productivity gains!).

In the giddy smoke from all the green shoots, people kinda forgot that the largest U.S. state is on the verge of bankruptcy. Zero Hedge is happy to remind them.

So much for the subliminal plan to get consumer to spend, spend, spend... Instead it seems the recent trend of save, save, save is picking up steam. The latest G.19 filing shows a massive drop in both revolving and non-revolving consumer credit, which has fallen to a one year low at $2.551 trillion, an $11 billion reduction sequentially in credit, split about even between revolving and non-revolving.

So much for the subliminal plan to get consumer to spend, spend, spend... Instead it seems the recent trend of save, save, save is picking up steam. The latest G.19 filing shows a massive drop in both revolving and non-revolving consumer credit, which has fallen to a one year low at $2.551 trillion, an $11 billion reduction sequentially in credit, split about even between revolving and non-revolving.

So much for the subliminal plan to get consumer to spend, spend, spend... Instead it seems the recent trend of save, save, save is picking up steam. The latest G.19 filing shows a massive drop in both revolving and non-revolving consumer credit, which has fallen to a one year low at $2.551 trillion, an $11 billion reduction sequentially in credit, split about even between revolving and non-revolving.

There is nothing quite like the acting Secretary of the Treasury promoting it on national TV. In his most recent Charlie Rose interview, TG openly tells the banks not to be concerned with things getting worse. Well, Mr. Geithner, if the banks by that definition always have the governmental backstop, then who are we kidding that the entire financial system has not be nationalized.

Grantham rides the moral hazard wave to new peaks. Complete with some amusing probability scenarios

It is never a wholesome day at Zero Hedge absent some brilliant prose from David Rosenberg. So let's make it a wholesome day.

Market likely to peak the end of the week

Everyone's favorite REIT analyst Craig Schmidt raising his Price Objective from $48 to $52 on the second dilution orchestrated by his parent in just as many months.

I am Cohen And Steers' total lack of surprise.

Everyone's favorite REIT analyst Craig Schmidt raising his Price Objective from $48 to $52 on the second dilution orchestrated by his parent in just as many months.

I am Cohen And Steers' total lack of surprise.

Everyone's favorite REIT analyst Craig Schmidt raising his Price Objective from $48 to $52 on the second dilution orchestrated by his parent in just as many months.

I am Cohen And Steers' total lack of surprise.