Archive - Jun 2009 - Story

Another refreshingly objective piece from the San Fran Fed, this time dealing with the question of whether to expect a recovery in employment; the Fed comes out with what sounds like a resounding no.

Another refreshingly objective piece from the San Fran Fed, this time dealing with the question of whether to expect a recovery in employment; the Fed comes out with what sounds like a resounding no.

Another refreshingly objective piece from the San Fran Fed, this time dealing with the question of whether to expect a recovery in employment; the Fed comes out with what sounds like a resounding no.

Finally a market test valuation of Commercial Real Estate, which is not just hype and Merrill Lynch speculations. The Buffalo News reports that REIT Developers Diversified Realty is selling back 11 upstate New York shopping malls to the entity it originally purchased them from, Benderson Development Co., at a 30% discount to their 2004 purchase price.

The chart below demonstrates the 1 year forward level on the 1 Year treasury. Someone really just went all in on Bernanke's bluff. 2Y/1Y flatteners anyone? Wait, what's that? Every prop desk had a steepener on and was highly levered into it? Basis trade blow up deja vu anyone? Wait for opportunistic hedge funds to be ramping into the flattener and killing who knows how many props on the wrong side of the trade.

The chart below demonstrates the 1 year forward level on the 1 Year treasury. Someone really just went all in on Bernanke's bluff. 2Y/1Y flatteners anyone? Wait, what's that? Every prop desk had a steepener on and was highly levered into it? Basis trade blow up deja vu anyone? Wait for opportunistic hedge funds to be ramping into the flattener and killing who knows how many props on the wrong side of the trade.

The chart below demonstrates the 1 year forward level on the 1 Year treasury. Someone really just went all in on Bernanke's bluff. 2Y/1Y flatteners anyone? Wait, what's that? Every prop desk had a steepener on and was highly levered into it? Basis trade blow up deja vu anyone? Wait for opportunistic hedge funds to be ramping into the flattener and killing who knows how many props on the wrong side of the trade.

Update: mortgage spread to 10 year just spiked to 111 bps, up +5

The bond vigilantes about to start the real pounding of the negative convexity trade. Mortgages can't catch a break. In the 5 seconds since you clicked on this, not one short sale or refi was executed.

Update: mortgage spread to 10 year just spiked to 111 bps, up +5

The bond vigilantes about to start the real pounding of the negative convexity trade. Mortgages can't catch a break. In the 5 seconds since you clicked on this, not one short sale or refi was executed.

Update: mortgage spread to 10 year just spiked to 111 bps, up +5

The bond vigilantes about to start the real pounding of the negative convexity trade. Mortgages can't catch a break. In the 5 seconds since you clicked on this, not one short sale or refi was executed.

SCOTUS blog reporting that according to a response filed by the Solicitor General Elena Kagan on behalf of the United States of America, no court, not even the Supreme Court, has an authority to rule on the applicability of the TARP funds, previously designated exclusively for financial company bail outs, for the Chrysler case.

GDP constituent Gross Private Domestic Investment has plummeted (apologies for the delay in noting) according to the St. Louis Fed, to pre-2000 levels.

GDP constituent Gross Private Domestic Investment has plummeted (apologies for the delay in noting) according to the St. Louis Fed, to pre-2000 levels.

GDP constituent Gross Private Domestic Investment has plummeted (apologies for the delay in noting) according to the St. Louis Fed, to pre-2000 levels.

The PPIP is all but dead. But don't tell that to perma-CRE-bull Barry Sternlicht. The owner of such debacles as iStar (last time we checked the all time worst name in the IG11 index) and RevPar plummeting hotel chain Starwood hotels, is hoping to raise brand spanking new capital via an IPO for, of all things, a new REIT - Starwood Properties Trust, and use taxpayer money to buy other bankrupt hotels.