Archive - Story

As was discussed previously, the impact of recent $75 billion Homeownership Stability Initiative will most definitely have a very limited impact on improving delinquency and foreclosure statistics. Where before we focused on some theoretical musings, not we present a a more concrete example of why the HSI may impact at most one third of at risk homeowners.

As was discussed previously, the impact of recent $75 billion Homeownership Stability Initiative will most definitely have a very limited impact on improving delinquency and foreclosure statistics. Where before we focused on some theoretical musings, not we present a a more concrete example of why the HSI may impact at most one third of at risk homeowners.

A few tightening names, curious among these Ladbrokes which with its toxic Hilton Hotel contingent liability exposure is due for a major push wider. AIG leads the blow out parade, 75 bps wider, followed by a whole slew of banks. Today won't be any different. In sovereigns, US risk is about to surpass Japan.

A few tightening names, curious among these Ladbrokes which with its toxic Hilton Hotel contingent liability exposure is due for a major push wider. AIG leads the blow out parade, 75 bps wider, followed by a whole slew of banks. Today won't be any different. In sovereigns, US risk is about to surpass Japan.

Japanese rumor of the day - most Shinsei executives received their marching orders today with only few receiving option to stay. At least one trading head who was among the latter, decided to exit and get deferred bonus money ahead of likely upcoming merger with Aozora which would likely reprice exit equity much lower. Probably not good news for Aozora main stakeholder Cerberus.

Yet another soap opera is developing. Yellowstone Club, near Big Sky, Montana, which during the good times used to be the ultra-exclusive and ultra-expensive escape of a select few such as Bill Gates, Dan Quayle, Bob Greenhill, Steven Burke and Peter Chernin, is becoming the hotbed for one of the most acrimonious luxury resort legal battles in modern history.

Yet another soap opera is developing. Yellowstone Club, near Big Sky, Montana, which during the good times used to be the ultra-exclusive and ultra-expensive escape of a select few such as Bill Gates, Dan Quayle, Bob Greenhill, Steven Burke and Peter Chernin, is becoming the hotbed for one of the most acrimonious luxury resort legal battles in modern history.

• CPI reading 0.3% in line with expectations, core up 0.2%
• Swiss bank shares tumble on UBS tax probe (Reuters)
• GM unit SAAB files for bankruptcy in Sweden (Bloomberg)
• Switzerland threatened with bankruptcy (Credit Writedowns)
• Financiers' views on Wall Street's future (

• UBS blocks US client details, sets up for confrontation with US government (BBC)
• Sir Stanford owned $100 million aircraft fleet, castle, yacht, etc.
  

We believe in cross collaboration, especially with smart, insightful bloggers. Today we focus on TraderMark who runs Fund My Mutual Fund, and is one of the most followed authors on Seeking Alpha; we have picked a post of his on a topic that is near and dear to our heart.

With Traxis' results of -31% in 2008 and -5.71% in January, one would allege that Mr Biggs is merely an expert in leveraged piggybacking to a bull market.

Aleris, which filed for bankruptcy a week ago and had a $1.575 billion DIP in place, has seen the DIP get hammered in the secondary market to a low of 77 bid earlier today, after allocating yesterday. Unlike an ISDA auction, DIPs, especially purchased in the secondary market, seem a guaranteed way to part with capital in a very rapid timeframe. The incremental selling pressure on the DIP is due to numerous existing prepetition holders who subscribed in order to obtain roll up rights on their nearly worthless holdings (pre-petition loan priced at 6 today), hoping to make them less worthless.

Presumably arrested although sources are unclear... maybe arresting FBI agents were on the political contribution list and looked the other way for 30 seconds.

Smurfit Stone's CDS Auction concluded at 2pm today with a final clearing price of 8.875, a whole 100 bps over the Inside Market Midpoint of 7.875. Whoever got hit - congratulations as the bonds were bid 9.5 post auction, an 7% immediate pick up.

The fallout from Citadel's nebulous future is spreading. Russki Algo trading genius Misha Malyshev, who was classified as Citadel's Head of High-Frequency Trading, and who was responsible for some of the only profits at Citadel last year, generating 40% returns for the two funds under his control has left the firm.