Daily Credit Summary: August 23 - Low Volume, Low Range, Low Growth

Tyler Durden's picture

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mynhair's picture

The GM IPOO isn't worth staying up for?

Maserati, bitchez!

The Methanizer's picture

GM IPO, better to burn your uninsured house down.

AUD's picture

"The clear preference over this period for bonds over equities - or as we describe it an up-in-capital-structure shift - may in some minds imply equity outperformance is due (to catch up with the 'tight' spreads)"

I still think there's a good chance

"The re-opening of the century deal and pricing modestly above Par (around 5.95% yield) suggests some major deflationary tail hedging demand was out there. While the bond's duration was not crazy high, the fact that buyers emerged suggests some fears remain of much more catastrophic times ahead."

So buy 100yr bonds!? How the fuck does anyone know what the story is in 100 years? The human race could be enslaved by the lizard people of Andromeda 7... or something.

jkruffin's picture

The clear way to play this IPO is stay away and run from it as fast as you can. This is going to be the biggest Pump and Dump scam ever on an IPO day.  I have seen some doozies in the past, but this one will take the cake.  Bernanke has all the new crispy bills printed and ready to prop this IPO up.  This is going to be an epic fail IPO.  Anyone who would touch this, needs their momma to slap them in the face.

cocoablini's picture

100 year bonds...
I look forward to our new Lizard masters. They sure beat Geithner, Ben shalom and Obama.
The Fed will eat those 100 years like candy and I suspect we and Japan will still be in a depressionary deflation

cocoablini's picture

100 year bonds...
I look forward to our new Lizard masters. They sure beat Geithner, Ben shalom and Obama.
The Fed will eat those 100 years like candy and I suspect we and Japan will still be in a depressionary deflation

jmoney's picture

Thinking out loud can be confusing.  Can you clarify a few things in this run-on sentence? See my comments below:

One we would expect is selling of Ford to buy into the GM IPO in hopes of flipping soon after and still leaving the manager equally exposed to the Auto sector (meaning before the flip right?) - this would also be interesting as the GM bonds have residual ownership in the new GM (they are nothing but GM equity) and may be a decent hedge (how is this a hedge??) here should the deal be 'better' than many expected. Just thinking out loud on this but we will keep an eye on it.

Herry12's picture

Thanks for such a great post and the review, I am totally impressed! Keep stuff like this coming!...
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