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First $2.17 Billion POMO Closes: Fed Frontrunning Success Rate: 93%

Tyler Durden's picture




 

The first POMO of the day has closed and Brian Sack has just monetized $2.170 billion of bonds maturing between 2/15/2021 and 11/15/2027, which represents a high 6.4x Submitted to Accepted Ratio as PDs had $13.9 billion in bonds they wanted converted to Netflix shares, and only got satisfied on 16% of the Submitted. But more importantly, as per our Fed Frontrunning Cheat sheet, virtually all of the bonds that were monetized were predicted to be bought by Sack, and in terms of notional, the frontrunning success ratio hit 93%. As a reminder here is where we demonstrated the specific CUSIPs that were most likely to be acquired. Sure enough of the $2.17 billion in notional, $2.02 billion was monetized precisely as expected.

 

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Mon, 11/29/2010 - 12:13 | 761047 Arius
Arius's picture

Congrats Tyler - you the man!

Mon, 11/29/2010 - 12:14 | 761051 John McCloy
John McCloy's picture

"$13.9 billion in bonds they wanted converted to Netflix shares"

  How both sick and true this statement truly is. Our genius handlers master plan involves subsidizing the purchase of stocks which have 40 years earnings baked in and inducing short squeeze to steal money from any who dare oppose the ponzi.

Mon, 11/29/2010 - 12:43 | 761194 Bay of Pigs
Bay of Pigs's picture

Astonishing the level of corruption and deception involved in all of this. And speaking of short squeezes, I'd sure like to see a REAL one with a silver bashing of JPM one of these days. We can dream can't we?

Mon, 11/29/2010 - 12:14 | 761054 LongSoupLine
LongSoupLine's picture

yay, now on to the 1:15 $6-8B reaming. 

Mon, 11/29/2010 - 12:39 | 761169 ydderf1950
ydderf1950's picture

longsoup where did you get the info

Mon, 11/29/2010 - 12:21 | 761085 Cognitive Dissonance
Cognitive Dissonance's picture

....the frontrunning success ratio hit 93%.

With a slugging percentage like that, I nominate Tyler for MVP of the year.

Mon, 11/29/2010 - 12:27 | 761094 plocequ1
plocequ1's picture

Life, Love, Sharing, Caring, Hard work... It doesn't matter anymore. The health of the stock market and money has taken over everything that was once considered revered values. Its sad. Dear lord, Where art thou? Save us from worshiping the golden Calf and set us right.

Mon, 11/29/2010 - 12:24 | 761099 ydderf1950
ydderf1950's picture

what time is the next pomo today

Mon, 11/29/2010 - 12:26 | 761113 Internet Tough Guy
Internet Tough Guy's picture

Every hour on the hour, and a double with lunch.

Mon, 11/29/2010 - 12:24 | 761101 SOSFUERHOLZER
SOSFUERHOLZER's picture

When governments reach the point where they are borrowing to pay the interest on their borrowing they are coming dangerously close to running a sovereign Ponzi scheme. Ponzi schemes have a way of ending unhappily. To get out of the Ponzi trap, governments will have to increase tax revenues, or cut spending, or monetize the debt--or most likely do some combination of all three

Mon, 11/29/2010 - 12:38 | 761165 SheepDog-One
SheepDog-One's picture

No, when you have to borrow money just to pay the interest on your debt, youre fucked.

Mon, 11/29/2010 - 12:46 | 761204 Raynja
Raynja's picture

Actually there is only one way out besides war, claim everyones money was fully invested when the market crashes

Mon, 11/29/2010 - 12:26 | 761114 RobotTrader
RobotTrader's picture

Bears can safely buy SH right now.

And your stop is only about 50 cents away.

Mon, 11/29/2010 - 14:04 | 761501 Thanatos
Thanatos's picture

Hey Thanks for trying "fair and balanced".

I like you more all the time.

I don't do stock but I like that you feed all the different market animals even though you have a preference for grass eaters.

You seem like a stand up person.

Junk away butthurt posters.

Mon, 11/29/2010 - 12:35 | 761156 sabra1
sabra1's picture

Max Keiser:

More than 100,000 protest against Irish bailout

Mon, 11/29/2010 - 12:40 | 761174 SheepDog-One
SheepDog-One's picture

72% of Ireland strongly opposes the bailout, demands default, and the IRA says theyre setting up bomb making shops again. Interesting. 

Mon, 11/29/2010 - 13:00 | 761256 Problem Is
Problem Is's picture

IRA will roll out their new "Adopted A Bankster" program... Followed by "Adopt a Friend of a Bankster."

Douche-Bag Dodd Qualifies:

  1. Dodd is Irish...
  2. Dodd built a career on "Most Favored Bankster Legislation"...
  3. Dodd is a "Friend" of Bankster Tangelo Mozilo...
Mon, 11/29/2010 - 13:49 | 761434 tamboo
tamboo's picture

However, in a surprise accounting move, European and IMF experts decided that Ireland first must run down its own cash stockpile and deploy its previously off-limits pension reserves in the bailout. Until now Irish and EU law had made it illegal for Ireland to use its pension fund to cover current expenditures. This move means Ireland will contribute euro17.5 billion to its own salvation.
http://news.yahoo.com/s/ap/20101128/ap_on_bi_ge/eu_europe_financial_crisis

cant happen here.

Mon, 11/29/2010 - 12:39 | 761170 Caviar Emptor
Caviar Emptor's picture

Most of POMO went to scooping the Euro off the bottom :)

Mon, 11/29/2010 - 12:48 | 761210 asteroids
asteroids's picture

And in 6 months time when a European country or two defaults and interest rates rise sending bonds and stocks into the toilet...

Mon, 11/29/2010 - 12:50 | 761219 Caviar Emptor
Caviar Emptor's picture

....More POMO from QEx.x!

.....99 bottles of beer on the wall, 99 bottled of beer.....

Mon, 11/29/2010 - 12:54 | 761236 Problem Is
Problem Is's picture

"Most of POMO went to scooping the Euro off the bottom :)"

That makes sense. If POMO poured into equities then Bennie only managed a couple of S&P point humps off of the bottom.

Bennie, you're such a hump...

Mon, 11/29/2010 - 13:10 | 761287 Kali
Kali's picture

I was just thinking that, not much pump for the POMO.  Will be interesting to see what the afternoon one does.

Mon, 11/29/2010 - 13:17 | 761307 Cdad
Cdad's picture

Nonsense.  Those proceeds went into oil...which so far has saved the S&P.  Of course, oil is also the nail in the coffin of the S&P...but this is Wall Street...so nothing means anything.

The Euro has hardly been "scooped."  It will continue to fail now for days and weeks.  Pretty hard to get the bag back over that ugly, all things considered.

Mon, 11/29/2010 - 13:21 | 761321 system failure
system failure's picture

Pomo is intended to slow the bleeding or try to reverese the bleeding pure and simple. So now the forces at work are borrowing money, printing money, and quantitative easing money, to make our money less valuable. Either approach they attempt, money is paper and only has value that people are willing to place on it. Gold is the barometer. We watch the balancing act each day. Once is falls off, watch it all fall......except GOLD of course.... 

Mon, 11/29/2010 - 13:27 | 761339 steveo
steveo's picture

Bailouts aside, I have discovered some truths that not even the Hun could take a shot at:

OK here proves 2 points....
1) Inflation is already here.
2) Real workers --the maids a Milking get paid far less than rather "non productive" work of Ladies Dancing (with the stars perhaps).

and Finally....I wouldn't pay a red cent to the Lloyd's a leaping in a tutu, doing god's work no less.

Get the whole story here--
http://oahutrading.blogspot.com/2010/11/inflation-as-proven-by-pnc-finan...

Mon, 11/29/2010 - 13:28 | 761344 ydderf1950
ydderf1950's picture

where do you find the hour and min of the pomo. 

Mon, 11/29/2010 - 13:40 | 761400 TradingJoe
TradingJoe's picture

POMO=DOOM_O

Mon, 11/29/2010 - 14:00 | 761483 Thanatos
Thanatos's picture

93% hit rate is incredible. Wow. Congrats on the stats.

If I understood this better I might not be as impressed with it, but 93% is still outstanding.

I start to think generally that predicting monkey-crooks going for the free bananas is pretty sure bet.

Picking which bananas they will go for requires some intimate knowledge of the monkey mind.

We need more people like TD in high up places in organizations like the FBI White Collar Division.

Imagine that.

Mon, 11/29/2010 - 14:05 | 761502 Buttcathead
Buttcathead's picture

I'm buying 50 lbs bags of potatoes and two big ole  tubs of butter.  that is it.  AMZN can kiss my black ass !

Mon, 11/29/2010 - 14:54 | 761726 tom
tom's picture

Did y'all notice that foreign central banks sold off more than $2b of the Treasuries they hold in Fed custody during the week through Nov 24?

This after averaging more than $20b/week of purchases between mid-August and mid-November.

The Chinese central bank is two steps and $270 billion ahead of you.

Mon, 11/29/2010 - 15:41 | 761924 chancee
chancee's picture

Okay where do I get in on this bond buying fiesta?  Never bought bonds before.  I use Tradestation and TOS.

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