American International Group

Apologies for the delay

Spreads were tighter in the US as all the major indices improved (with HY and IG making new contract tights once again). Indices typically underperformed single-names with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL underperformed but narrowed the skew, ExHVOL outperformed pushing the skew wider, XO underperformed but compressed the skew, and HY's skew widened as it underperformed.

Spreads were tighter in the US as index spreads were tighter across the board as IG12 and HY12 made new contract tights (even as IG11 underperformed). Indices typically underperformed single-names with skews mostly narrower as IG underperformed but narrowed the skew (with IG skew now at its tightest), HVOL underperformed but narrowed the skew, ExHVOL outperformed pushing the skew wider, XO underperformed but compressed the skew, and HY outperformed (breaking below 1000bps) but n

Spreads were tighter in the US this week as all the indices improved. Indices typically underperformed single-names with skews mostly narrower (as curves steepened and high beta outperformed low beta) as IG underperformed but narrowed the skew, HVOL underperformed but narrowed the skew, ExHVOL intrinsics beat and narrowed the skew, XO underperformed but compressed the skew, and HY outperformed but narrowed the skew.

Spreads were tighter in the US as all the indices improved (as IG saw its tightest close in Series 12). Indices generally outperformed intrinsics (as it seemed index flows were getting ahead of themselves into the close) with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL outperformed but widened the skew, ExHVOL outperformed pushing the skew wider, XO's skew increased as the index outperformed, and HY outperformed but narrowed the skew.

The bond market has spoken, and it demands QE2 (the equity market is insane - it has no idea what it wants). The way treasuries and mortgages are trading, the situation threatens to very quickly spiral out of Bernanke's control (and then how will Wells and BofA pretend like they have some recurring cash generating power? On the non-recurring front, AIG has already been tapped dry.) The table below indicates that based on 2009 supply (not to mention outstanding notionals) the Fed will have to reach into its toolkit for some other (very drastic) measures.

The bond market has spoken, and it demands QE2 (the equity market is insane - it has no idea what it wants). The way treasuries and mortgages are trading, the situation threatens to very quickly spiral out of Bernanke's control (and then how will Wells and BofA pretend like they have some recurring cash generating power? On the non-recurring front, AIG has already been tapped dry.) The table below indicates that based on 2009 supply (not to mention outstanding notionals) the Fed will have to reach into its toolkit for some other (very drastic) measures.

Spreads were mixed in the US with IG worse, HVOL wider, ExHVOL weaker, XO stronger, and HY rallying (although all indices were well off their intraday tights and in fact closed at intraday wides).

• Recovery in the second half of this year will be 'moderate,' according to a report from the National Association for Business Economics
• S&P Case-Shiller national index posted a 19% drop in Q1.
• The world’s shipping lines may double the number of idled container carriers to 20% of the global fleet.
• U.K.
  

Spreads were tighter in the US today as all the indices improved (but were well off their tights by the close). Indices typically underperformed single-names with skews mostly narrower as IG underperformed but narrowed the skew, HVOL underperformed but narrowed the skew, ExHVOL intrinsics beat and narrowed the skew, XO underperformed but compressed the skew, and HY's skew widened as it underperformed.

• Asian shares fell due to North Korea Tension.
• Fed's Kohn says Economy showing signs of stabilizing.
• Russia will sign first commercial contract to supply US utility companies with uranium fuel.
• ABN Amro's Q1 loss at €886M, largely due to hefty losses on the business acquired from RBS.
• BofA will hire staff from global rivals Citi and Goldman to expand equity sales in Japan.
• CF Industries extends exchange offer for Terra Industries to June 26, 2009.
• CSL Ltd.'s $3.1B bid to take over Talecris Biotherapeutics Inc.
  

Spreads were broadly wider in the US as all the indices deteriorated (despite modest tightening all day from gap wider opening levels). Indices generally outperformed intrinsics with skews mostly narrower as IG underperformed but narrowed the skew, HVOL underperformed but narrowed the skew, ExHVOL outperformed pushing the skew wider, XO's skew increased as the index outperformed, and HY outperformed but narrowed the skew.

And so it begins. Rep. Alan Grayson has distributed the letter below to all Democrats in the House and will use it to generate Democratic co-sponsorship for the HR1207 Bill, aka The Federal Reserve Transparency Act, allowing the GAO to audit the Federal Reserve, and also require a Fed report to Congress by the end of 2010.

Zero Hedge has been the subject of much (welcome) ridicule both retail and institutional, for continuing the barrage of Indication Of Interest screens (also: IOIA tag) and information for the benefit of our readers, which I have been showing consistently over the past month, ever since I had a feeling there is something peculiar in the advertised trade flow pipes.

Zero Hedge is launching a new daily bullet list of critical news items and highlights, which we hope will make the lives of traders and analysts easier.