Liz Claiborne

Frontrunning: December 11

  • Wall Street Exhales as Volcker Rule Seen Sparing Market-Making (Bloomberg)
  • GM to End Manufacturing Down Under, Citing Costs (WSJ)
  • U.S. budget deal could usher in new era of cooperation (Reuters)
  • Ukraine Police Back Off After Failing to Stop Protest (WSJ)
  • First Walmart, now Costco misses (AP)
  • Dan Fuss Joins Bill Gross Shunning Long-Term Debt Before Taper (BBG)
  • China New Yuan Loans Higher Than Expected (WSJ)
  • China bitcoin arbitrage ends as traders work around capital controls (Reuters)
  • Blackstone’s Hilton Joins Ranks of Biggest Deal Paydays (BBG)

US Government Confiscates Midtown Manhattan Skyscraper, One Time Ivan Boesky HQ, From Iran

A week ago when we presented the missing link in the "all cash" housing recovery, namely laundered, embezzled or simply stolen off-shore sourced cash parked in the US real estate market which takes advantage of the NAR's generous anti-money laundering provision exemption, we asked what we thought would be a rhetorical question: "just how far will Preet Bharara take this, and comparable such future actions?" Turns out the answer is quite a bit farther, and higher. And not only that, but instead of just targeting residential real estate, the US attorney in Manhattan, is now focusing on commercial real estate as well. As CNN reported moments ago, the US government has seized an iconic midtown Manhattan skyscraper, one where none other than Ivan Boesky plotted his insider trading schemes in the 1980s, that prosecutors claim is secretly owned and controlled by the Iranian government. The skyscraper in question is 650 Fifth Avenue, also known as the Piaget building.


Daily Credit Summary: December 10 - Like Clockwork

Spreads were tighter in the US today as the ten-day swing cycle in IG has once again reached channel tights. Overnight outperformance on a weakening dollar was stymied by a weak jobless claims number that stalled the performance in the US after a decent open. Breadth was very positive though in credit as roll thoughts continue to weigh (positively) on IG names with tighteners outpacing wideners by almost 6-to-1.

Daily Highlights: 12.9.09

  • Asian shares were down Wednesday in the wake of weak US closing, Japan GDP nos.
  • Dubai companies' bonds decline as credit swaps display 33% risk of default.
  • Japan's economy grew 1.3% last quarter, less than initial estimate of 4.8%.
  • China plans to require all the nation’s steel mills to have at least 1M tons of capacity
  • Oil rises above $73 after expected US crude supply drop suggests demand recovery.
  • 3M's 2010 profit forecast meets analysts’ estimates, says recovery is occurring “slowly.”

Daily Credit Summary: December 8 - Greece'd Darkening

Spreads ended the day mixed in the US today with very low intraday ranges and only marginal moves as HY just outperformed IG. Breadth was modestly negative as TMT and CONSumer names underperformed. We note that credit has outperformed equity in the last couple of days as the dollar has sprung higher and perhaps this is another of the coal-mine's canaries that risk-aversion (think steam behind the run) is hitting stocks.

Daily Highlights: 12.8.09

  • Asian shares were mostly lower Tuesday with bank stocks weighing on some markets.
  • Bernanke reaffirmed plans to keep interest rates near zero for "an extended period".
  • Bernanke sees 'formidable headwinds' for economy on tight credit, job woes.
  • China’s stocks fell for the first time in three days, led by raw-material producers.
  • Consumers shed debt for the ninth month in October, but at a slower rate.
  • Dubai stocks tumble most in world on Nakheel debt restructuring concerns.

Daily Highlights: 10.9.09

  • Asian stock markets rose Friday on US gains, with resource and energy stocks leading.
  • Bernanke says Fed ready to tighten monetary policy when economy improves.
  • Dollar rises for first time in 5 days after Bernanke says Fed ready to 'tighten' policy.
  • Initial Jobless claims in US decrease 33,000 to 10-month low of 521,000.
  • Japan Machine Orders increased 0.5% in August, rebounding from record low.
  • Treasuries decline, set for weekly drop, after Bernanke signals tightening.

Is Liz Claiborne On Road To Chapter 11?

A fitting headline to cap a day in which retail analysts from various investment banks were yapping ceaselessly, trying to convince CNBC's viewers that consumer discretionary is the next REIT space, and that HFT computers are mere minutes away from trading trillions of shares with one another, thereby pumping retail stocks into the ionosphere, is the news out of the WSJ that Liz Claiborne has hired restructuring and turnaround advisor Alvarez & Marsal, best known for advising the wind-down of Lehman's bankrupt estate.

Daily Highlights: 8.14.09

  • Asian stocks gain on speculation improving earnings will extend a 5-month rally in equities.
  • China may boost spending on oil, mining acquisitions by half this year.
  • Crude Oil rises a third day as economic recovery to spur demand for fuels.
  • Hong Kong's yearlong recession may be over as China rebound bolsters trade.
  • India may spark $39B of share sales with cap on controlling stakes.
  • Japanese demand for services unexpectedly rose in June on stimulus measures.
  • US Industrial output probably rebounded in July as auto plants reopened.

Daily Highlights: 8.13.09

  • Asian Stocks rise as Fed says recession easing; MSCI Asia Pac Index posts its biggest gain this month.
  • Chinese stocks rebound after sharp decline, led by banks and metals.
  • China wants more say over iron prices, plans moratorium on new steel projects.
  • Euro rises against dollar in morning European trade on positive economic news.
  • Euro area contracted only 0.1% in Q2 after unexpected growth in Germany, France.
  • Euro zone industrial production fell in euro zone in June, reversing May's gain.

Weekly Credit Summary: August 7

Spreads were mostly tighter this week with ExHVOL the only index that widened (thanks to HVOL's significant outperformance) as HY outperformed IG (While corporates were mostly tighter, Major Sovereign CDS were notably weaker on the week). Indices typically underperformed single-names (but intrinsics had been leading indices tighter all week) with skews mostly narrower as IG underperformed but narrowed the skew, HVOL underperformed but narrowed the skew, ExHVOL's skew widened as it underperformed, XO underperformed but compressed the skew, and HY's skew widened as it underperformed.