Nomura

AIG Is Casino Hot Potato Darling With 806% Monthly Turnover Ratio

Nomura has released a report highlighting the stocks with the greatest monthly turnover ratio (the ratio of trading value to market cap). And while overall turnover ratio has increased materially in the US, while not so much in other markets, once again making the case that US stock markets have become an exclusive hot potato gambling center, the monthly turnover of some stocks is staggering with AIG hitting an unprecedented 806% monthly turnover ratio.

Daily Highlights: 10.6.09

  • Apartment vacancies in the U.S. rose to 7.8% - a 23-year high.
  • Asian stocks rise on US Services Industries data, higher commodities prices.
  • Australia raised its cash rate target by 25 bps - first Group 20 to unwind stimulus.
  • Dollar weakens as newspaper says Gulf States may drop greenback for oil trades.
  • European, asian stocks advance; BHP Billiton, Dexia, Adidas shares climb
  • Gartner sees narrower '09 chip revenue fall but cuts '10 forecast.
  • Gold inches up towards $1020 on weak dollar
Leo Kolivakis's picture

Blame it on Rio?

Back in August, CPP Investment Board (CPPIB) announced that it has entered into a joint venture with Cyrela Commercial Properties S.A. Empreendimentos e Participações, GIC Real Estate, the real estate investment arm of the Government of Singapore Investment Corporation, to invest up to US$250 million for the development, acquisition and management of institutional-quality commercial properties in Brazil. That appears to have been a very wise decision.

Daily Highlights: 9.25.09

  • Asian stocks decline on Nomura’s share sale, US housing data.
  • China’s stocks fell, with Shanghai Composite set for its biggest weekly loss in 6 weeks.
  • Dollar, Yen rise on speculation G-20 will act to curb riskier investments.
  • Fed regulators say banks, other institutions face $53B in losses on loans.
  • Freddie Mac announces $1B reopening of 2.125% three-year Reference Notes security.
  • G-20 poised to crack down on bankers' pay, increase policy coordination.
Leo Kolivakis's picture

In the environment we're heading into, I prefer liquid asset classes over illiquid ones and I certainly would pick and choose my private equity and real estate funds more carefully instead of writing big checks to every large buyout fund. I'd make sure that my private equity managers are not glorified financial engineers who came from an investment banking background, but guys and gals with solid hands on experience restructuring companies from the bottom-up.

Leo Kolivakis's picture

The news in commercial real estate keeps getting grimmer by the day. This crisis will have severe implications for pension funds that are carrying these properties on their books and banks that are exposed to commercial real estate loans. In other words, the commercial real estate crisis isn't over - not by a long shot.

Frontrunning: September 11

  • Must read: Break up the banks to fix the system (FT)
  • The five non-sell outs. One wonders if to honor or pity them (Bloomberg)
  • Wall Street's mania for short-term results hurts economy (WaPo)
  • Nomura says headhunter requested "absurd" fee for Lehman bankers (Bloomberg)
  • Mack steps down as MS chief after seeking to curb risk (Bloomberg)
  • Another thousandth cut for the dollar: just please die already and make Bernanke a happy man (FT)

Daily Highlights: 7.2.09

  • Private-sector jobs in the U.S. fell 473,000 in June, according to ADP.
  • n Credit Card Companies raising interest rates and fees 7 months before the new
  • law comes into effect.
  • AIG sold the foreign-exchange prime brokerage platform of its Financial Products unit to BNP Paribas SA.
  • AIG stock delisting notice is a mistake says NYSE.
  • Frontrunning: April 10

    • Fed tells banks not to divulge results of "stress test" ahead of earnings (Bloomberg)[question: which exactly SEC regulation is being trampled by this directive?]
    • Surprise, surprise: Goldman to seek multi-billion stock offering (WSJ) [how many more banks will offer equity ahead of earnings, and ahead of stress test results?]
    • Game of credit cost smoke and mirrors at wells fargo (