• Monetary Metals
    07/28/2014 - 02:38
    Notice the “icicles” dripping all over the place? They occur at different times of the day. What are they? Each one is a brief but dramatic price drop.

recovery

Tyler Durden's picture

Visteon Final Bond Recovery Price: 3 Cents On The Dollar





Market tests are useful as they best indicate just what is the real value of hundreds of billions of distressed securities stripped away from any unwarranted optimism and green shoot propaganda. Today's Visteon CDS Auction was just one such test. And if there was a way to grade the test, it would be an emphatic F: not so much for bankrupt Visteon which is already in the morgue, but for other comparable auto suppliers whose bonds and loans recently have seen overambitious PMs buying their debt as if every single credit instrument would be rolled into Taxpayer Capital LLC's Worthless Assets Fund.

 
Tyler Durden's picture

Visteon Final Bond Recovery Price: 3 Cents On The Dollar





Market tests are useful as they best indicate just what is the real value of hundreds of billions of distressed securities stripped away from any unwarranted optimism and green shoot propaganda. Today's Visteon CDS Auction was just one such test.

 
Tyler Durden's picture

Visteon Final Bond Recovery Price: 3 Cents On The Dollar





Market tests are useful as they best indicate just what is the real value of hundreds of billions of distressed securities stripped away from any unwarranted optimism and green shoot propaganda. Today's Visteon CDS Auction was just one such test.

 
Tyler Durden's picture

Recent Average CDS Auction Recovery Rate: 10%





Today's RH Donnelley CDS auction closed at an abysmal 4.875 final price (on top of the IMM). When will DTCC/JPM change the default recovery on bonds for the CDSW calc from 40 to 10? Why 10% - because, as the chart below demonstrates, that is what the weighted average CDS auction recovery has been for the past 8 months.

 
Tyler Durden's picture

Recent Average CDS Auction Recovery Rate: 10%





Today's RH Donnelley CDS auction closed at an abysmal 4.875 final price (on top of the IMM). When will DTCC/JPM change the default recovery on bonds for the CDSW calc from 40 to 10? Why 10% - because, as the chart below demonstrates, that is what the weighted average CDS auction recovery has been for the past 8 months.

 
Tyler Durden's picture

No Recovery For Mortgages





Just as the futures buying hand starts gobbling up them spoos on the horrible housing and mortgage news, mortgages fail to stage any recovery. But please, keep equities artificially high - money out of treasuries into equities, on the road to 7% mortgages, is exactly what the doctor ordered.

 
Tyler Durden's picture

No Recovery For Mortgages





Just as the futures buying hand starts gobbling up them spoos on the horrible housing and mortgage news, mortgages fail to stage any recovery. But please, keep equities artificially high - money out of treasuries into equities, on the road to 7% mortgages, is exactly what the doctor ordered.

 
Tyler Durden's picture

False recovery continues on the back of housing numbers





On today's release of housing numbers, Bloomberg reports more false positives on the economic recovery path. On the second straight month of pending home sales rising (up 3.2%), many are calling this the bottom, pretty much THE leading indicator that we are close to out of the woods. I mean, come on... housing got us into this mess, it'll get us out, right?

 
Tyler Durden's picture

This Should Be Good For At Least Half A Point In Recovery





Lehman bondholders have been reduced to selling Lehman branded merchandise, including pens, canvas bags, umbrellas, and stress balls on Ebay to generate recoveries according to Bloomberg.

 
Tyler Durden's picture

The Road To Recovery





Goldman analysts today provide a very useful checklist to keep tabs of where we stand on the proverbial road out of hell. As GS says, its US economic forecast calls for stabilization by middle 2009, and after annualized declines of 7% and 3% for Q1 and Q2, the bank expects real GDP to inch up at a 1% rate over the second half of the year.

 
Tyler Durden's picture

The Road To Recovery





Goldman analysts today provide a very useful checklist to keep tabs of where we stand on the proverbial road out of hell. As GS says, its US economic forecast calls for stabilization by middle 2009, and after annualized declines of 7% and 3% for Q1 and Q2, the bank expects real GDP to inch up at a 1% rate over the second half of the year.

 
Tyler Durden's picture

The Road To Recovery





Goldman analysts today provide a very useful checklist to keep tabs of where we stand on the proverbial road out of hell. As GS says, its US economic forecast calls for stabilization by middle 2009, and after annualized declines of 7% and 3% for Q1 and Q2, the bank expects real GDP to inch up at a 1% rate over the second half of the year.

 
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