Bored With The Blowout In PrimeX? Looking For The Next "Big One"...

Tyler Durden's picture

Not saying anything, but wink wink nudge nudge. Because you know when dealers need to hedge massive cash exposure in suddenly mispriced commercial real estate (oh, look, it's a Chinese fighter jet, it's the stock price of Morgan Stanley, it's a REIT)  the one place they all go to next is... And there is nothing like some concerted selling in a brand spanking new product in which the entire dealer community is long.



And everyone's favorite wannabe bulge bracket is already touting the bejeesus out of it...


More soon.

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falun bong's picture

silly rabbi, Kix are for Trids...

Magic Mamaliga's picture

Ha... that's an old one... silly rabbi..

macholatte's picture

a synthetic total-return swap index Bitchez!

kaiserhoff's picture

Thank god for advertising.  How else would I know that I desparately needed another shit sandwich.

Piranhanoia's picture

Your'e income is safe with us. Its fixed. Its based on the safest bet there is, the worthless bonds to empty pools of vacant commercial real estate!  Time to get on board.  Take the train to the end of the line for big profits!

except your account manager jumped out of the caboose.

apberusdisvet's picture

Prime center city real estate available; can be used for collateral 10:1; some with over 30% already leased!  Many exisiting tenants are actually paying!

Act now!  This package won't last,

oogs66's picture

no time to put CDS on an exchange, that would be too difficult, but a new complex product, heck yeah!

jeff montanye's picture

how about an old (well three years or so) product?  srs is down 99+% in the last three years (according to fringe blogger comments).  its 200 week average is 525, it sells for 45.  its price just cut the fifty and the 200 day moving average from below on increased volume, as did the fifty the 200.  the weekly just cut the fifty from below, twice.  first red and then black (green).

LeBalance's picture

when you go skating on the thin ice of modern life....

from SubPrimeX, to PrimeX, to TriX....

(someone has to be sitting in a penthouse saying: "Ok if I call it THIS will they fucking get it?")

---as Tyler said >>> they won't >>> bet on Au!

ag3nt0rang3's picture

USLV & UGLD  Bitchzzzzzz

Coldfire's picture

A steaming pile of derivo-regurgitation of post apocalyptic crudscrape is no way to go through life, son.

TRX, the intimidating wannabe dominatrix, would paddle my book hardly, abruptly, and with no mercy for its plaintive wails.

For my book has been bad.

And so I clean her leather boots with my pee.

(Adapted from Hot Chicks With Douchebags)

cowdiddly's picture

weapons of mass confusion;

Your returns may vary substantially from those reported.

"Never invest in anything that eats or needs painting". Grandpa

crabsofsteel's picture

and it has replacable collateral .... just like a managed CDO. 

oogs66's picture

the shorts were concerned there might be some residual value stopping the index from going to zero, but now they can keep topping up and make sure it gets all the way to zero

slewie the pi-rat's picture

and we know they're not making any more...
...suddenly mispriced commercial real estate

what could possibly go wrong...?

but personally i'm not bored with PrimeX yet
it has tranches and everything, i think...

...ultimately guaranteed by the seven dwarves
and, of course, snow white

Atomizer's picture

Don't exhale co2, the house of cards may tumble to the ground.

Australian parliament passes historic carbon tax law

monopoly's picture

This is so absurd. Where are the cops. I cannot believe this shit.

navy62802's picture

Don't kid yourself. There are no cops in this gambling house. The only "cops" out on the beat are there to arrest people who beat the system.

broke433's picture

Isn't gold the next PrimeX because everyone and their mama is long?

Bansters-in-my- feces's picture

5,400 reads and only 17 (seventeen) comments...???


Missiondweller's picture

LOL! This Wall Street's respond to Occupy Wall St.

James T. Kirk's picture

How many ways can you package and sell a financial black hole?

navy62802's picture

There are plenty of ways ... just listen to the commercials on Sirius/XM radio.

StychoKiller's picture

Yo Captn, do ya need another science officer on yer ship?  I'll even wear a red shirt, just get me off this rock! :>D

caerus's picture

yeah..go rangers!!!

Scalaris's picture

Too risky, I only invest in Timberwolves.

slaughterer's picture

I am getting on the phone with Lisa Pendergast right now and leveraging these to the hilt immediately.  

Element's picture

(oh, look, it's a Chinese fighter jet,


It's not actually a significant issue. Numerous NATO and Asian airforces have crashed scores of F-16s hence the nickname "Lawn Dart", because the engines tended to fail, and the early gen avionics were essentially a short-range daytime VFR fighter with a gun and some short range IR missiles. So in bad weather with poor visual refs and high terrane, they tended to crash a LOT ... and their landing gear was flimsy as all fuck ... due to the need to reduce weight to get the climb, pitch and roll performance required.  You'd be horrified if you researched how many Western fighters crash just like that. The Russians also have the same sort of record with crashing their fighters. The Indians in particular have a STAGGERING number of high performance fighters that crashed over the years - it's literally in the hundreds! The Dutch and French have also lost a very large number of advanced western fighters.

It happens to everyone. There are lots of very valid reasons to PAN the ChiComs and their stuff, but crashing fighters is not one.

kaiserhoff's picture

All true, but that's also why there is a pilot on board.  When you lose power, you may be fucked because of an unusual attitude, but basicly, you have a glider, not a lawn dart.  An overloaded, heavy, balky glider with piss poor glide slope, but if the air field is within sight, the sorry sod should be able to dead stick it in.  Training matters.

Lose not thine air speed, lest the ground rise up and smite thee.


slaughterer's picture

No long interest is likely to emerge in these CMBS long-term swaps until market volatility subsides:

We know that a  short basestands at the  ready as loan originators and dealers are eager to find an efficient hedgefor their books. However, long interest may take time to cultivate and likely requires aperiod of sustained spread stability before investors step in. The lack of long positionsponsorship near term will cause TRX contracts to widen, which may exert somewidening pressure on cash spreads near to intermediate term.



overmedicatedundersexed's picture

"Annaly Capital Management, Inc., a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. The company invests primarily in mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other mortgage-backed securities representing interests in or obligations backed by pools of mortgage loans. Annaly Capital also invests in Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and Federal National Mortgage Association debentures. The company has elected to be taxed as a real estate investment trust (REIT). As a REIT, the company would not be subject to federal corporate income tax, provided it distributes at least 90% of its taxable income to its stockholders. It was formerly known as Annaly Mortgage Management, Inc"

pays 15% divi and trading in mid teens..why don't I own this gem?

because I think this is the poster boy for the end of finance. with foreclosures and empty mall space how can this co pay out such a high divi and project this payout going forward?? smoke and mirrors based on jargon filled prospectus?

anyone care to tell me how wrong I am about this ponzi ?? please do.

slaughterer's picture

The managers of Annaly are well-respected and well-tested professional who have been through some tough markets and survived.  The company is recommended by none other than Jim Grant.  Whether Annaly can maintain its dividend during OT2 is a good questions, as OT2, in part, destroys Annaly's business model by destroying the part of the curve Annaly scoops the most profit out of.  

Sophist Economicus's picture

It COULD be a brilliant investment if
1. You believe that high/hyperinflation is in our future


2. Most of the debt has been 'locked in' at these artificially low interest rates


3. The properties can generate enough cash-flow to service the debt

These instruments would be the best dollar shorts! Without all of the forex risks

I haven't looked at anally, but some of the REITs that have solid cash-flow or strong cash positions are 'counter intuitive' hyperinflation hedges. Will be independent of what happens to the value of the underlying properties, because the debt will be melted away! Something to think about

PulauHantu29's picture

Preparation H works better for me then PrimeX.

economists_do_it_with_models's picture

"The  index,  if  effective..."

Just what the world needs -- an investment vehicle that *MIGHT* be effective -- if you're lucky.  lol  Even the guys SELLING that crap don't believe in it.

mkkby's picture

Why can't someone sell me something with actual VALUE.  Like derivatives on derivatives on tulip bulbs.

overmedicatedundersexed's picture

thanks Slaughterer and Sophist, I do not think NLY is immune from what seems a very severe stock market dump..but when the dust clears I will have it on my list to pick up..time the markets is my plan.