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Scramble From European Insurers Accelerates: ASSGEN, Allianz CDS Soar
Less than two weeks ago, when reporting on the news that Fitch has finally woken up to the reality that European insurers, already massively pregnant with European bonds, are the next shoe to drop, something we have been saying since 2010, we said, "For once, Fitch took the words right out of our mouth, and in the process reminded us that the time of the stupendously named ASSGEN CDS (357 bps, +41 today) is here (for our previous coverage on Generali, read here, here and here)." We also added: "And just because we like to live dangerously, we believe the time has come to knock on the door of the grand daddy of all: Pimco parent, German uber-insurer Allianz, where the crisis will eventually hit like a ton of anvils if and when things really get out of control." Here is the first trade update, 12 days later: Generali is 100 bps wider, Allianz is 40 bps. So as traders stock up on even more default protection to the companies which are certainly not too big to fail (ALZ used its trump card with the EFSF as CDO squared idea... and failed), we urge them whatever they do, to not tell Bill Gross to look at the soaring default risk of his parent company.
Generali or, as it is better known, ASSGEN:
And Allianz:
source: BBG
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Hand 'em their ASS!
Meanwhile...
'Fed's Lockhart says QE3 would only be justified if the US is in a recession'I hope he means US, not EU.
FED will bail out all these fools...
IE... Look who's running the FED, Ya Trust em?
pardon the source but:
http://finance.yahoo.com/blogs/daily-ticker/europe-crisis-u-rescue-183924622.html
"We believe the time has come to knock on the door of the grand daddy of all: Pimco parent, German uber-insurer Allianz, where the crisis will eventually hit like a ton of anvils if and when things really get out of control."
When this sucker finally collapses, it's going to be spectacular.
the one eyed leading the blind?
Careful everyone. These asshats are going to ramp it in after hours.
after hours? it seems to me they've already done one helluva ramp... I just assumed they moved the 3p rumor up to 2p, but still haven't seen anything that justifies this 12pt move from the lows.
On a hilltop starting in Italy (proceeding to Spain, France, the U.S & China)
We assembled banksters
From all over the world
To bring you this message
From fractional reserve alchemists
All over the world
It's the blue pill - Red Shield peace out, bitchez!
And they sang...
We'd like to sell the plebes junk bonds
From bankrupt sovereign entities
Grow apple trees and honey bees
Leverage balance sheets to infinity
We'd like to teach the world to print
Fiat & debt in ever larger degrees
We'd like to buy all Wall Street hookers and blow
To help offload our infected balance sheets
That's the real thing
What the world wants today
Is the blue pill
Harvest time cometh, bitchez
Feels like a crash coming tomorrow. So maybe they throw kitchen sink to try to stop. Not good for Christmas shopping you know.
I bet Dick Handler is the custodian of ASSGEN.
Bankruptcy bitchez! It's the new chic.
Long olive tone skin and US dollars - http://hedge.ly/gFWVSm
here's another shoe to drop:
http://www.debka.com/article/21504/
That needs more press
Freedom of press or is the press constraining our freedom?
http://www.upfromaustralia.com/lakeysoutaus.html
Wonderful.
So sayeth the National Enquirer of Jewish Intelligence. Hedgeaccording.ly's babe of the day is far more useful.
They will be covered by the kleptocrats. Only the poor and middle class are allowed to fail.
In other news, the MSM writes that mf global money is MISSING? How is that for a WHAT THE FUCK moment.
The money was FUCKING STOLEN! War is peace and ingnorance is strength. Two motherfucking metaphors to live by!
BITCHEZZZZ!
You forgot "Hate is love!"
American financial schizophrenia designed into financial sleight of hand to bring the world down knows no bounds; when you sit on the Titanic and drill holes into its hull on the pretext that its hit the iceberg anyway, really shows how dumb this world is; panick fed speculation is the new game in ponzi disneyland.
CDS and CDO bags getting pretty full. Bagholders must be built like Conan.
And they are hammering Gold on CNBC...a "I told you so" moment.....but hey...I bought more....CDS´s....Bonds....Fiat....I´ll pass....
OT but AIG sueing the NY Fed and the US Gov because they were not bailed out is priceless. $25 billion is some serious entitlement.
So that's how CDS works.
The President is playing basketball. Bullish?
What, too cold for golf?
Gross is net short his parent company.
Waiting for Dick Bove AND TheStreet reports saying "The firms are fine"
Here's how its going to happen....There are no AAA ratings and interest rates will not go higher for the USA and EU. China is A rated and a fraud, so there is no other game. Invest in bonds at 2% regardless of what the agencies do. USA credit is a joke but its military is not and its wonderful compared to the thieves in the developing countries. Over time all debt, everywhere will be downgraded and the markets will adjust. MCD and XOM will be the only remaining AAA credits before it is over. There will be no austerity programs in the EU or the USA. That's how its going to be. What happen when Treasuries were downgraded, rates went down. So a lower rating reduces rates. Treasuries are touted as a safe haven. Ratings will go down, deficits will go up, and rates will continue to decline.
Raise hands, how many bought gold today?
Yes, I am a 'tradition'alist.
your counterparty risk hedge belong to ...................................................
LIBERTARIANS REJOICE!
D E R E G U L A T I O N is here! happy days when the "free market" self regulators start destroying themselves and only the ones that steal the most will survive.
meanwhile you Ayn Rand-ian welfare parasites won't have insurance on ANY of your assets.
oooooooooooops
3 times in one day is a little much even for you RNR/LFP.
We ought to try a free market someday.
Huge amounts of regulation hasnt stopped anything.
Government regulation to improve housing market access and guaranteeing even the most worthless credit bum could qualify for a mortgage got us into this.
If there hadnt been government guarantees and subsidy of fannie and freddie do you think people would have risked their own money so recklessly making huge pools of capital available.
We can still have rules against theft even in an Ayn Rand utopia. What a stupid piece of sarcasm from a socialist.
"rules against theft" = minimum regulation
there, you have it - there is no such thing as a free market without any regulation or rule of law
any contract needs some way to enforce it
@ Rastaman meanwhile you Ayn Rand-ian welfare parasites won't have insurance on ANY of your assets.
I didn't know I needed insurance on physical gold & silver or my AR.
You are about as smart as my son
must ... close ... above.... 1200... uh... uh....
...and it's gone.
I understand CDS pricing tells part of the story of what is going on in these markets, but to be left paying for a CDS and hoping that the counterparty will pay in a world in which the Big Boys like Allianz might default seems like a dangerous policy. I suppose the answer is to trade in the CDS but know when to get rid of them. Hot potato trade. But that can get ugly fast.
I thought CDS payoffs are unlikely in light of the ISDA's ruling on the Greek CDSs.
And Assgen is a name straight from Beavis and Butthead. "Assgen" "Hehehehe. . . cool. . snort hehheh"
Yeah well all big banks insure their crap with CDS... so yeah.
Drugs, Money and Central Banks
“The central banking-warfare investment model” is really a control model, through which a small group of people can control the most resources on the most profitable basis. Essentially what happens is: Central banks print money and then the military makes sure that other parties accept it and that the financial system continues to have liquidity.
<
http://www.mmnews.de/index.php/english-news/6326-drugs-money-and-central-banks
if all the 99%ers chipped in a few bucks, we could buy one hell of a good army!
I just love the smell of socialism dying in the morning.
Don't worry, lots' of "isms" are about to die. Got your tride in order? You better.
Whats a tride?
Why do i need it in order?
"Whats a tride?"
Maybe a colloquialism for Trident? A three-pointed spear could be useful for CQB, but I prefer to stop aggressors at the 100yd point - well before the reach of a Trident. After that, it's just hand-to-hand, and the knives come out. Bad day.
Anyway, keep all of your wealth preservation tools "in order". The day they are needed may be nearing. Or maybe not.
"lots' of "isms" are about to die"
rats! Even priapism?
only over my dead, cold member
Tyler said ASSGEN (and he wasn't talking about Cramer)
While the 'white shoe boys' as Celente calls them have an 'escape plan,' and certainly the Fed has a 'strategy,' I don't see this going well for anyone. It's way too kaotic to contain in some 'regulated' way by the Fed, ECB, GS or anyone in Euro land for that matter.
The easiest solution? Don't think paper or eAssets. These things will lose relevance as lack of trust and mark to fantasy kick-in. If you are not thinking gold, guns, clean food/water, you do not understand what is happening.
"Two ratings agencies have warned that Hungary could lose its investment-grade credit rating due to its weak growth outlook and unpredictable policy track.
Hungary is one notch above so-called "junk" status, meaning its cost of borrowing could soar without help."
http://www.bbc.co.uk/news/business-15820340
OT: Spain in headlines again. Perception management is the name of the game for them but won't change the ugly truth that they are insolvent.
http://www.ft.com/intl/cms/s/0/c94b79f0-143e-11e1-b07b-00144feabdc0.html...
The urge to lever up the client's money must be a dark urge, increasingly hard to resist, especially since corzine is untouched.
Fear not, German Fin Minister Schäuble said four days ago that in less than 24months there will be an European fiscal union, and that since Germany never enjoyed full sovereignity as a state since 1945, it should welcome giving up the whatever sovereignty is left.
Google translated:
"At the European Banking Congress in Frankfurt, said Finance Minister Wolfgang Schäuble, that "a relapse into the regulatory monopoly position of the classical nation-state" by a "very much forward as their approach" should be avoided. Germany had never been since 1945 the state of full sovereignty."
http://translate.google.com/translate?sl=de&tl=en&js=n&prev=_t&hl=de&ie=...
Source:
http://www.deutsche-mittelstands-nachrichten.de/2011/11/32894/
Die already EUSSR! May you and your Parasites, Federasts, Social Engineers, Degenerates, Traitors, Hypocrites, Bureaucrooks, Media Whores, Money Launderers and Drug Dealers burn in hell.
For those of you who invest in an IRA or for long term goals, theres a better approach than buy,hold,hope. Stocks follow the economy so analyzing the economy, specifically the factors that are "leading indicators" and having exposure to equities only when the economy is headed in the right direction and avoiding equities in favor of safe haven baskets is a much more logical approach. And missing the major drawdowns is the only way to help ensure meeting your goals. If you are interested in investing in a portfolio that tactically invests in equity and safe haven baskets via ETF's automatically, please email me at:
eclark@breakaway-partners.com
and I'll add you to the weekly market commentary & portfolio update distribution list. Its free to add you and you can follow along our model and our views. We have been RISK-OFF since 6/30 so have missed all this wicked volatility. Currently invested in short duration treasury baskets as flight to safety drives interest in our debt.
"Stocks follow the economy so analyzing the economy, specifically the factors that are "leading indicators" and having exposure to equities only when the economy is headed in the right direction"
OK then, we'll give you a call in, oh say, about 10 or 15 years? Have you tried your "method" in Japan? That would be a good trial for where we are headed.
"Currently invested in short duration treasury baskets as flight to safety drives interest in our debt. "
Geez! How is this any different than my IRA-CD? Yields are about the same, and have the same counter-party risk (US default = FDIC in flames too). Hell, my series EE Savings Bonds from the 90's are still paying anywhere from 4 to 6%.
Wait,.... Is that you Cramer?
Its a friggin' disaster in Europe!
The European Investment Bank (EIB) Ski Slope Goes Black Diamond!
http://confoundedinterest.wordpress.com/
Relatively speaking, time is the friend of the German Banking system while the enemy of every other EU banking system.
Sovereign risk plus the corporate risk premium put German banks in the catbird seat. Time will see them moving on (and poaching) large clients from other EU nations' large banks. The longer this drags out, the more complete the transfer of influence to the German banking fraternity. At a critical point in the future, politics will result in a shift to a European way (German way) rather than a nationalistic way of conducting business.
Pay me now, or pay me later.
There are many good economies. There are some great economies. There is only one "best" economy.
I am still confused as to why any credibility is given to CDS spreads any more. The IASD hasn't really fostered any trust in the investment community lately, have they?
What the ISDA giveth with one hand it takes away with the other ... You didn't really think people would collect on these things, did you? And besides, if there was a real threat of collecting on these, the Sovereigns would wave their magic wands and declare these contracts unenforceable as they violate the public interest. The only purpose of CDSs was to inspire confidence that risk was something that could be traded away, not actually made to go away.
why? the greek CDS didnt have to pay out, so what makes you think that any of them ever will?
why? the greek CDS didnt have to pay out, so what makes you think that any of them ever will?
Are they also going to stop the run on bank deposits, life insurers, the EIB, the EFSF... is there no end to this relentless manipulation and printing...
These ghastly crooks are trying to prevent any of us from having any escape... they are actively seeking to destroy and enslave anyone holding any capital This is when I really develop a strong belief in directed history... when it becomes a glaringly obvious fact that this repulsive Illuminati crook is desperate to cling on to his nasty plans at any cost to the rest of humanity...Sure... so the @#$#@$ can do the exact opposite....