While Banks Are Being Shorted With Impunity On Euro Sovereign Debt Panic, Did Someone Forget About BlackRock?

Tyler Durden's picture

Why? Primarily because of this innocent statement by former R3 scion and former Lehmanite Rick Rieder, currently employed by the firm that ostensibly has more clout than even Goldman Sachs: BlackRock. From October 21 "BlackRock Inc. Chief Investment Officer Rick Rieder said the world’s biggest money manager remains a buyer of Italian government debt as European policy makers gather to address the region’s sovereign debt crisis. "Italy is attractive,” Rieder said during an interview on “InBusiness With Margaret Brennan” on Bloomberg Television. “As long as we are moving toward solutions, we think Italy is very reasonable at these levels. BlackRock, which manages about $3.66 trillion in assets, has also been buying debt issued by financial firms and high- yield bonds, Rieder said. As with the Italian bonds BlackRock has bought, the financial debt will benefit “as soon as you see stability,” Rieder said." Uh, Rick, you are marking to market right? Because Your P&L would be a 100% correlation to the following chart, which shows BTP prices since October 21.

Of course, BlackRock will find Italian bonds even more reasonable at the current levels...

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zer0hedge's picture

Geez dude, not a lot of people would of picked that out. Seems like you are able in take in a lot of information daily AND remember it. Thank you.

I see there are blog posts labeled "Guest Post" every few days and wanted to know what it took to be able to have a guest post published here. I also see a section for contributors who seem to have their very own internal blogs on the site and am interested in getting one of those started for myself as well.

Unprepared's picture

To avoid confusion, you have to start by changing your screen name. Look for something more original, like ..... Tyler0Durden from that movie.

zer0hedge's picture

Is the name why I'm getting the negative votes or is it that the answer to my question is just obvious? I browsed around for a bit and couldn't figure it out. Let's say I go ahead and change my name to " BoyScout" or something like that. What then?

infinity8's picture

Let's have your resume, dude.

Shirley Wilfahrt's picture

I suggest "Dumphrey Blowfart" for your new user name. 

Best Satan in Town's picture

Seems like your avatar is making a Wilfahrt.

Goldman Hufs's picture

You could start by contributing relevant or witty comments to the articles posted.  Let people see that you are worth their attention.  Then down the road, very far down the road, you could include a link to your blog at the bottom of your posts.  If people will show up then you know you're doing something right.  If people don't then either take a step back to work on your craft or select a new career path.  I will say that you've dug yourself a pretty big hole by using your first comment to ask how you can ride this website's coattails to make money which was only compounded by choosing to take a username that you clearly know little about.

My advice would be to read the articles and more importantly the comments for awhile before jumping in the deep end.   

Newsboy's picture

First you must study the mystery of Tyler Durden, "The Ghost Who Walks"

Heh, heh, heh,heh....

Unprepared's picture

Until they hit a black rock

Western's picture

Could happen this wednesday...

DarkestPhoenix's picture

Everyone knows this is the fate of the Black Rock:


philipat's picture

What exactly is "Mark to market"?

Overflow-admin's picture

It's expressing the fiat value in today's market fiat valuing. It is a common brainwash concept for saying "hey that contract has value! see how much people agree to pay for it today"


Not to mention that those people agreeing to pay for something that has not any intristic value are completely retarded assholes.

fuu's picture

"As with the Italian bonds BlackRock has bought, the financial debt will benefit “as soon as you see stability,” Rieder said".


I am already feeling pretty stabby.

JPM Hater001's picture

So I should cough up another couple grand to short Blackrock?

um, OK.

Unprepared's picture

You can't. And nobody dares selling puts on them of fear of reprisals.

dark pools of soros's picture

um, isn't it obvious they are just pumping to get rid of the ones they have??   

DonutBoy's picture

+1  That's exactly what he's doing.  It's insane to believe for a moment that they would be talking up the price of something they're buying.

earleflorida's picture

blackrock inc. is more poweful than the squid  -

takes ~ 2years to get the facts via 'foia' -

 ask sanders, and paul



truont's picture

Rick Reider just announced:

"Jeepers!  Italy bonds are now even *more* attractive than when I first bought them last month!"

css1971's picture

Buy the dip.

Italy can't be allowed to go under. While Greece can kill a couple of unstready banks, Italy would turn the entire Eurozone into a glassed wasteland for the forseable future.

Literally TBTF. i.e. minds will be concentrated.


chet's picture

"Italy can't be allowed to go under"

But who is going to stop it?  And with what money?

css1971's picture

ECB. Why else would they put Draghi in? They'll devalue the Euro.

writingsonthewall's picture

....and the Germans? Are you suggesting they will stump up money for the bailouts and then have the spectre of inflation as a 'reward'?


If you think they're going to put up with that - then you don't know Germans.


Unless you're currently paying the mortgages of all the peeps in your street who are out of luck - then you're living in la la land.

sumo's picture

Germany and Italy could get together. like old times, and take Greece's gold.

That would give the can a kick.

Ponzi Unit's picture

Gee, I trust Black Rock. Maybe I'll buy some EZ debt.

Overflow-admin's picture

Yeah debt is rising in value! Boooyaaaah! /sarcasm

TooBearish's picture

Blackrock is a long term investor....clearly

topcallingtroll's picture

That's what I say too when I miss the top.

Ghordius's picture

BlackRock the HenchMan
There Is More Than Money On The Table, IMO

matias100's picture

No sense to be a long term investor if the chances of seing your investment fail are that high. It's like having called people buying dotcom companies months before they were about to fail "long term investors" just because they didn't mind the risk involved. Italy is no Greece or Lehman and 2011 is no 2008!

Lord Welligton's picture

Between a blackrock and a hard place?

o2sd's picture

They think they can move the market. Who knows, in this market they could be right. On the other hand, they could be the next Barings.

JPM Hater001's picture

April -2012 155 Puts are at an almost 12% premium.  All this and the VIX is at 30 and down for the day....


Lord Welligton's picture

 “as soon as you see stability,”

OK When will we see that?

BetTheHouse's picture

Italy is not attractive. Margaret Brennan is though.

DogSlime's picture

If the Italian bonds are attractive, why not bet the farm on Greek 1 Year?

Yield is 236.9.  Blackrock should back up the truck on those.  You don't get returns like that every day :)

It will be fine when the "stability" arrives... soon... It will be soon, wont it?  Wont it?

monopoly's picture

Geesh, if Blackrock blows up, it will make the blow up of Citi when it implodes look like childs play.

LongSoupLine's picture

"Uh, Rick, you are marking to market right?"



I'm certain Rick's response would be, "Show me anyone else that marks to market, or any regulator that requires it, and I'll consider it."

Dr. Engali's picture

Marking to market... that's a good one. We saw what happened the last time the had to be honest about the value of what's on their books.

FlyingDutchman's picture

Grants is bullish though a few weeks ago.

Mark123's picture

So, why would we take anything a hedge fund says publicly as anything other than a tactical move to benefit their trade?


I read this as a way to unload some bad trades on dupes.  The only way Italian debt will be stabilized is if the ECB really starts printing...I think we are still far from that decision.

Skyprince's picture

Mark to market?  What's that?  Oh yeah...some archaic accounting tool...used back in the "dark" ages...a time before our more inspired and creative accounting methods came on the scene.  Can't believe people used to actually do that.


Zola's picture

Blackrock = strong hand ?

orangedrinkandchips's picture

why do I have the lyric in my head........(sorry kid rock)