This page has been archived and commenting is disabled.

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...

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 11/07/2011 - 16:13 | Link to Comment zer0hedge
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.

Mon, 11/07/2011 - 16:14 | Link to Comment Unprepared
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.

Mon, 11/07/2011 - 16:26 | Link to Comment zer0hedge
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?

Mon, 11/07/2011 - 16:35 | Link to Comment infinity8
infinity8's picture

Let's have your resume, dude.

Mon, 11/07/2011 - 17:24 | Link to Comment Shirley Wilfahrt
Shirley Wilfahrt's picture

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

Mon, 11/07/2011 - 20:08 | Link to Comment Best Satan in Town
Best Satan in Town's picture

Seems like your avatar is making a Wilfahrt.

Mon, 11/07/2011 - 19:12 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Go with "Canteen Boy"

Mon, 11/07/2011 - 19:43 | Link to Comment Goldman Hufs
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.   

Mon, 11/07/2011 - 23:36 | Link to Comment Ponzi Unit
Ponzi Unit's picture

Generous of you, Mr. Huf.

Mon, 11/07/2011 - 20:41 | Link to Comment Newsboy
Newsboy's picture

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

Heh, heh, heh,heh....

Mon, 11/07/2011 - 16:12 | Link to Comment Unprepared
Unprepared's picture

Until they hit a black rock

Mon, 11/07/2011 - 16:46 | Link to Comment Western
Western's picture

Could happen this wednesday...

Mon, 11/07/2011 - 19:17 | Link to Comment DarkestPhoenix
DarkestPhoenix's picture

Everyone knows this is the fate of the Black Rock:

http://www.youtube.com/watch?v=6SR0dI7PXX8 

Mon, 11/07/2011 - 16:46 | Link to Comment Western
Western's picture

>

Mon, 11/07/2011 - 19:05 | Link to Comment philipat
philipat's picture

What exactly is "Mark to market"?

Mon, 11/07/2011 - 23:36 | Link to Comment Ponzi Unit
Ponzi Unit's picture

Wahlberg in underwear.

Tue, 11/08/2011 - 05:39 | Link to Comment Overflow-admin
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.

Mon, 11/07/2011 - 16:12 | Link to Comment fuu
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.

Mon, 11/07/2011 - 16:12 | Link to Comment JPM Hater001
JPM Hater001's picture

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

um, OK.

Mon, 11/07/2011 - 16:17 | Link to Comment Unprepared
Unprepared's picture

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

Mon, 11/07/2011 - 17:29 | Link to Comment dark pools of soros
dark pools of soros's picture

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

Mon, 11/07/2011 - 17:56 | Link to Comment DonutBoy
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.

Mon, 11/07/2011 - 19:53 | Link to Comment earleflorida
earleflorida's picture

blackrock inc. is more poweful than the squid  -

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

 ask sanders, and paul

http://www.ny.frb.org/aboutthefed/BlackRock_Agency_MBS.pdf

http://www.ronpaul.com/congress/legislation/111th-congress-200910/audit-...

Mon, 11/07/2011 - 16:12 | Link to Comment truont
truont's picture

Rick Reider just announced:

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

Mon, 11/07/2011 - 16:28 | Link to Comment css1971
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.

 

Mon, 11/07/2011 - 16:50 | Link to Comment chet
chet's picture

"Italy can't be allowed to go under"

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

Mon, 11/07/2011 - 17:47 | Link to Comment css1971
css1971's picture

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

Mon, 11/07/2011 - 18:42 | Link to Comment writingsonthewall
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.

Mon, 11/07/2011 - 21:32 | Link to Comment sumo
sumo's picture

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

That would give the can a kick.

Mon, 11/07/2011 - 23:40 | Link to Comment Ponzi Unit
Ponzi Unit's picture

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

Tue, 11/08/2011 - 05:44 | Link to Comment Overflow-admin
Overflow-admin's picture

Yeah debt is rising in value! Boooyaaaah! /sarcasm

Mon, 11/07/2011 - 16:12 | Link to Comment TooBearish
TooBearish's picture

Blackrock is a long term investor....clearly

Mon, 11/07/2011 - 16:15 | Link to Comment topcallingtroll
topcallingtroll's picture

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

Mon, 11/07/2011 - 16:53 | Link to Comment Ghordius
Ghordius's picture

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

Mon, 11/07/2011 - 17:30 | Link to Comment matias100
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!

Mon, 11/07/2011 - 16:14 | Link to Comment Lord Welligton
Lord Welligton's picture

Between a blackrock and a hard place?

Mon, 11/07/2011 - 16:15 | Link to Comment o2sd
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.

Mon, 11/07/2011 - 16:16 | Link to Comment JPM Hater001
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....

LMFAO

Mon, 11/07/2011 - 16:17 | Link to Comment Lord Welligton
Lord Welligton's picture

 “as soon as you see stability,”

OK When will we see that?

Mon, 11/07/2011 - 16:18 | Link to Comment BetTheHouse
BetTheHouse's picture

Italy is not attractive. Margaret Brennan is though.

Mon, 11/07/2011 - 16:19 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Viva Italia!

 

Mon, 11/07/2011 - 16:20 | Link to Comment DogSlime
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?

Mon, 11/07/2011 - 16:26 | Link to Comment monopoly
monopoly's picture

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

Mon, 11/07/2011 - 16:23 | Link to Comment LongSoupLine
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."

Mon, 11/07/2011 - 16:32 | Link to Comment Dr. Engali
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.

Mon, 11/07/2011 - 16:33 | Link to Comment FlyingDutchman
FlyingDutchman's picture

Grants is bullish though a few weeks ago.

Mon, 11/07/2011 - 16:33 | Link to Comment Mark123
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.

Mon, 11/07/2011 - 16:35 | Link to Comment Skyprince
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.

 

Mon, 11/07/2011 - 16:36 | Link to Comment Zola
Zola's picture

Blackrock = strong hand ?

Mon, 11/07/2011 - 16:37 | Link to Comment orangedrinkandchips
orangedrinkandchips's picture

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

 

"MY NAME IS BLAAAAAAAAAAAAACK ROCK!"

Mon, 11/07/2011 - 16:50 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

i was thinking more OAR

http://www.youtube.com/watch?v=qzMW1eSd7IU

 

Mon, 11/07/2011 - 16:38 | Link to Comment ThisIsBob
ThisIsBob's picture

A banker talking his book on TV?  Who woulda thunk it?

Mon, 11/07/2011 - 16:42 | Link to Comment ultraticum
ultraticum's picture

Would you loan to Italy at 6.7%?

Would you loan to Italy at 6.7% on 100 to 1 leverage and knowing you're big enough to be bailed out if it went sour?

Answers:  No and Yes.  Same investment.  Same yield.  Different side of bailout equation.

Mon, 11/07/2011 - 16:48 | Link to Comment Mercury
Mercury's picture

Now we know who JEF's first (and maybe only) call was...

Mon, 11/07/2011 - 16:51 | Link to Comment Amish Hacker
Amish Hacker's picture

"Italy is attractive... as long as we are moving toward solutions."

Um, Rick, I think I found the problem...

Mon, 11/07/2011 - 16:53 | Link to Comment Scalaris
Scalaris's picture

“As long as we are moving toward solutions, we think Italy is very reasonable at these levels"

 

$3.66 trillion in assets and their reasoning still has the vagueness of a daily horoscope. Debt-on-sale fever I think it's called.


Mon, 11/07/2011 - 18:59 | Link to Comment Leopold B. Scotch
Leopold B. Scotch's picture

Solution - OPM (pronounced opium) = Other People's Money to bail your asses out.  Again. And Again. And yet Again. and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and again.

Mon, 11/07/2011 - 16:57 | Link to Comment imaginalis
imaginalis's picture

BlackRock's off

Mon, 11/07/2011 - 17:04 | Link to Comment mynhair
mynhair's picture

He also said buy shiny stuff.

Mon, 11/07/2011 - 17:25 | Link to Comment lizzy36
lizzy36's picture

Averaging down is the new killing it.

Don't be sore....buy some more (until the K-Y kicks in)

Mon, 11/07/2011 - 17:31 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

mark2market?

blackrock, if found to be doing god's work, will get the theological exemption

Mon, 11/07/2011 - 17:56 | Link to Comment NumberNone
NumberNone's picture

Black Rock was a ship that was blown up on the tv series Lost.  Live imitating art.

http://lostpedia.wikia.com/wiki/Black_Rock

 

Mon, 11/07/2011 - 18:04 | Link to Comment prophet
prophet's picture

Good thing they are not systemically important.

Mon, 11/07/2011 - 18:24 | Link to Comment BennyBoy
BennyBoy's picture

Balance sheet fraud needs to expand.

Make it a growth industry.

Tue, 11/08/2011 - 05:34 | Link to Comment Overflow-admin
Overflow-admin's picture

the financial debt will benefit “as soon as you see" STAB-ILL-EEEEETEEEEEE

Do NOT follow this link or you will be banned from the site!