REITs

REITs

Fed Discloses No New Liquidity Swaps, Lies About Value Of Maiden Lane I-III

Yesterday, the Fed disclosed that liquidity swaps have remained at 0 for the eleventh week in a row. This is not unexpected, as it is in line with the Fed's statement of eliminating emergency liquidity facilities (and the CB liquidity swap lines are among these). Of course, there is no way to truly verify whether or not the Fed is syphoning off US money to once again bail out foreign central banks as the Fed is shrouded in secrecy, and while we have to figure out just what exchange Bernie Sanders concluded with Chris Dodd, on the surface we are disappointed that the socialist is not sticking with his initial much stronger language for Fed transparency. Furthermore, we know all too well that the Fed would never lie to the US population, right - just look at the chart below, which discloses the Fed-determined values of Maiden Lane I-III. Somehow, the combined value of these three Bear/AIG rescue facilities have surged to one year highs in the last week. This is somewhat stunning as we reported a week ago that the Fed is about to be crammed down on its Red Roof portfolio holdings due to initiatied foreclosure proceedings. We have no figured out why REITs have been defying gravity for the past year - according to the Fed and the FASB, foreclosures are now a valuation enhancing process. How could we be so blind not to realize this.

Euro Tanks on Bailout, Hedge Funds Cheer and Buy REITs, Retailers, et al

How many times can they run the same play over and over? The Eurozone dive bombs, and investors immediately start buying REITs, retailers, and other assorted garbage. Maniacal trading has overtaken the stock exchanges as the 20-yr. old motion chasers are getting frantically horsewhipped by the FemBot portfolio managers to "buy whatever is going up, regardless of fundamentals".

PIIGS On The Verge of Insolvency. Investors Celebrate By Buying REITs and Brokers

Once again, the algospasms have turned many funds into dust as those attempting to short brokerage stocks, REITs, etc. in front of the European implosion are getting killed. Clearly, investors are voting that U.S. commercial real estate is the last bastion of safety, and the primary growth industry in 2011 will be stock trading.

Whipping By FemBots Intensifies, Gamers Dump GOOG and Buy TZOO

The pressure is on the 19-year old motion-chasing "portfolio managers" at TIAA-CREF, CalPers, Harvard Endowment, Gates Foundation, et al to buy whatever is going up and sell losers immediately, and continue looking in the garbage bins for more "alpha" to goose returns.

Total Spread Blowout on PIIGS, Algospasms Trigger Forced Short Covering in Consumer Stocks and REITs

Today is proof that the Algo/Igor/Robo computer trading programs have run amok. While Wall St. engages in bear raids against foreign countries, panicked algos are triggering wild squeezes everywhere, causing lots of head scratching among the pundits trying to explain these insane moves. Proof that the worse the Greece situation gets, the retail stocks simply go up faster.

Daily Credit Summary: April 21 - The Great Divide

Spreads managed to hold onto modest widening today in the US as IG underperformed HY, indices underperformed intrinsics, single-name activity was extremely muted, and low beta underperformed high beta. Notable underperformance in Europe, spreading idiosyncratic sovereign risk to SovX to FINLs to Main and up to XOver was not enough to upset the optimistic US investor today, though it was one of the least convicted days in a long time.

Financial Lexicon 101: Summary Of Key Terms

Even as Bank of America is preparing to restart securitization and thus provide the single greatest gift to creditors the world over, as this is merely the first step in wiping out/transferring yet more trillions in private sector debt, it has done the public a bigger favor by compiling the following list of key terms for all those lost in the current labyrinth of definitions,acronyms and euphemisms. Since following the Goldman legal plight will require a facility with some heretofore quite complex constructs, the following catalog is a must read for all financial novices.

Daily Credit Summary: April 14 - Ain't No Stopping Us Now

Spreads were broadly tighter today with HY outperforming IG as equities got a boost from retail sales, Bernanke's low-and-long comments, and Beige book headlines. JPM's earnings (along with CSX's beat and INTC's smash) also helped as financials outperformed in equity and credit. The psychological break of several critical levels in equity and credit indices seems relevant for the moment (despite the survivorship bias inherent in these long-run indices reducing the real worth) but there was no arguing with the breadth today as tighteners outpaced wideners by over 8-to-1.

Retailers, REITs Celebrate Michelle's New Red Outfit

Anyone notice that Michelle C-Squared has been gradually dolling up for the inevitable Dow 11,000? Hate to sound like a broken record, but it appears that each day we have another round of breakouts in the retail and REIT sector, as if fund managers are giddy at the prospect of Michelle losing a few buttons on her blouse on Monday.

"Battling Brains" at PIMCO Must Be Sweating Bullets

Last weekend The Los Angeles Times featured a story about the war room discussions at PIMCO. Now with over $1 trillion under management and bonds teetering, the pressure must be huge to start chasing equities and other risk assets.