American Axle

Frontrunning: January 26

  • Alexis Tsipras: the Syriza leader about to take charge in Greece (Guardian)
  • Tsipras to form anti-bailout Greek government after big victory (Reuters)
  • Tsipras Forges Anti-Austerity Coalition in EU Challenge (BBG)
  • East Coast braces, flights canceled as 'historic' blizzard bears down (Reuters)
  • Rebels press Ukraine offensive, Obama promises steps against Russian-backed 'aggression (Reuters)
  • Syriza Victory Brings Hope for Immigrants of EU Access (BBG)
  • For Saudis, Falling Demand for Oil Is the Biggest Concern (BBG)
  • Oil prices fall on market relief over Saudi policy (Reuters)

Frontrunning: November 19

  • Yellen Inherits Greenspan’s Conundrum as Long Rates Sink (BBG)
  • West African Mining Projects Take Hit From Ebola Crisis (WSJ)
  • Saudi oil policy uncertainty unleashes the conspiracy theorists (Reuters)
  • Senate Rejection of Keystone XL Measure Sets Up 2015 Showdown (BBG)
  • Ferguson, Missouri, remains on edge ahead of grand jury report (Reuters)
  • Putin Said to Stun Advisers by Backing Corruption Crackdown (BBG)
  • Italian ‘Invasion’ Has Swiss Fuming as Immigration Vote Looms (BBG)
  • Apple and Others Encrypt Phones, Fueling Government Standoff (WSJ)

Frontrunning: October 21

  • Total CEO de Margerie killed in Moscow as jet hits snow plough (Reuters)
  • China GDP Growth Rate Is Slowest in Five Years (WSJ)
  • Oil at $80 a Barrel Muffles Forecasts for U.S. Shale Boom (BBG)
  • Carney Faces Scrutiny on Worst Payments Outage Since 2007 (BBG)
  • Ebola crisis turns a corner as U.S. issues new treatment protocols (Reuters)
  • Gold Buying Rebounds in India on Diwali Jewelry Sales (BBG)
  • China-backed hackers may have infiltrated Apple's iCloud (Reuters)
  • Greece Said to Seek Recycling of Bank Funds for Exit (BBG)

Frontrunning: August 14

  • Police fire tear gas, stun grenades at Missouri protesters (Reuters)
  • Putin’s Pipeline Bypassing Ukraine at Risk Amid Conflict (BBG)
  • Russia's Largest Oil Company Seeks $42 billion to Weather Sanctions (WSJ)
  • Shells hit central Donetsk, Russian aid convoy heads towards border (Reuters)
  • U.S. Tightens Sanctions, Putting More Russian Companies at Risk (BBG)
  • How to Blindly Score 43% Profit Overnight in China Stocks (BBG)
  • Tears guaranteed: San Diego Pension Dials Up the Risk to Combat a Shortfall (WSJ)
  • Euro Recovery Halts as Germany Shrinks, France Stagnates (BBG)
  • Billionaire Found in Middle of Bribery Case Avoids U.S. Probe (BBG)
  • Hillary Clinton, Barack Obama 'Hug It Out' on Martha's Vineyard (WSJ)

Frontrunning: July 22

  • EU Works to Punish Russia as MH17 Bodies Leave Rebel Area (BBG)
  • Bodies From Malaysia Airlines Flight Begin Long Trip to Netherlands (WSJ)
  • Israel pounds Gaza as Kerry arrives (Reuters)
  • U.S. judge dismisses Republican lawsuit over Obamacare subsidy for Congress (Reuters)
  • Israel Soldier Missing Amid Assault on Hamas in Gaza (WSJ)
  • Detroit Retirees Vote in Favor of Pension Cuts (WSJ)
  • Russia Axes 1st Bond Sale in 3 Months as Ukraine Drives Up Yield  (BBG)
  • Wall Street Cut From Guest List for Jackson Hole Fed Meeting (BBG)
  • Credit Suisse to Exit Commodities, Posts Big Quarter Loss (BBG)
  • Draghi Cedes Euro Control to Yellen on Fed Rate Wagers (BBG)

Frontrunning: December 5

  • LA port workers to return Wednesday (AP)
  • Iran says extracts data from U.S. spy drone (Reuters)
  • Obama to stress need to raise debt limit "without drama" (Reuters)
  • Big Lots Chief Probed by SEC (WSJ)
  • NATO missiles to be sent to Turkey, Syria clashes rage (Reuters)
  • GOP Deficit Plan Irks Conservatives (WSJ)
  • Japan Can End Deflation in Months, Shirakawa Professor Says (BBG) ... almost as good as Bernanke ending inflation in 15 minutes.
  • Osborne Prepares to Breach Fiscal Rules Amid U.K. Growth Slump (BBG)
  • Global Banking Under Siege as Regulators Guard National Interest (BBG)
  • Freeport plans return to energy (FT)
  • Serbian NATO envoy jumps to death at Brussels airport (Reuters)
  • Tide Turns After a Flood of Chinese Listings (WSJ)
  • Australian economy loses steam (FT)
  • Euro Crisis Feeds Corruption as Greece Slides in Rankings (BBG)

Frontrunning: November 20

  • More QE could distort rather than deliver (FT)
  • Soros Buying Gold as Record Prices Seen on Stimulus (BBG)
  • EU Leaders Face Greek Aid Gap in Brinkmanship With IMF (BBG)
  • Weak data point to bigger economic drag from Sandy (Reuters)
  • Shirakawa Pushes Back With Criticism of Abe Unlimited Easing (BBG) But... but... Bernanke??
  • French Downgrade Widens Gulf With Germany as Talks Loom (BBG)
  • Japanese Poll Shows LDP Advantage Ahead of Election (WSJ)
  • BOJ in the Balance as Next Government Picks Top Posts (BBG)
  • Exchanges Get Closer Inspection (WSJ)
  • Greece edges closer to €44bn bailout (FT)
  • Japan Government to Spend 1 Trillion Yen on Next Stimulus (BBG)
  • China’s Richest Woman Divorces Husband, Fortune Declines (BBG)

Frontrunning: October 3

  • No Joy on Wall Street as Biggest Banks Earn $63 Billion (Bloomberg)
  • And more good news: IMF’s Blanchard Says Crisis Will Last a Decade (Reuters)
  • Hobbit Returns to Find Middle Earth Has Become Expensive (Bloomberg)
  • Freddie's Foreclosure Plan Hits Roadblock (WSJ)
  • Who will buy the FT? Pearson CEO Scardino Will Step Down as Fallon Takes Over (BBG)
  • Jeremy Lin Said to Be in Talks With Harvard on Licensing Deal (Bloomberg)
  • Jon Weil tears apart the NYAG "prosecution" - Eric Schneiderman Will Have to Do Better Than This (BBG)
  • Portugal Offers to Exchange Bonds as It Seeks Debt Market Access (Bloomberg)
  • Is unlimited growth a thing of the past? (FT-Martin Wolf)
  • European Bank Capital Results Overtaken by Tougher Global Rules (Bloomberg)
  • China’s Slowdown Reverberates as ADB Cuts Forecasts (Bloomberg)
  • Tokyo has no plan to extend currency swap deal with Seoul (Reuters)

Frontrunning: August 1

Debt-Limit Deal to Get Congress Vote Today (Bloomberg)
Debt compromise favours Republican demands (FT)
An Agreement Is Struck, but the Deficit Isn't Solved (WSJ)
Hedge fund firm Lansdowne sells Goldman stake (Reuters)
China’s Official PMI Falls (WSJ)
Asia’s Economic ‘Soft Patch’ Jars With Inflation, Posing Dilemma on Rates (Bloomberg)
Lagarde Warns EU to Speak with one Voice (FT)
An Uncomfortable Final Stretch for Trichet (FT)

CapitalContext's picture

Stocks and spreads lost ground today following an ebullient pre-open and relatively stable start as early up-in-quality themes played out. Breadth in credit was positive but low beta considerably outperformed high beta and there was notable net selling in the secondary corporate bond market especially in the Financials and Consumer NonCyclical sectors.

Prepare For A Trading Revolution: Here Come CDS For Retail Investors

Ever felt excluded from the list of people who can (allegedly) buy insurance on their neighbor's house, and then burn it down? That's all about to change. The CBOE has announced that that on Tuesday, March 8, the Exchange will begin trading newly-designed Credit Event Binary Options (CEBOs) contracts. In essence these will be like Credit Default Swaps, accessible to everyone, which will have a $1000 payoff per contract in the event of a bankruptcy before contract expiration. Since the contracts will have specific prices, they will in essence replicate the LIBOR spread on CDS (or the inverse cash bond pricing from par), and the closer a company is seen as being to bankruptcy, the higher the contract price. What this will do is to revolutionize the shorting aspect of trading, as there will be no borrowing need to express a bearish outlook on a company, and no possibility for State Street, BoNY or your favorite repo desk to pull your borrow from underneath your feet thus forcing a short squeeze. In essence, this will be a marginable equity product trading as a credit derivative. We are delighted that finally one will be able to express a bearish opinion without fears of gross market manipulation and melt up, as the CEBOs will have little or no structural relationship to what happens with the broader stock market.

Daily Highlights: 11.2.2010

  • Fed likely to announce $500B of securities purchases: Bloomberg survey.
  • India's central bank raised interest rates by 25 bps - for a sixth time this year.
  • Yen declines against Euro as Asian recovery signs reduce demand for refuge.
  • Alberto-Culver's Q4 net rises 31% on 12% jump in sales.
  • Altra Hldgs sees FY10 EPS of $0.95-1.00 (cons $0.88); revs at $512-517M.
  • Anadarko Petroleum reported Q3 EPS of $0.21, 28% below the average analyst estimate.
  • Archer-Daniels-Midland's Sept. net income declined from $496M to $345M.

Daily Credit Summary: May 20 - Run Away

Spreads ended the day notably wider (HY wider than 'flash-crash' close) with stocks managing to slightly underperform on a beta-adjusted basis as broad-based selling in single-names and indices made today feel a little more 'real' than recent swings. There are a few signals of regime change today that make us nervous even with potential clarity from Germany and FINREG due very soon. After some midday covering on EUR (eh hem intervention), the cloture vote triggered more selling and that weakness gathered pace and stocks and credit closed considerably weaker. ES_F closed at the lows of the day and while credit was weak, equity's beta-adjusted performance was notably worse than credit's on the day. HY, which traded over 690bps intraday (shy of the intraday wides of 706bps on 5/6), closed wider than the 'flash-crash' day's close taking it back to end NOV09 wides. IG was weak but remained inside of the 5/6 closing levels. HY-IG decompressed further and we hop those clients who followed us into this trade move those stops up to at least breakeven now (with a target of 600bps).

Daily Highlights: 5.20.2010

  • Asian stocks fall for fifth day on Europe concern; Commodity shares gain.
  • British government plans to partially privatize struggling Royal Mail.
  • China officials say won't yield to yuan pressure at U. S. talks.
  • China's growth unexpectedly accelerated in the first quarter of 2010: Poll.
  • Euro falls to lowest since April 2006 on European debt crisis.
  • Fed officials are in no rush to sell mortgage assets, Meeting minutes show.