The Bank Of Pete, Or Of Any Tom, Dick, Or Harry
Somehow I feel bitter about this round of LTRO. Something about LTRO2 really strikes me as obscene. The only person who know without a doubt must be foaming at the mouth is Jon Corzine. His trade is not only encouraged by everyone, it is fully supported, and the participants don’t even have to wait for […]
Good Thing Prices Paid Don’t Count As Inflation
Early data was mixed. Hints of inflation and lower than expected spending, but income was up and the jobs data was decent. The consumer comfort index deteriorated, but that is a relatively minor data point. On the other hand, ISM was decidedly weak. Missed by a decent amount, and prices paid jumped even more […]
Market Share, Profitability, Why CDS Isn’t On An Exchange
So, yesterday it was revealed that both Goldman and JPM had about 145 billion of “gross” notional outstanding on CDS related to the PIIGS. That means they each had roughly 145 billion of purchases and sales. They spoke about various netting agreements that makes the real number lower. They also mentioned with collateral and on […]
(BN) Greece Debt Insurance Doesn’t Have to Pay Out, ISDA Says
This is a very good summary of what is going on (and yes, I’m biased because I’m quoted, but it is a good overall summary and describes the situation well). +——————————————————————————+ BFW 03/01 12:39 No Payout on Greece $3.25 Billion Default Swaps, ISDA Says BFW 03/01 11:16 ISDA Starts Meeting to Rule on […]
Unicredit Bonds
Unicredit is trying to sell a slug of its bonds. It looks like this time they are actually trying to sell the bonds, rather than get them guaranteed by the Italian government and pledge them to the ECB. The timing is obviously designed to take advantage of the LTRO money out there. It will be very curious to […]
Greek English Law Bonds
We have not yet seen anyone file a lawsuit on behalf of holders of English law bonds, but they may fight that they have been “subordinated” and have experienced an Event of Default because they are no longer “pari passu” with all bondholders. It would basically be the same argument that ISDA had to consider, […]
Greece And ISDA
No Credit Event yet. As expected. Greece CDS doesn’t seem to be reacting to the news, which makes sense, because most people in the market didn’t think a Credit Event had occurred yet. I am a bit surprised that ISDA didn’t clarify what would constitute a Credit Event. Their statement says that these rulings don’t […]
The Early Story Of The Day Is Italian And Spanish Credit
Bonds and CDS for both countries are incredibly strong this morning. They are outliers versus almost anything else out there. Stocks are up a bit after a couple of rounds of overnight weakness. The strength in Spain and Italy is a bit surprising but so is the fact that the market isn’t completely in love […]
Feels Like It Could Be An Interesting Thursday
Futures sold off after the close – which confounded the buy the dip crowd who were already surprised by the late day fade. Chinese Manufactured Manufacturing PMI came in at 51, vs 50.9 expected and after stories of constricting credit in China, is a modestly welcome surprise. Not strong enough to carry the day and […]
Gold And The Euro
Almost scary but the Euro is finally reacting like it should to money printing and circularity (if not Ponzi). It is weak not because there will be defaults but because the “solution” does nothing but perpetuate the weak countries and zombie banks. Maybe it’s an aberration but the Euro is selling off because of the […]
