i appreciated steve waldmans article at his excellent blog interfluidity which was also posted at naked capitalism.a i have a slightly different take on the topic which i expressed in the comments section of each blog steve i think we had two maybe three things go on here. first the originate to sell model failed because basic underwriting was not done well. the incentives against failure were not...
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in the midst of a loosening cycle the fed keeps the monetary base flat.a this is not normal.a instead they use their highquality balance sheet to bail out the liquidity problems of banks brokerdealers and maybe others all while not expanding high powered money.a this is not normal either.a after all the fed wants to heal the providers of badly underwritten credit and increased their efforts last w...
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the us government prepares for the fannie maefreddie mac rescue which will only cost 25 billion honest by raising its permitted debt ceiling by 800 billion to 10.6 trillion. via alea to put that figure in context the gses own or guarantee around 6 trillion in us mortgages the law also included a 300 billion fund to help distressed borrowers restructure their mortgages.......
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deutsche banks jain crisis is solvency not liquidity a anshu jain head of global markets at deutsche bank ag said in remarks thursday that most financial institutions are now facing a solvency issue around housing paul jackson housingwire fha mortgages increase among home buyers jim woodard the latest fha activity report shows mortgage applications running at a 2.1 million annual rate compar...
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today is the final exam for the course ive been teaching this summer. so i need some reading material for when im not watching the students take their exam. here are two fun ones i just downloaded one via alea arxiv0803.3913 the reverse of the law of large numbers authors kieran kelly przemyslaw repetowicz seosamh macreamoinn abstractthe law of large numbers tells us that as the sample siz...
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recently we covered the shutdown of the auction rate securities market here. risks peter madigan wrote the apparent explanation for the rapid seizing up of the market was the almost simultaneous decision by every auction agent to pull out of their backstop role in taking unwanted securities on to their balance sheets. in the weeks that followed brokerdealers have remained silent on why they chose ...
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no changes to libor according to the bba apparently there wasnt that much of a need for reform after all. this from the wall street journal blamed citigroup inc. westlb hbos plc j.p. morgan chase co. and ubs ag for reporting falsely low borrowing rates and skewing libor down. defending libor are alea and felix salmon. the ft isnt happy writing ...some officials hoped this might quell the current...
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fear of rising inflation gathered steam this week with worrisome developments on a number of fronts. cibcs fascinating analysis of how soaring oil prices are eroding east asias competitive advantage in manufacturing by boosting shipping costs was a populr topic. in chinas case the problem is exacerbated by exchange rate and labor issues as well as increased demand for deisel fuel as a result of t...
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we apologize for an admittedly less than comprehensive linkfest today. thanks for your patience. a rift in the world of fundamental indexation. wsj.com under watch libor and oil. wsj.com ibid is 100 a barrel oil going to be hard to sustain economists view real time economics do i think that libor is perfect nobut libor is not nearly as flawed as the wsj makes it out to be. market movers also ...
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the whole point of index funds is that they dont pick and choose they just give broad exposure to the market as a whole. market movers are etfssquared worth a look thestreet.com the launch of a 13030 etn.a indexuniverse.com tech is still subject to the same economic laws as every other industry. tech investor enjoy your 10 return if you can get it. deal journal libor pricing is out of whack. w...
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the perpetuation of a corporation for sentimental purposes is not of itself utilitarian. going private distressed debt investors are keeping their powder dry for now. nytimes.com since the stock market is dominated by pricecentric investors those who understand value enjoy a significant edge. ft.com a tool to help you test your valuation assumptions on todays sp 500. designing better futures d...
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the continued fallout from the the moodys big mea culpa. ft alphaville ubs offloads a scad of mortgage assets at a discount and pays for the privilege. times online via alpha guy people are losing faith in financial assets for good reason. interfluidity the relationship between 3 month tbills and fed funds is becoming more normal. traders narrative the challenge of making oil production estima...
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moodys gave aaa ratings to billions of dollars of structured debt due to a coding error. ft alphaville also nakedshorts alea market movers why does the market perform historically on the first day of the month crossing wall street has the vix jumped the shark condor options there will soon by no shortage of frontier market etfs. basis pointing dont count on mr. pickens for any special insight ...
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some of them are proving popular feds direct loans to banks climb to record level funds provided through the socalled discount window for banks rose by 2.8 billion to a daily average of 14.4 billion in the week to may 14 the central bank said today in washington. separately the feds loans to wall street bond dealers rose by 75 million to 16.6 billion. some are not via alea 25 billion offered throu...
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... admits the bba. we have not run away or hidden from the need for reform or the need for review of serious issues in the u.k. financialservices industry british bankers association chief executive officer angela knight said at a hearing of a parliamentary committee in london today. the bba is set to announce the results of its most farreaching review of the way it sets the london interbank offe...
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the numbers vary a tad but the leveraged loan clearout continues. ft alphaville what happens when multiple overlapping dark pools of liquidity actually make trading harder wsj.com gold market timers have gone cold on the metal during this pullback. barrons.com a closer look at warren buffett was up to when berkshire hathaway sold a slew of stock index put options. financial crookery who said ...
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times are tough when an asset manager needs to raise capital in billion dollar chunks. wsj.com deal journal market movers inflationary psychology is back and the fed is worried. real time economics calculated risk the fed is running out of tbills. alea price increases are simply more noticeable more salient as psychologists would say than price decreases. nytimes.com also crossing wall stree...
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a subprime rmbs expected credit losses vs mark to market losses expected credit losses on aaa tranches zero mark to market losses so far on aaa tranches around 175 bn thanks susan kulakowskia alea bloga powerpoint presentationa this is good ira presents at the financial services roundtable 2008 spring meeting a click hereaaa to download a copy of our presentation the big risks a look at 20...
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please note todays edition of the linkfest is earlier and shorter than normal. high yield bonds have rallied of late. bespoke investment group crossing wall street the pursuit of fake alpha has created any number of problems. big picture a deadly pattern among some of the best traders is to channel achievement motivation into trading more. traderfeed why does barrons continue printing the citig...
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marswrigleyberkshire. wsj.com ft alphaville crossing wall street footnoted.org david einhorn is becoming a highprofile face for the hedge fund industry. wsj.com investors are pulling money from the big mutual fund families. naked capitalism expect more fundamentallymanaged 13030 strategies. all about alpha complacency and a slew of bullish fund managers. floyd norris big picture bringing big ...
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alea points to an account of the problems at ubs by a swiss financial journalist dirk schutz.......
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jimmy carter must stop meddling telegraph mr carter himself must share much of the blame for the state of palestinians now by ignoring their statehood aspirations when he negotiated camp david peace deal. his campaign for human rights in shahs iran ultimately resulted in the islamic revolution. tags jimmy carter middle east politics professional watches spring drive spacewalk by seiko nice. int...
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1a lets start out with my forecast.a ive given it before but it has become the conventional wisdom at the next fomc meeting at the end of april the fed will cut by 25 basis points.a they will make the usual noises about both inflation and economic weakness as well as difficulties in the financial system and comment that they have done a lot already it is time to wait to see the power flow.a the ...
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krugman sinquite de ce que la crise du crdit nest pas finie. pourtant les munitions de la fed ont t bien entames via alea et bayesian heresy.......
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