Posts from Friday Jul 13 2012

The Weekender

| Jul 13 2012 22:12 | Comment |

This week on FT Alphaville,

- The ECB’s zero deposit rate still loomed over markets from the week before. Scary. Read more

Student Loan In-securities

| Jul 13 2012 18:10 | Comment |

As the topic of student loans has been gaining momentum this election year, it might be worth taking a moment to examine some not-so-rosy points about the whole business.

First some background. In the world of US student loans, Uncle Sam reigns supreme. A recent research note by Credit Suisse noted that since the abolition of the Federal Family Education Loan Program (FFELP) in 2010, the government has become owner of an estimated 88% of total outstanding student debt. Read more

Libor, a New York Fed doc dump

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Jul 13 2012 16:31 | Comment |

Click pic for the full list of documents. Some are official reports on Libor, while others  - such as the excerpt below – are the NY Fed talking to Barclays traders…

FR: Hmm. Read more

The pictorial Funding for Lending

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Jul 13 2012 15:48 | Comment |

 Read more

The Bank gets proactive…

Paul Murphy is the founding editor of FT Alphaville.

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| Jul 13 2012 14:51 | Comment |

Has the Bank of England been reading Chris Giles?

With the press looking to work up a decent Fed angle to the Libor furore, Britain’s central bank has just gone ahead and published correspondence between Sir Mervyn King and Tim Geithner, then president of the NY Fed, along with Paul Tucker’s related correspondence with the BBA. Read more

‘CIO Risk Management was ineffective in dealing with Synthetic Credit Portfolio’

David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.

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| Jul 13 2012 13:03 | Comment |

It’s JPM’s CIO Task Force update and it’s a fun read. Click through the pic for the full document and then get on to ML:

 Read more

US Markets Live transcript 13 Jul 2012

Cardiff writes mostly about US macroeconomic issues, with daily excursions into other topics about which he claim no expertise. Before Alphaville, Cardiff spent a little more than two years as a reporter at Dow Jones Financial News covering investment banking, asset management, and private equity. Along the way he has written freelance pieces on a variety of other topics from behavioural psychology to Muay Thai, the latter also being a personal interest that involves frequently getting kicked in the shins (and torso, and head).

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| Jul 13 2012 12:22 | Comment |
This is a Markets Live transcript. Read more

Live markets commentary from FT.com 

US Markets Live, Jamie beaches the Whale special edition

| Jul 13 2012 12:08 | Comment |

An earnings Q&A which the entire finance world will be tuned into, $4.4bn of dollars in losses, a Q1 restatement — and a chance to watch Jamie Dimon get grilled yet again.

A clarion call for a special edition of Markets Live, we think… Read more

JPMorgan Whale loss $4.4bn, *restates* Q1

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Jul 13 2012 11:59 | Comment |

*JPM $4.4B PRETAX LOSS FROM CIO TRADING LOSS

*JPMORGAN 2Q EPS EX-DVA $1.09, EX ALL GAINS 67C, EST. 76C Read more

China doubles down on imbalance

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Jul 13 2012 11:20 | Comment |

Here’s a quick round-up of the data out of China on Friday:

- Q2 GDP growth was in line forecasts: Reuters‘ poll had 7.6 per cent while Bloomberg‘s had 7.7 per cent. Read more

Markets Live transcript 13 Jul 2012

| Jul 13 2012 11:00 | Comment |
This is a Markets Live transcript. Read more

Live markets commentary from FT.com 

Nama and El Nama

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Jul 13 2012 10:50 | Comment |

How far will Spain’s bad bank be like Ireland’s?

There’s a superficially similar structure. Read more

The (early) Lunch Wrap

David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.

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| Jul 13 2012 10:38 | Comment |

Good morning New York…

FT ALPHAVILLE Read more

“We need to get to the bottom of this scandal and I’m therefore setting up my own inquiry into this dreadful mess”.

Paul Murphy is the founding editor of FT Alphaville.

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| Jul 13 2012 10:03 | Comment |

So says John Mann, the fiery MP for Bassetlaw who’s been hurling the invective at Barclays and Bob Diamond of late.

He’s now fuming that he and fellow member of the awkward squad Andrea Leadsom have reportedly been left off the grand British parliamentary Banking Enquiry being led by treasury select committee head Andrew Tyrie. Read more

Concessional in Spain

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Jul 13 2012 08:45 | Comment |

Lend at low rates, for a long term.

It’s one way Spain’s official creditors could believably renounce seniority in the bailout. Concessional loans would make it easier for Spain to refinance its debt stock as a whole, improving bondholder recovery, while recapitalising its banks. Arguably. Read more

Further reading

David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.

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| Jul 13 2012 08:25 | Comment |

Elsewhere on Friday,

- Is China doing worse than headline GDP growth suggests? Read more

The 6am Cut London

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Jul 13 2012 05:38 | Comment |

China’s GDP growth fell to 7.6% in Q2, its slowest rate since early 2009. The number was in line with analysts’ expectations, however loan data for June was better than expected. (Financial Times) Further complicating the picture was an increase in fixed-asset investment growth, while electricity output growth fell sharply. (Bloomberg)

Asian shares rose on the Chinese loan data, breaking a six-day losing streak. Hong Kong’s Hang Seng index and China’s Shanghai Composite index each advanced 0.6%. (Financial Times) Read more

Moody’s cuts Italy two notches

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Jul 13 2012 01:17 | Comment |

Moody’s left Italian sovereign debt two notches above junk on Friday, after downgrading it from A3 to Baa2.

The rating agency cited “signs of an eroding non-domestic investor base” for Italy’s bonds. Read more