Posts from Monday Mar 4 2013

“Repent, Argentina!” said the ticktock judges (part two)

Continuing our take on the arguments at last week’s big hearing in NML v Argentina…

Last time we looked at what Argentina said; this part will cover its restructured bondholders; Bank of New York, their trustee; and the holdouts.

Though Argentina’s still hogging the limelightRead more

The Closer


FT markets round-up: “Stocks on Wall Street staged a late rebound, pushing blue chip stocks to their highest close since 2007, as investors saw value in growth assets after recent declines. Earlier in the day, a sharp fall for Chinese stocks triggered selling across global bourses after attempts by Beijing to cool the country’s property market raised fears of another headwind for global growth. The dollar index ended the session slightly lower after earlier hovering near a six-month high and core fixed income prices were in retreat, pushing 10-year Treasury and Bund yields up 3 basis points to 1.87 per cent and 1bp higher to 1.42 per cent, respectively. Gold fell $3 to traded at $1,572 an ounce. The FTSE All-World equity index erased an earlier loss to finish little changed on the day as the FTSE Eurofirst 300 ended only a fraction lower. The S&P 500 shrugged off most of its opening-bell slide to rise 0.5 per cent at 1,525.” (Financial Times) Read more

Janet Yellen and the Fed’s labour market dashboard

This post by the FT’s US economics editor Robin Harding is cross-published from FT Money Supply.

Today’s speech by Janet Yellen is a mirror of Ben Bernanke last week when it comes to the costs and risks of continued asset purchases. “At this stage, I do not see any [risks] that would cause me to advocate a curtailment of our purchase program,” she says. Read more

Damn straight I’m a college grad! Paper or plastic?

It’s the kind of motto one sees on a T-shirt in a shop in the touristy part of town, but over the last few years it’s had a particularly painful ring of truth to it. Students in America are staying in education longer and are struggling to obtain full, gainful employment once they leave. This, combined with the rising costs of tuition, has seen the outstanding balance of student debt go past the one trillion mark and delinquency rates increase.

Talk is in the air of a bubble, as pundits point to student loans themselves and to the securities that are built from them. But is what’s going on “a bubble” in the usual sense? And more importantly, what does this say about college education in America? Read more

Well, if this isn’t a bullish sign for securitisation…

Via Bloomberg:

The American Securitization Forum, the leading trade association for the securitization industry, fell into turmoil last week when most of the board resigned in a dispute with the group’s executive director over governance and bonuses, according to six people familiar with the matter. … Read more

Trading in America’s students expands

Alright, we put our hands up, we’ve been reading Zero Hedge.

His Anonymous Handsome Midriffness is busy being his usual self, and on this topic he’s made us go hmmm about a certain Wall Street Journal story concerning SecondMarket Holdings, Inc. The platform is launching a service that will allow lenders to sell exposure in student loans to (accredited) investors. The WSJ describes it thus (emphasis ours): Read more

The M&A pickup

For those who have a life are less interested in messy details, the explanation for the dealmaking optimism of recent months goes something like this:

— Since roughly last summer (OMT), tail risks are perceived to be down. And despite Washington’s reverse midas touch, the private sector has shown signs of staying resilient, including a streak of a spookily consistent employment reports. Read more

Having toilet-papered a tree, students move on to trash ABS market

Evidently it’s time to get very excited about the risks posed by increasing student debt in the US, particularly as rates of delinquency are on the rise. Pretty graphs first, details follow…

Holy household debt, Batman! Student loan balances have surpassed credit card use and are still growing! Read more

A vote on toxicity

Click above to see the survey/competition being run by a German Green party MEP, Sven Giegold. Read more

The pollution constraint on China’s future growth

The 12th National People’s Congress convenes tomorrow in Beijing and, by the time it ends, Xi Jinping will be named head of state and Li Keqiang will be appointed premier.

There’s naturally much speculation around the signals for policy direction that might emerge. Although the events are more akin to formalities than actual decision-making fora, they are being watched closely for clues about the new leadership’s appetite for reforms — which may be revealed through bureaucratic reshuffles, as the FT’s Jamil Anderlini explainsRead more

Markets Live: Monday, 4th March, 2013

Live markets commentary from 

The (early) Lunch Wrap

HSBC lifts dividend 50% || Kuroda says ‘will do whatever we can’ at BoJ || Nikkei rises, yen little changed || New Chinese property tightening announced || New Look to open shops in China || Swiss vote for pay curbs || Steinmetz launches $2bn distressed European property fund || New homes bonus ‘a flop’ || No end in sight for Italian gridlock  Read more

An FLS fail?

The question mark in the header is just so as to (reluctantly) give the Bank of England the benefit of the doubt.

Here are the latest stats on the Funding for Lending Scheme, which was supposed to pump £100bn into households and businesses in the UK. Six months in, £13.8bn has been drawn down by British banks, £9.5bn of that coming in the final quarter of 2012. Read more

Has the time for BoJ talk passed?

BoJ governor nominee Haruhiko Kuroda has already been fairly clear that he wants to expand the asset-purchasing programme, and buy longer-term bonds. So how significant are his Draghi-sounding “whatever we can do” comments, really? Read more

Further reading

Elsewhere on Monday,

– Opaque finance, again, and solutions.

– Afghanistan’s mobile money revolution.

– Will biotechnology provide food security? Read more

The 6am Cut London

Asian shares mostly lower || Kuroda says ‘will do whatever we can’ at BoJ || Nikkei rises, yen little changed || New Chinese property tightening announced || New Look to open shops in China || Swiss vote for pay curbs || Steinmetz launches $2bn distressed European property fund || New homes bonus ‘a flop’ || No end in sight for Italian gridlock Read more