Posts from Tuesday Oct 8 2013

The Closer

FURTHER FURTHER READING

- T-bill action is terrifying. Read more

Help to Buy, the banks, and the borrowers

It’s Help to Buy 2 launch day. Or, extend mortgages and warehouse them until the UK government supplies its guarantee for a portion of the money in January, launch day.

The scheme’s complete rules are here if you missed all 66 pages. Note the lending policy questionnaire.

So, reflecting on some HTB bits and pieces floating around on Tuesday… Read more

This is where all the money goes

We are reading the Office of Financial Research report on Asset Management and Financial Stability, which is both interesting and educational.

More to come, but having spent time looking for these numbers in the past, the two tables on where the money lies in the US and who looks after it are worth bringing to a wider audience on their own (click to enlarge). Read more

It’s all about the synergies, just you wait, French M&A edition

Reading that Alcatel-Lucent is to cut 10,000 jobs (with 900 axes to actually fall in France) we found ourselves humming the grand old Duke of York.

We have no comment on the merits of this latest bout of self-help, which actually aims to cut 15,000 jobs and add another 5,000 by 2015. But for context (charts by us, data from Bloomberg): Read more

US default stripshow

This piece of comparative calm is very definitely to be read in conjunction with Cardiff’s post on how the Treasury’s payment system (might) work.

It’s to do with the fact that there is no cross-default clause in US Treasuries. That means a missed payment on one bond would leave the other bonds unfazed, and equally usefully, if needed bonds can be split up into a ‘delayed component’ and a ‘normal component’ .

Pity the EM sovereign with such sloppy protections, eh? Read more

Markets Live: Tuesday, 8th October, 2013

Live markets commentary from FT.com 

The (early) Lunch Wrap

White House rejects demands to negotiate on shutdown || Alexander rejects MPs’ criticism of Help to Buy || CME takes on LME with aluminium contract || China and Japan warn US on default || National Grid warns on UK winter power supply || Alcatel-Lucent cuts 10,000 jobs worldwide || Argentina suffers setback in battle with ‘holdout’ creditors || Markets Read more

Walking dead update

The latest monthly performance figures for the hedge fund industry are out — and those funds still breathing had a good-ish month, up 1.6 per cent on average in September, according to HFR.

September performance was led by Equity Hedge strategies, with the HFRI Equity Hedge Index gaining +2.6 per cent, also the strongest month since January and bringing performance for the first three quarters of 2013 to a gain of +9.2 per cent, leading all hedge fund strategy indices.

But performance ain’t so hot as that put out by the industry’s legions of undead predecessors. Those cautious equity hedge funds have put up less than half the return for the S&P 500 this year. Read more

Oh the sunny uplands of Italian banking turnarounds. That’ll be €2.5bn please

Monte dei Paschi di Siena, Italy’s third largest, oldest, most loved and, ahem, only moderately state supported lender revealed its big survival plan on Monday.

More earnings, more capital, buy signals are bound to start flooding in this morning and… oh. Read more

Further reading

Elsewhere on Tuesday,

- Shutdown data withdrawal syndrome.

- Three days to cure.

- IMF board doubts over Greece – straight from May, 2010. Read more

The 6am London Cut

Markets: Equities were under pressure as it became increasingly difficult for markets in Asia-Pacific to ignore the US government shutdown, as hopes for a quick resolution to the budget impasse faded. But though losses were broad, they were not deep. (Financial TimesRead more