March, 2010
What do Ponzi operators spend their money on?
Well, in the case of Francois Durmaz and Robert Pribilski and their USA Retirement Management Services operation…
From at least January 2005 through at least December 2009, Durmaz and Pribilski used USARMS’ investors’ funds to purchase,
Streaky’s guilty, but will he go down?
The case against Malcolm Calvert – that he indulged in the crime of buying shares while in the possession of inside information – has been followed with keen interest across the City of London.
Not least because Calvert (Streaky to his friends) is a former Cazenove partner.
Beijing: forever blowing bubbles
Breaking news — Chinese property prices just got a little more inflated.
From Bloomberg (emphasis ours):
China’s property prices rose at the fastest pace in almost two years in February, adding urgency to the government’s efforts to rein in speculation and increase the amount of affordable housing.
Northern Crock: No news is good news
Or so say RBS analysts, in their note on the Crock’s loss-cutting results out on Wednesday (emphasis ours):
No new information that would move the cash bond prices here which in our view is good news.
Pic du jour, China/US balance of power
Vice-premier Wang Qishan and that flunky Geithner. H/T John Kemp
There’s always Schadenfreude, Greece
At least now, Athens probably won’t quite get to the point of having to fend off rumours that it’s about to go cap in hand to the IMF. Unlike, say, its old enemy in Ankara. As Reuters reported on Wednesday:
DM is the new EM and the contagion shoe is on the other foot
“DM is the new EM”, proclaims Morgan Stanley strategist Gerard Minack in a client note on Wednesday. Indeed, amid Greek debt woes and fears of contagion, there has been a steady and pronounced global shift in investor concerns away from the stability of emerging market debt to – yes,
Markets Live transcript 10 Mar 2010
Markets Live chat transcript for the chat ending at 12:12 on 10 Mar 2010. Participants in this chat were: Neil Hume, FT Bryce Elder
NHGood morning
NHand welcome to Markets Live
Prodi-ing Greece along: ‘it’s all wonderful’
We know that fears stemming from Greece’s debt crisis are receding somewhat amid talk of concrete EU support for Athens and a narrowing of spreads on Greek government bonds.
We also know that for every growling bear in the worlds of finance,
Rabobank’s new, non-regulatory capital
Contingent convertibles? Boring!
Mutual ordinary deferred shares? Über-boring!
Meet the new, more mysterious, hybrid capital. Instead of converting into equity when a certain Tier 1 level is breached (à la Lloyds’ CoCos),
Further reading
Elsewhere on Wednesday,
- The mother of all carry trades – again?
- More on that mutual fund spendathon.
- Bears still reign in important places.
- CDS in Europe: stop blaming the ref.
- The EMF:
Pink picks
Comment, analysis and other offerings from Wednesday’s FT,
Martin Wolf: Germany’s eurozone nightmare
Ever since the federal republic was founded, Germany has had two over-riding strategic objectives:
Snap news
Breaking pre-market news on Wednesday,
Glencore says net profits fell 43 per cent in 2009 – statement.
- Gulf Keystone says partner in Kurdistan in default, to pay $40m to regional government – statement.
Russian (currency) might
Here’s the rouble versus the euro, courtesy of Reuters:
The Russian currency has appreciated by about 10 per cent over the past three months. Received wisdom puts this down to the rising price of crude,
Repeat after me: CDS are not insurance
Alright, hold it.
In the midst of the ongoing and increasingly heated debate about credit default swaps, be they naked, sovereign or Sharia compliant, one fundamental fact has been overlooked: these instruments are not insurance.
Due to popular demand…
We are expanding our popular 6am Cut news briefing service, introducing new early morning emails for our readers in the US and across Asia.
From Wednesday, subscribers to this free service will receive three emails a day,
S&P on GMAC: another executive bites the dust? Not surprised.
Standard & Poor’s statement regarding the departure of GMAC’s chief financial officer was a refreshingly forthright portrait of the challenges facing the much-bailed-out company.
We quote, emphasis ours:
A tale of two Athens
What’s that you say, Greece? You’re issuing more bonds? Oh wait, no…
We’re confused. Earlier today the WSJ quoted officials saying they are planning to issue a new series of bonds. But, then the Greek debt agency denied it.
CDS report: Sovereign spreads lost ground
The rally in credit and equity markets lost momentum today amid a dearth of news, either positive or negative. The Markit iTraxx Europe index was over 1bp wider at 75bp, while the Markit iTraxx HiVol was trading around 111bp,
The EMF: run it past us again, please?
We’ve already got in the pop band references, so let’s be serious for a moment. FT Alphaville is still scratching its head over how the proposed European Monetary Fund would work.
We’re not alone. Angela Merkel has already urged caution on the Fund,
Lunch Wrap
On FT Alphaville Tuesday morning,
- The Great British Krona falls down the trade gap.
- UK banks: ratings propped up by government…
- … and worries about balance sheets.
- Tracing China’s Treasury positions.
DE Shaw and other hedgies look to Asia
While hedge funds have been virtually stampeding out of Japan for the last few years, DE Shaw, the $24bn hedge fund founded by computer scientist David Shaw, is set to open offices in Tokyo as well as Shanghai,