February 21st, 2012
Further further reading
For the commute home,
- Dow 13,000: pity party!
- All it takes is 30 good, decent, human-selected stocks…
- Bonus neurosis du jour, with Brian Moynihan.
- Charting Obama’s mini-momentum.
Bean to British pensioners: ‘Just wear it’
Charlie Bean of the Bank of England (deputy governor, monetary policy) has been brave enough to visit Glasgow, telling the Scottish Council for Development and Industry about his quantitative and the economic outlook.
US pent-up demand, charted
The second half of last year was puzzling to anyone trying to understand future trends in US consumption. Or at least it was to us.
Spending climbed more quickly than incomes, the savings rate decreased and consumer credit increased. Yet this decline in the savings rate happened against a backdrop of further declines in US home prices,
Rally Monkey gets sucked into the self-referential vortex of psychologically important thresholds
Cue the already-deflating* bubble in a) people pointing out that the Dow hit 13,000, then b) people who point out the irrelevance of the Dow’s crossing 13,000, followed by c) people who get annoyed at people who point out the irrelevance of the Dow’s crossing 13,000 because it’s so bleeding obvious,
PSI, the Greek details [updated]
Some of them, at least. From the Greek finance ministry, and our own thoughts follow the excerpt:
Co-Financing Agreement
Holders of the New Bonds will be entitled to the benefit of, and will be bound by,
StanChart camps out at the securitisation BISTRO – Part 2
In Part 1, FT Alphaville described what ‘synthetic securitisation’ deals done by Standard Chartered in the second half of 2011, looked like:
Now, let’s talk disclosure and what we know about the bigger picture of the latest generation of regulatory arbitrage trades.
StanChart camps out at the securitisation BISTRO – Part 1
A month ago, FT Alphaville took a closer look at a particular transaction that Barclays completed in order to decrease the amount of regulatory capital it was required to hold against a portfolio of loans.
Germany doesn’t want more of your eurozone goods
Remember how this eurozone mess largely boils down to a balance of payments problem? The peripherals have current account deficits and the northern countries have surpluses. As the eurozone is a semi-closed/unified economy,
Markets Live transcript 21 Feb 2012
Markets Live chat transcript for the chat ending at 12:26 on 21 Feb 2012. Participants in this chat were: Paul Murphy Bryce Elder/FT
PMHi there
PMHI there
PMWelcome
Further reading
Elsewhere on Tuesday,
- Greece’s bailout: mission improbable, not to mention unsustainable.
- And here’s what it’s really about.
- The IMF welcomes the “new eurozone understanding on Greece”.
- While Greeks may not be buying German.
Pink picks
Comment, analysis and other offerings from Tuesday’s FT,
Gideon Rachman: The drift towards war with Iran
The question of whether a war will break out over Iran’s nuclear programme has been around for so long that it is easy to become almost blasé,
Snap news
Breaking pre-market news on Tuesday,
- Albermarle & Bond pre-tax profit up 12 per cent – statement.
- Tullow finds some more hydrocarbons off West Africa – statement.
- Icap buys Singaporean shipbroker – statement.
Eurogroup maths
So the deal is in, and it combines bigger private sector “voluntary” haircuts (53.5 per cent of face value, as opposed to 50 per cent agreed in October) with the ECB passing the profits from its Greek bondholdings onto the national central banks,
‘Deal is done’
Reuters quotes two sources saying a deal is done with a nominal PSI haircut of 53.5 per cent, or more than the 70 per cent net present value previously discussed:
Another official confirmed that the financing would total 130 billion euros with the aim of reducing Greece’s debts from around 160 percent of GDP now to 121 percent by 2020,
[Updated] Get Greece (out)
Brutal, brutal, formal, excruciatingly-timed, leaked confirmation of what we we’ve known for ages – the Greek bailout 2.0 is Souvlaki in the sky…
First from Reuters, who had the toxic doc first (got that?):