RSS feedcredit
’Tarp exposes US to $23,700bn risk, watchdog says
Neil Barofsky, special inspector-general for the troubled asset relief programme, said that the various US schemes to shore up banks and restart lending exposed federal agencies to a risk of $23,700bn – a vast estimate that was immediately dismissed by the Treasury,
Is Goldman Sachs a giant credit portfolio?
Jim Bianco has a fascinating post at The Big Picture, asking what is Goldman Sachs?
His answer: one big credit portfolio.
And he has some convincing charts, including this one, showing the commercial bank’s (née investment) stock price against the option-adjusted spread of an investment grade CDS index.
Not your average crisis in corporate credit
From Goldman Sachs.
Lex: China loan growth
China is awash with more credit than it knows what to do with, but banks may be storing up trouble.
China’s banking regulator, however, is increasingly fretful, noting on Tuesday that rampant credit growth “poses risks”
Equities still a bubble and equity guys out of this world, BNP Paribas says
Yes, really. In a note issued late on Thursday, the credit analysts at BNP Paribas argued that “despite a close to 5o per cent drop in equity valuations, equities look not only rich but are significantly mispriced and are a bubble waiting to be pricked.”
US credit markets appear to thaw, but fundamentals weak
Last week appears to have been a good one for US credit markets even if data suggest all is far from well in the financial world, according to a slew of recent research notes.
Analysts at Moody’s Capital Markets Research Group (CMRG) described this situation as a “mud thaw”:
Liquidising the credit rally
The recent stabilisation in the Institute for Supply Management Index (ISM) has been hailed by some as justification for a rally in corporate credit.
Indeed, there’s historical precedence for that. Over the past 40 years,
HSBC: underweight equities and overweight credit
Corporate credit might be the the pachydermic herd in the room, but it’s a better buy than equities, according to HSBC’s Richard Cookson.
In a note published on Friday, Mr Cookson argues that “it’s unclear why we’d be anything other than underweight equities and overweight credit.”