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LATEST COMMENTS, IDEAS & STRATEGIES |
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| | ONEOK INC: ONE MORE SHORT, OK? |
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Trading Ideas (11/19/2008)
The hope of TARP funds providing a floor to the subprime market disappeared this week and hedge fund liquidations continued en masse. On the back of such downbeat news, the credit market is taking a beating ...
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| | CDR COUNTERPARTY RISK INDEX @ MIDDAY NOV 19, 2008 |
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Comments (11/19/2008)
The CRI jumped today with fourteen members trading wider (more risky). Citigroup showed the greatest deterioration on news of hedge fund closures and SIV takeovers. After showing early strength, Morgan ...
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| | CAPITAL STRUCTURE: BALANCED ON A KNIFE'S EDGE |
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Strategies (11/18/2008)
The credit and equity markets are gloomy places these days. With spreading bailout talk dominating political discussion, both markets continued to deteriorate over the past week although credit’s relative ...
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| | CDR COUNTERPARTY RISK INDEX @ MIDDAY NOV 18, 2008 |
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Comments (11/18/2008)
The CRI is holding steady today with eight members trading wider (more risky) and six trading tighter. All European names deteriorated today while six US names improved and only one (Citigroup) is wider. ...
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| | CLIENT SENTIMENT |
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Comments (11/18/2008)
During this week we will be meeting with many of our clients, gathering insight into client sentiment, directional biases, macroeconomic views, and feedback on our services. We will publish a summary of this ...
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| | DIRECTIONAL CREDIT: EDGING WIDER |
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Strategies (11/17/2008)
This week we continue our weekly Directional Credit Strategy report with coverage of the Energy, Utilities, Technology, and Telecom sectors from the Investment Grade market. We recommend selling protection on ...
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| | CDR COUNTERPARTY RISK INDEX @ MIDDAY NOV 17, 2008 |
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Comments (11/17/2008)
The CRI headed wider today with ten names trading wider (more risky) and three names trading tighter. On a percentage basis, UBS is the weakest performer, deteriorating by over six ...
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| | US CDS MARKET CLOSE: WEEKLY UPDATE |
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Comments (11/14/2008)
Spreads were considerably wider in the US on the week with IG outperforming HY in price and spread terms as equities significantly underperformed credit in the face of further disappointing economic and ...
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| | US CDS MARKET CLOSE: WEAK INTO WEEKEND |
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Comments (11/14/2008)
Spreads were wider across the board today in the US with sentiment weak as wideners outpaced tighteners by almost six-to-one. Low beta underperformed higher beta credits with CIT, GECC, and AIG (the Haves) ...
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| | TRANCHES: A SHIFT BACK |
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Strategies (11/14/2008)
S&P downgraded 565 corporate synthetic tranches yesterday due to the Lehman and WaMu defaults. Because synthetic CDO managers are well versed in using the rating agency’s models this should not come as any ...
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| | CAPITAL STRUCTURE: GRINDING FORWARD |
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Strategies (11/14/2008)
The week is ending about where we began with our CSA universe of North American CDS spreads slightly wider and credit remaining rich to equity. Of course, equity investors (and CDX traders too) have a very ...
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| | CDR COUNTERPARTY RISK INDEX @ MIDDAY NOV 14, 2008 |
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Comments (11/14/2008)
The CRI is basically unchanged today with ten members trading tighter (less risky) and four members trading wider. All European names are tighter and US names are split. ...
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| | CDS CLEARING HOUSE IMPLICATIONS |
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Comments (11/14/2008)
We were asked by Bloomberg TV to comment on the prospects for the CDS Clearing House (given today's headlines) and how it will impact CDS markets and traders. Below are the notes we used to the ...
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| | US CDS MARKET CLOSE: CREDIT HAVES AND HAVE-NOTS |
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Comments (11/13/2008)
Spreads were mixed in the US today as a violent swing in stocks and spreads during the afternoon seemed focused very much in the indices (rather than single-names) as it lacked any real catalyst. IG ...
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| | HASBRO INC: COLLECT $200 |
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Trading Ideas (11/13/2008)
Despite spread widening, primary issuance in IG markets has improved recently and in the spirit of good news, we are inclined to recommend an outright long on a holiday special - Hasbro. Because the current ...
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| | THE WESTERN UNION COMPANY: HIGH WIRE ACT, PART 2 |
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Trading Ideas (11/13/2008)
Our Western Union trade made a quick profit last month by selling CDS protection and buying equity puts. After WU’s earnings announcement on October 21, the company’s stock sank quickly. Since then, WU ...
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| | CDR COUNTERPARTY RISK INDEX @ MIDDAY NOV 13, 2008 |
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Comments (11/13/2008)
The CRI improved slightly today with eight members trading tighter (less risky) and six member trading wider. All US names are tighter but most European names are wider or unchanged. ...
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| | US CDS MARKET CLOSE: THE PAULSON PLUMMET |
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Comments (11/12/2008)
Spreads in the US were considerably wider today as overnight weakness in Europe and Asia was confirmed by Best Buy's outlook and Paulson's new-new-old-plan. IG11 widened the most on the day since 10/22 as HY ...
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| | CAPITAL STRUCTURE: STATE OF THE UNION |
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Strategies (11/12/2008)
Another week, another massive swing in the equity markets. With equity too low and implied vol too high compared to CDS levels, we find short credit/long equity relative value trades to be the most plentiful. ...
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