Trichet’s strong vigilance statement has the Euro falling again this morning.
Comments »Monthly Archives: June 2011
Trade Surplus Comes in Less Than Expected in China; Good Prospects for Global Growth
Given strong imports during a slowdown; it is now thought China can help to fuel global growth while withstanding a stronger currency and higher interest rates.
Comments »Gold Trades Unch Overnight, But Still Flirting With Highs
Oil Falls Overnight on Demand Slowing in the West and Interest Rate Hikes in the East
New Zealand Expected to Raise Interest Rates on Domestic Growth Prospects
Growth is bouncing back quicker than expected after they suffered the worse earthquake in nearly a century. Despite a recent interest rate cut; they are now expected to raise rates.
Comments »Toyota Estimates a 31% Drop in Earnings
Bank of Korea Raises Interest Rates by 0.25% to 3.25%
Details of the Bilderberg Meeting Leaked
NIKKEI Opens Higher
Japan up 1.3%, leading the way to a bullish Asian tonight.
Comments »China-Scams Continue to Lose Investors Money
Despite today’s melt up, the China-scam sector got killed.
No. Ticker % Change Industry
1 WH -18.27 Chinese Burritos
2 CHBT -14.52 Chinese Burritos
3 RENN -12.56 Chinese Burritos
4 ALN -11.70 Chinese Burritos
5 CCIH -10.29 Chinese Burritos
6 DATE -10.26 Chinese Burritos
7 CDII -8.82 Chinese Burritos
8 CGA -8.80 Chinese Burritos
9 CTFO -8.29 Chinese Burritos
10 CSKI -8.26 Chinese Burritos
11 SPU -6.50 Chinese Burritos
12 BONA -6.46 Chinese Burritos
13 SINA -6.40 Chinese Burritos
14 DANG -6.28 Chinese Burritos
15 TPI -6.25 Chinese Burritos
16 OSN -6.16 Chinese Burritos
17 NCTY -5.82 Chinese Burritos
18 YTEC -5.78 Chinese Burritos
19 SUTR -5.69 Chinese Burritos
20 CIS -5.56 Chinese Burritos
21 HOGS -5.55 Chinese Burritos
22 CHNG -5.46 Chinese Burritos
23 ZA -5.17 Chinese Burritos
24 RCON -5.04 Chinese Burritos
25 SYSW -5.00 Chinese Burritos
Bizarro: Fed Passes China as Largest Creditor to the US
As a result of its asset purchase program (QE2), the Federal Reserve at the end of 1Q held about 14% of total outstanding federal debt (debt held by the public). It is, therefore, now the single-largest creditor of the US government.
According to separate data from the Treasury Department, China is ranked second. It owned in late March Treasuries worth USD 1,145bn, which is slightly less than 12% of the total amount outstanding.
Comments »One Reason to Think Twice About Risk
The Federal Reserve is Now The Largest Owner of U.S. Debt
Government Math Wrong Again
Tanks {SIC} Monsanto
Turns out nature is smarter than you think…..and that does not include the minds at MON for the past 30 years…
Comments »Albert Edwards of Societe Genrale: “Without more QE his ice age theme, in which equity prices decline, and bond prices climb, is back on”
“After the obscene extremes of equity valuations seen during the 2000 bubble, we have entered a long valuation bear market which should end in extreme levels of cheapness consistent with an S&P around 400…”
Comments »Moody’s: Covenant-Lite investors experience differences with default
Comments »New York, June 08, 2011 — Creditors to companies with covenant-lite loans do not all face the same degree of risk, says a new report from Moody’s Investors Service. When companies with covenant-lite loans default, subordinated debt holders usually bear the brunt of the losses, cushioning holders of debt that is higher in a company’s capital structure.
There could be deeper losses to come, the report notes, because the erosion of debt cushion in the initial defaults of covenant-lite companies could expose investors to deeper losses in the event of subsequent defaults.
“Covenant-lite loans remove the ability of bank lenders to force a restructuring, allowing more time for management and private equity backers to seek non-bankruptcy options,” says David Keisman, a Moody’s Senior Vice President. “However, this may mean a loss of asset value as an earlier restructuring would have allowed investors to recover more money.”
Covenant-lite default rates have been below average when compared to similarly rated companies and to the historical average. Moody’s review of 104 covenant-lite defaulters shows a 7.8% default rate, compared to 10.35% for rated North American corporate issuers. The default rate for covenant-lite loans alone was 4.1%.
Nearly half of the covenant-defaults were distressed exchanges, which may be a result of the prevalence of private equity backers. Private equity owners were present in nearly 70% of the covenant-lite defaults the report examines. These equity holders often choose distressed exchanges as a means of influencing recovery rates and maintaining their stake in the issuer.
June 9 S&P ratings actions; JPM mortgage securities series lowered
Portuguese City of Cascais ‘BBB-‘ Rating Affirmed Owing To Sovereign Cap; Outlook Remains Negative 09-Jun-2011
12:36 EST
Affiliated Managers Group Inc. Outlook Revised To Stable From Negative; ‘BBB-‘ Rating Affirmed 09-Jun-2011
12:31 EST
Texas Gas Transmission Adds $115 Million To Senior Unsecured Note Issue; Ratings Unchanged 09-Jun-2011
12:26 EST
Ranking Affirmed As AVERAGE On Hatfield Philips As Servicer Of Commercial Loans In U.K. And Germany 09-Jun-2011
12:21 EST
Downstream Development Authority ‘B-‘ Corporate Credit Rating On CreditWatch Positive 09-Jun-2011
12:20 EST
IPC Systems Outlook Revised To Positive On Improved Operating Conditions 09-Jun-2011
11:54 EST
COMM 2006-C7 Ratings Lowered On 15 Classes; Six ‘AAA (sf)’ Ratings Affirmed 09-Jun-2011
11:53 EST
Savings Bank Life Insurance Co. of Massachusetts Assigned ‘A-‘ Ratings; Outlook Is Stable 09-Jun-2011
10:52 EST
Delmarva Power & Light’s $34.5 Million Revenue Refunding Bonds Upgraded; Now Collateralized With First Mortgage Bonds 09-Jun-2011
10:43 EST
Telebec LP and NorthernTel LP Ratings Withdrawn On Parent Bell Aliant Inc.’s Request 09-Jun-2011
10:22 EST
JPMorgan Chase Commercial Mortgage Securities 2006-LDP9 Ratings Lowered On 23 Classes; Six Ratings Affirmed 09-Jun-2011
10:08 EST
Outlook On New England Center For Children, MA ‘BB+’ Debt Rating Revised To Positive On Strong Operating Results 09-Jun-2011
10:00 EST
Ratings Affirmed On Bruckner CDO I’s Class A-1 Notes And Lowered On Class A2-1, A2-2, B, C-1, C-2, D-1, And D-2 Notes 09-Jun-2011
09:34 EST
Final Rating Assigned To Spanish ABS Transaction Bancaja Leasing 1’s Class A Notes 09-Jun-2011
08:45 EST
Thor Asset Purchase (Cayman) Ltd. Notes Rating Raised To ‘BBB’ Reflecting Improvement In DEWA’s Credit Quality 09-Jun-2011
07:04 EST
Outlook On U.K.-Based Exova Group Revised To Negative On Weaker Cash Flow Forecasts; ‘B’ Long-Term Rating Affirmed 09-Jun-2011
07:01 EST
J. Safra Holding AG Assigned ‘A-/A-2’ Ratings And Subsidiary Banque Safra-Luxembourg Rated ‘A/A-1’; Outlooks Negative 09-Jun-2011
06:40 EST
Provident Insurance Upgraded To ‘BBB’ Following FSA Approval Of Its Acquisition By French Covea Group; Outlook Stable 09-Jun-2011
06:35 EST
Ratings Lowered On Epic (Brodie)’s Class A, B, C, D, And F Synthetic CMBS Notes Due To Credit Deterioration 09-Jun-2011
06:15 EST
Finnish Mobile Handset Maker Nokia Cut To ‘BBB+/A-2’; On Watch Neg On Likely Weaker 2011 Operating Performance 09-Jun-2011
05:03 EST
Stena AB Outlook Revised To Negative On Persistently Weak Credit Ratios; ‘BB+’ Rating Affirmed 09-Jun-2011
04:57 EST
Franz Haniel Outlook Revised To Stable On Stabilized Leverage, Subsidiaries’ Stronger Performance; ‘BBB-/A-3’ Affirmed 09-Jun-2011
04:54 EST
S&PCORRECT: GITI Tire ‘B’ Rating Placed On CreditWatch Negative On Heightened Refinancing Risk 09-Jun-2011
04:14 EST
German Chemical Distributor Brenntag Upgraded To ‘BBB-‘ On Improved Performance And Credit Profile; Outlook Stable 09-Jun-2011
03:51 EST
Ranhill Bhd. ‘B-‘ Rating Affirmed, Removed From Watch, And Then Withdrawn At The Company’s Request 09-Jun-2011
02:30 EST
Outlook On Japan Securities Finance Revised To Stable; Ratings Affirmed 09-Jun-2011
01:47 EST
Japan International Cooperation Agency’s Zaito Agency Bonds Rated ‘AA-‘ 09-Jun-2011
01:32 EST
Household Wealth Grew in Q2 and Household Debt Contracted
Wealth up $943 billion vs $2.4 trillion in the previous quarter. Household debt fell by 2%.
Comments »Shiller: “My gut feeling is we might see a continuation of the decline” in home prices
A potential double dip recession looms, and home prices could decline significantly from here…..
Comments »
