Archive for August, 2011

Maybe we should call them the PEEGS

Wednesday, August 10th, 2011

Ever since the U.S. saw its debt downgraded to AA+ by S & P, market participants seem to have a metaphorical burr under the saddle over the fact that France retained its AAA rating–and had it reaffirmed. Most consider France to be on shakier ground. Credit Default Swaps seem to reflect the S & P view, although French 1-year CDSs are rising rapidly, as shown below. It seems there are rumors some of its banks may hold some toxic debt.

 

If this keeps up we might need to add an F to PIIGS, but PIFIGS doesn’t make much sense. Maybe we could just put a French accent on PIIGS and call them all PEEGS.

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Oh, no, a big bank’s denying rumors…

Wednesday, August 10th, 2011

This is eerily reminiscent of what Bear Stearns and Lehman Bros. did before they blew up:

Exactly what rumors are they categorically denying? ‘Not sure, but the cost of insuring against a SocGen default is up by 10% today. I’m guessing the market’s speculating they own some toxic Italian or Spanish debt.

Still, what happened to Bear Stearns’ CDSs makes the chart above look positively tame:

Here’s a comparison of the action.

 

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889 million shares summed up in 33 words

Wednesday, August 10th, 2011

According to the Wall Street Journal, as of 9:55 this morning, all 889 million shares traded on the New York Stock Exchange did so for the following reason:

There you have it, all neatly packaged up.

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Index Futures

Wednesday, August 10th, 2011

In following the recent trend of a global sell-off, US equity futures are down once more.

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Gee, I guess the market didn’t like what the Fed said

Tuesday, August 9th, 2011

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