Diary of a Financier

Bookshelf Update: Top Newsstuffs (Weeks of November 7 & 14)

In Bookshelf on Sun 20 Nov 2011 at 17:30

I’m surprised at how much media I’ve accumulated for my Bookshelf over these past weeks, considering how little progressive news has actually hit the wires.  Here it is, this week’s Top Newsstuffs:

Data tables for Eurozone countries.

 
Since 2007, corporations have added $358B in cash v. $428B in debt.

 
Fed raises margin requirements for MBS “dollar rolls” from zero to 2.5%. It’s an uncharacteristic move from Bernanke’s Fed to limit their Primary Dealer counterparty risk in the wake of MF Global, but…
 
Only One Solution For Europe, Everyone Knows What It Is, And If It Doesn’t Happen, There Will Be A Collapse | Joe Weisenthal

Highlights Citi’s William Buiter, who says that although treaty forbids ECB to buy sovereign bonds in the primary market, it can purchase in secondary market.

 
Canada pipeline firms sprint to end U.S. oil glut | Reuters

Glut of oil in US Midwest due to oversupply flowing down from North. Pipelines are scrambling to ship this excess to Gulf Coast and close the gap between WTI & Brent Crude.

 
Happy Trails | NY Times

Homage to Mad River Glen ski area.

 
However, institutional arrangements and infrastructure could not process sub-zero interest rates.
 
Daniel Kahneman (& Amos Tversky) bring behavioral psychology to economics. On the ways human judgment may be distorted when making decisions in conditions of uncertainty.
 
Merkel calls for amendments to treaties and acceleration of European integration.

 
FFB’s busy month | Bruce Krasting

Everyone from the Post Office, to Nissan & Ford, to Beacon Power borrowing from the government at rates lower than Treasuries.

 
Controversy between politicians and enviromentalists about the TransCanada pipeline to the US Gulf that would displace 50% of US imports.
 
A regression analysis find that cheap PE ratios have no power to predict returns on a 3 & 10-year basis.
 
Assets moved to Level 2 since ‘insufficient market volume’ made price discover difficult, resulting in substantial write-ups of PIIGS debt.

 

–Romeo

 
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  1. […] Dispelling the myth of corporate cash on the sidelines | Citigroup All the talk of a surplus in corporate cash available to enhance shareholder value & buffer balance sheets is wrong, and market prices seem to have mispriced the credit risk of leverage: 1. The top 20 companies in the R3k (RAY) account for 40% of corporate cash & almost all of the growth in balances 2. Net debt is growing faster than EBITDA 3. Cash/Total Debt continues to rapidly plunge 4. Despite low Commercial Paper issuance, companies haven’t increased the maturity composition of their outstanding debt (QE has caused a steep yield curve, which lures issuers to shorter tenors) [Plus, so much of the cash in tied up abroad to avoid repatriation taxes. Previously: Jim Bianco & the AP.] […]

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