Diary of a Financier

Bookshelf Update: Top Newsstuffs (April 2-8)

In Bookshelf on Sun 8 Apr 2012 at 08:13

Happy Easter!


Italy’s Latest Parabolic Curve | ZeroHedge
Italian & Spanish borrowing from ECB still increasing at breakneck pace: Italy’s support rose from €195 billion to €270 billion in March (new record).

Earnings without Apple | Business Insider
Without AAPL, SPX 1q2011 EPS would have only grown 2.7% vs. 7.8% inclusive (y/y).

On FX | Bruce Krasting
EURCHF flash-crashed under SNB’s 1.20 peg on Thursday morning (9:46am local time). Rumor of computer algorithm error; SNB bought some EUR in the 1 minute that it lasted.

Egan Jones Cuts US Credit Rating from AA+ to AA-, Outlook Negative | Clusterstock
Cite lack of progress cutting the federal debt: “When debt-to-GDP exceeds 100%, a country’s financial flexibility becomes increasingly strained… For the first time since World War II, U.S. debt exceeds 100%.”

Rumor: JPMorgan Trader Holding Epic Position in Credit Default Swaps | Business Insider
Bruno Michel Iksil (AKA “The London Whale”) has amassed a proprietary, short CDS index position so large that it’s distorting corporate bond prices. Now, hedge funds are circling by taking the other side of his trade.

Second Foreclosure Tsunami Is Coming, Goodbye “Housing Bottom” | ZeroHedge
Bank foreclosures will resume in wake of robosigning moratorium. Chart of 9 million unit shadow housing inventory.

China Accelerates Market Liberalization as QFII Quota Doubles | Bloomberg
Quota for Foreign Institutional Investors increased from $30B to $80B in yuan holdings, with a similar increase for offshore investors.

Effects of Global Easing Illustrated: MSCI World Index v. Central Bank Liquidity Injections | ZeroHedge

Value Of European Currencies In A Post-Breakup Scenario | Nomura
The Wolfson Economic Prize offered a lot of money to the contributor with the best idea for a breakup of the Eurozone. Nomura’s Jens Nordvig and Nick Firoozye tried valuing the FX.

Greek Foreign-Bond Restructuring Rejected in Talks Last Week | Bloomberg
Greece is on a roadshow trying to get creditors to approve restructuring of English-law bonds. So far, 20 out of 36 meetings have ($15.3B out of $26.8B) agreed to restructure by May 15 deadline.

United Nations paper on the structural changes of markets from HFT | Peter Brandt
UN: “At daily-frequency, the distribution of the correlations between commodities and stock indices has been increasing almost steadily since 2003-2004. At higher-than-daily frequency, prior to 2008, there is no strong or long-lasting deviation from zero between the commodity and the equity markets. Afterwards, a structural break occurs in the data. During the second and third quarters of 2008, the correlations depart from zero and move temporarily to negative territories, and then move in late September, early October 2008 to positive levels, where they have remained almost constant since.”

US Fiscal Timebomb Will Explode in 2013 | New York Times
4q2012 perfect storm: debt ceiling hike, Bush tax cuts expire & government spending cuts. Estimated cost is 3% of GDP, and Republicans hang their hopes on deferring to a new President.


  1. […] where foreign banks are permitted to expand local operations [See also & Previously: China accelerates market liberalization by doubling QFII] #Bullish […]


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