Tag: CDS

C.M.O. 7.13.2009

Credit Market Overview July 13, 2009 The Massive Ordnance Air Blast bomb known technically as GBU-43/B and affectionately as the Mother Of All Bombs is a 30 foot, 22,600lb honey that actually explodes about 3 feet above the ground and…

C.M.O. 7.10.2009

Credit Market Overview July 10, 2009 On March 9th of this year investment grade spreads on the CDX index peaked at 262bs and the high yield index peaked at 1925bps.  The S&P had its lowest close on this very same…

C.M.O. 7.9.2009

Credit Market Overview July 9, 2009 They say it’s not what you have but how you use it. Alcoa (AA) has the aluminum, and reported 2Q09 results last night and Boeing (BA) uses aluminum to make planes and they’ve been…

C.M.O. 7.8.2009

Credit Market Overview July 8, 2009 A list of the ironies that have associated economic events for the last two years and the market place’s reaction to them could fill an encyclopedia no less this humble page.  Not the least…

C.M.O. 7.6.2009

Credit Market Overview July 6, 2009 Since August of 2007, when BNP Paribas froze withdrawals in three investment funds because of losses on CDO’s constructed with subprime mortgages and the world realized that if an institution with no clear link…

C.M.O. 7.2.2009

Credit Market Overview July 2, 2009 It took me a while to figure out why the market did not react negatively to the additional 79,000 job cuts the ADP Employment Change report revealed yesterday, missing the forecast by a full…

C.M.O. 7.1.2009

Credit Market Overview July 1, 2009 If sixty is the new forty and as the hedge funds were saying last year, flat is the new up, then watching the market yesterday can only lead one to believe that breaking windows…

C.M.O. 6.30.2009

Credit Market Overview June 30, 2009 One of the truly fascinating things about the market and by “market” I mean the sum of the equity, fixed income and commodity markets, is that at any given point in time a set…

C.M.O. 6.26.2009

Credit Market Overview June 26, 2009 The actions of the Federal Reserve under Alan Greenspan are considered to be a leading cause of that which has come crashing down all around us lo’ these past two years.  Alan continues to…

C.M.O. 6.24.2009

Credit Market Overview June 24, 2009 Commercial Mortgage Backed Security (CMBS) delinquency rates are up by a factor of 3 in the last six months hitting 2.7% in May, which if you’re keeping score, is the highest level in a…