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Carson Block, the founder of Muddy Waters Research, believes that China’s banks hold more toxic assets than Western peers did ahead of the 2008 financial crash. He is listened to by institutional investors, regulators and politicians but he rarely speaks publicly. Last week, his analysis of Standard Chartered’s exposure to China caused a tremble in its share price and its backers to leap to the bank’s defence. Carson Block has broken [...] by John Aziz, Azizonomics: One of the key features of the post-2008 gold boom was the notion that inflation was soon about to take off due to Bernanke’s money printing. But so far — by the most-complete inflation measure, MIT’s Billion Prices Project — it hasn’t: To me, this signifies that the deflationary forces in the economy have so far far outweighed the inflationary ones (specifically, tripling the monetary base), to such an extent [...] Mike Mayo, CLSA’s bank analyst, told Bloomberg TV’s Stephanie Ruhle and Erik Schatzker on “Market Makers” today that “We are about to see a rebirth of shareholder rights…I will be going to the annual meetings for the first time ever.”
Mayo also said, “Come back as a corporate director, you get fired one out of three thousand times, you get paid a lot of money. A lot of times it is [...] Wall-Street Craziness Is Back Concocting “synthetic” securities once again. The craziness on Wall Street, the reckless for-the-moment-only behavior that led to the Financial Crisis, is back. This time it’s Citigroup that is once again concocting “synthetic” securities, like those that had wreaked havoc five years ago. And once again, it’s using them to shuffle off risks through the filters of Wall Street to people who might never know. What bubbled to the surface is that [...] Goldman Sachs Group Inc. (G) has been hired by the Russian government to burnish the nation’s image overseas and attract more institutional investors. The bank has signed a three-year agreement with the Economy Ministry and the Russian Direct Investment Fund to advise on issues such as communicating government decisions and setting up meetings with investors, according to Sergei Arsenyev, Goldman Sachs’s managing director of investment banking in Moscow. “The pool of investors that Russia talks [...] A survey of 16 of the largest institutional bondholders by Bloomberg found that 10 would not reduce their holdings if the Chancellor watered down efforts to bring the public finances under control. The research was released as it emerged that Government borrowing for the first five months of the year was running more than 25pc over target, a revelation that prompted Nomura’s UK economist Philip Rush to warn that the Chancellor will [...] Zig Lambo of The Energy Report (8/30/12) Oil prices are starting to creep back up while gas, coal and uranium are poised for moves this fall, according to Mark Lackey, long-time energy analyst now representing resource companies with the IR firm of CHF Investor Relations. In this exclusive interview with The Energy Report, Mark shares his current insights on energy markets and talks about a number of companies he thinks are [...] By Vedran Vuk, Casey Research
How far is the Fed from reaching the bottom of its ammunition box? Well, both Mario Draghi and Ben Bernanke said no to yet more monetary stimulus last week. Wall Street unsurprisingly was disappointed. Wall Street expected more stimulus, as institutional investors are analyzing monetary policy from their own perspective rather than the central bank’s viewpoint – understandable, but a big mistake. Wall Street’s Conundrum: with the S&P 500 up less than [...] From Crossing Wall Street: … Bob Dylan’s music was the soundtrack for the counterculture of 1960s America. Now it has become a selling point for an unusual bond-offering being marketed to institutional investors and wealthy individuals. A privately held Nashville, Tenn., company is preparing a $300 million bond backed by the cut it receives as a middleman between music companies and songwriters and the outlets that broadcast their music. The company, Sesac Inc., has… Read [...] From The Reformed Broker: Each week we are treated to another pontification about why Americans are dumping or avoiding stocks. Most are written by non-market participants, often with the input from Ivory Tower institutional investors or a smattering of quotes from amateur traders. The journalists are trying to wrap a story around the undeniable data, endeavoring to explain the unthinkable. Andrew Ross Sorkin came up to bat this morning. His version [...] From The Reformed Broker: Each week we are treated to another pontification about why Americans are dumping or avoiding stocks. Most are written by non-market participants, often with the input from Ivory Tower institutional investors or a smattering of quotes from amateur traders. The journalists are trying to wrap a story around the undeniable data, endeavoring to explain the unthinkable. Andrew Ross Sorkin came up to bat this morning. His version [...] The majority of institutional investors and corporates are bearish on the EUR but they are unconvinced that a core eurozone breakup/defection would take place according to JP Morgan global FX strategy survey. The survey was based on the polls from 145 JMP’s clients (76% institutional with $2.5trillion of AUM, and 24% corporates). http://www.efxnews.com/story/13666/majority-investors-bearish-eur-dont-see-emu-breakup-jpmorgan-survey?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Efxnews+%28eFXnews+%29 By William L. Watts FRANKFURT (MarketWatch) — The Center for European Economic Research, or ZEW, said Tuesday that its index of German investor expectations fell to minus 19.6 in July from minus 16.9 in June. “The decline of the economic expectations concerning the end of 2012 is flattening out gently. This could possibly be an early sign of an encouraging development in 2013. However, risks should not be underestimated,” said [...] From Sober Look: Investors seem to have a bottomless appetite for investment grade (IG) corporate paper. Issuers are coming to market to borrow money at ridiculously low rates. Even for the longer maturities, the spreads are 1-2% above the corresponding Treasury yield. Here are some examples: Tyco: 10-year notes at Treasurys + 190bp In the week following Facebook’s IPO, it gradually became clear what had happened:
In the middle of the IPO roadshow, the company told analysts at the IPO underwriters to cut their estimates for Facebook’s Q2 and full-year performance because the second quarter was going badly. The analysts then verbally relayed this information to big institutional investors, who were understandably spooked by it. Meanwhile, small investors, to the extent they noticed, only heard about [...] Everyday, we hear some pretty grim predictions about the markets and the economy. But this is one of the more comprehensive and most gloomy outlooks we’ve ever seen.
Raoul Pal expects a series of sovereign defaults, the “biggest banking crisis in world history”, and asserts that we don’t have many options to stop it. Pal previously co-managed the GLG Global Macro Fund. He is also a Goldman Sachs alum. He currently writes for The Global Macro Investor, a research publication for large [...] From FTAlphaville: Thursday’s FT declares “the end of a six-decade passion for equities”. Quite a claim. Institutional investors, from pension funds to mutual funds sold directly to the public, have slashed holdings in the past decade. Stocks have not been so far out of favour for half a century. Many declare the “cult of the equity” dead. The story may evoke a feeling of déjà vu for some. Especially those who read the August 13, 1979 edition of [...]
Facebook shareholders just filed a class action suit against Facebook and Morgan Stanley.
The firm handling the suit is Robbins Geller, which won $7 billion from Enron bankers. Click here to see the complaint. They are suing over the allegation that analysts at Facebook’s IPO underwriters cut their estimates for the company in the middle of the IPO roadshow—and only told institutional investors about this change, not everyone interested in buying Facebook stock. The suing lawyers argue that [...] From VIX and More: With a half hour to go in today’s trading session, over one million put contracts have already been traded on the S&P 500 index, which is about 2 ½ times the average daily volume. This elevated put volume comes on top of 913,000 SPX put contracts yesterday, which was the second highest for 2012. The one million level is rarely seen in SPX puts and generally indicates an [...] From FT:
Some of Facebook’s earliest backers plan to sell an additional $3bn worth of shares in Thursday’s initial public offering, as they take advantage of a wave of public interest in the social network group’s flotation. The move will increase the number of shares on offer by 25 per cent, with proceeds flowing to existing investors such as Goldman Sachs, Tiger Global Management and Accel Partners. Investor demand has been stoked by a cross-country US roadshow over [...] By John Shinal SAN FRANCISCO (MarketWatch) — When it comes to comparing blockbuster Internet IPOs, make no mistake: The sequel produced by Facebook will be a bigger hit than the original from Google eight years ago. At the same time, however, the very success of this week’s Facebook FB 0.00% offering will make it harder for retail investors to make the kind of money on its shares that they did on Google GOOG +0.27% , which [...] |
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