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Monthly Archives: October 2009

Secondary markets for retail…

Explore Bonds wrote an excellent post titled: Where to Buy TIPS On the Secondary Market… this is very useful and practical advice about the mechanics of retail bond purchases… kudos to the blog author for aggregating the information. There is also much to reflect on in this post as it relates to market structure for fixed income securities […]

Liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).

Money Market Black Swan Liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).  Learn lots more about liquidity and financial markets reform here at Riski … (Hattip ZeroHedge)

We’ll see a manager’s amendment next week…

Several years to get out of this…

Martin Wolf, associate editor at the Financial Times in London, talks with Bloomberg about a report today showing the U.S. economy returned to growth in the third quarter after a yearlong contraction.  Wolf also discusses reasons for the global economic crisis, the U.S. Treasury market and economic theory. (Source: Bloomberg)

Reposted with one comment

The financial system must be substantially reformed and put on a more stable basis. Who will do this? From the Huffington Post… ~~~ “One reason — which has never been directly addressed by Obama — may be that many of his chief financial advisers have pocketed extraordinary amount of money from banks and Wall Street, […]

The roadmap

Just a reminder of the scope of the intervention in the economy… a little dated and incomplete… from WaPo…

‘Too big to fail’ is too dumb to keep

An excellent opinion piece by John Kay, an economist, in the Financial Times … he begins by naming the litany of institutions that were brought down in the “Credit Crisis of 2007-2009″… He then describes the difficulty of regulating large, complex institutions with these words… “The variety of institutions is matched by the variety of […]

“In cases like this, the outcome is always along the lines of 50, 60 or 70 cents on the dollar”

~ We still don’t know why the Federal Reserve paid 100 cents on the dollar to the counterparties of AIG… the mystery is another mark against the “too big to fail” banks and their closely woven interconnection with the Federal Reserve … Bloomberg reminds us of a comparable closeout of a swaps transaction around the same time […]

“Too big to fails” in the muni markets…

America’s largest banks are the prime underwriters of muni debt and swaps… this area of the market has been a particularly abusive part of Wall Street. Their behavior against municipalities is a charge against them in the discussion of whether they should be broken up. There are many stories of predatory behavior towards municipal officials… muni swaps […]

Heating up…

Seems like it’s “heating up” around financial reform in Washington… and Chicago… Bloomberg News has a discussion with Republican Representative of California Darrell Issa in which he says a House panel wants to know if members of Congress received sweetheart loans from Countrywide. The Oversight Committee also issued a subpoena to Bank of America which […]