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Tag Archives: Liquidity

The Euro “big boy” view of the Obama plan

From Bloomberg… “Florian Esterer, a fund manager at Swisscanto Asset Management, and Dirk Becker, an analyst at Kepler Capital Markets, talk about President Barack Obama’s plan to curb U.S. banks. They also speak with Bloomberg’s Rishaad Salamat about today’s meeting of Group of Seven finance ministers in London. ” Here is the press release from […]

25 times levered, 30 days liquidity, living wills and the Iowa Citizens for Community Improvement

Chicago is a good place for the “people’s protest” Showdown in Chicago against the big banks… since it’s the heartland…  labor groups have organized this protest at the time of the American Bankers Association annual meeting… There is a lot of anger in America about the financial crisis, the practices of the banks, the bailout […]

The New Improved 2009 Floaters

So much is made of the special abilities of Wall Street to innovate new ways to flow capital to various entities… But is all innovation good? Or is some of it just new ways for Wall Street underwriters to package securities and make fees? The Wall Street Journal reports today on the New Improved 2009 […]

The pricing of subprime mortgage risk in good times and bad: evidence from the ABX.HE indices

The pricing of subprime mortgage risk Ingo Fender (BIS)* and Martin Scheicher (ECB)** Abstract This paper investigates the market pricing of subprime mortgage risk on the basis of data for the ABX.HE family of indices, which have become a key barometer of mortgage market conditions during the recent financial crisis. After an introduction into ABX […]

Feel the healthy “bankerness”

Approximately 8,000 banks in our country are healthy, solvent and in a position to fulfill their role in the economy and lend… We have framed the debate about the “credit crisis” in a way that overlooks the fact that the vast majority of financial institutions are well capitalized… toxicity and insolvency are concentrated in a […]

Minneapolis Fed

The Minneapolis Federal Reserve Bank has published a working paper disputing the conventional wisdom on the credit crisis… they attack four specific fallacies… very worthwhile to review… Bank lending to nonfinancial corporations and individuals has declined sharply. Interbank lending is essentially nonexistent. Commercial paper issuance by nonfinancial corporations has declined sharply, and rates have risen to […]

Besieging the regulators…

Near the end of the Civil War Union forces beseiged Petersburg, VA for 9 months. Confederate forces could barely find food to eat. Starving,  with their numbers dwindling due to desertions, and with Sherman’s forces approaching from the south, Lee attempted a break out. It failed miserably, and on April 2nd, Union forces soon assaulted the Confederate lines. […]

1000 words…

Chart from Naked Capitalism… Would a doctor prescribe massive blood  transfusions… or… a heart transplant… or… a pacemaker? But of course the problem is more complex… The global money center banks are not lending to each other… individuals are withdrawing cash from the system… everyone is liquidating assets that can be converted to cash… As others […]

Fog…

From Bobsguide…  ~~~~ “Kamakura Corporation announced Thursday that it has dramatically expanded the ability of the Kamakura Risk Manager enterprise risk system to calculate and display the risks of each transaction on the balance sheets of major financial institutions. The enhanced transfer pricing capabilities in Kamakura Risk Manager Version 7.0 allow major financial institutions and […]

Liquidity = coordination phenomenon

Securities trading parsed out academically… from a staff report recently published by the New York Federal Reserve… ~~~~ “Liquidity is sometimes defined as a coordination phenomenon. In financial markets, as investors move into a specific market they facilitate trade for all investors by reducing the cost of participating in this market. At the same time, easier trade […]