RSS feed[SFTW] Now that’s what I call a Target
One of the mysteries, to me, of the Greek crisis has been why there should be any deposits left in the local banks. All those with more euros than they need in order to eat and stay warm and dry should have moved their savings to,
Weekender
This week on FT Alphaville,
- Isda was asked if there was a credit event…
- … and answered.
- Though we had some beef with its comms strategy…
- … given the opacity surrounding its determinations committee.
Further further reading
For the commute home,
- German love for Spain’s fiscal deficit numbers… “Everybody knows the Spanish are lying about the figures”
- Cassandra Does Tokyo’s advice for would-be financial demagogues
- But Iceland,
Big banks to EBA: just about done here?
Yeah, we knew the LTRO-inspired rally would make it easier for European banks to start closing the gap between their capital ratios and those required by the EBA – or at the very least, as in the case of Commerzbank,
Finland’s got a secret
A reader passes on this curious detail from a Finnish MPs’ debate on Greece (via Helsingin Sanomat):
Some MPs expressed shock that the Ministry of Finance decided to keep the collateral agreement reached between Finland and Greece a secret.
US Markets Live transcript 2 Mar 2012
Markets Live chat transcript for the chat ending at 16:04 on 2 Mar 2012. Participants in this chat were: Cardiff Garcia Joseph Cotterill, FT Vivianne Rodrigues, FT CGHello! CGHello!
Did your grandma buy Greece CDS or what?
FT Alphaville is starting to feel a bit bemused at the level of outrage expressed around town the globe on the behalf of those poor buyers of credit default swap protection on Greece. But, here’s a question:
Markets Live transcript 2 Mar 2012
Markets Live chat transcript for the chat ending at 12:07 on 2 Mar 2012. Participants in this chat were: Paul Murphy Claire Jones FT Bryce Elder/FT PMMorning PMWelcome to ML
They’re back! (thanks to Ltro 2)
Yes, the ‘hoarders’ are back. From Dow Jones:
FRANKFURT—Banks’ overnight deposits with the European Central Bank surged 63% on Thursday, shattering the previous record high, indicating an extremely elevated level of liquidity in the banking system after the ECB’s second three-year loan operation.
ISDA: the “S” seems to stand for “sneer”
We’ve been curious for a while about the media.comment blog at the International Swaps and Derivatives Association, which declares its mission thus:
media.comment addresses mainstream business and financial media coverage of the derivatives industry.
Further reading
Elsewhere on Friday,
- Keep on trucking.
- Financial innovation as charity to your fellow humans. Or not.
- A good idea, which will never be implemented.
- BUY GOLD.
- A world devoid of science,
Pink picks
Comment an analysis from the FT,
Philip Stephens: Danger in Xi’s rebuff to Obama
When Xi Jinping tipped up at the White House recently Barack Obama made a proposal. The president said they both had an interest in setting up a serious dialogue between the US and Chinese armed forces.
Snap news
Breaking pre-market news on Friday,
– German retail sales fall – Bloomberg
– Rentokil year end figures – statement
– Cove Energy seeks to clarify tax situation – statement
– Laird year
Further further reading
For the commute home,
- The US Treasury Department writes an open letter to The Economist in defense of Dodd-Frank.
- The life of the number-crunching analyst, in charts.
- Volcker Rule explainer from Mike Konczal.
Getting physical, IOSCO
In case you missed it earlier on Thursday…
IOSCO (the umbrella securities regulators’ body) has published a report asking for comments on regulating a rather key cog in the physical market for oil.
Alan Beattie, cantankerous metaphor-wielding zombie killer,* has a question…
… and he asks it in one of those electronic not-quite-long-enough-to-be-a-book things that are becoming increasingly popular (click cover for Amazon link):
We plan to run a Q&A with Alan about the book,
Credit event circus, cont’d
NEW YORK, March 1 (Reuters) – Bill Gross, the co-CIO and co-founder of bond giant Pimco, said on Thursday that the decision by a major derivatives agency to not declare a credit event on the writedown of Greek sovereign debt sets a dangerous precedent.
Knights, damsels, and tax-advantaged debt buybacks
FT Alphaville has been very curious about exactly what went on in two tax schemes that the UK government legislated against this week. While Barclays wasn’t the only company that engaged in the types of transaction affected,
Greece CDS: trigger sad
Shhhh! Be very, very quiet. The Isda Determinations Committee has been meeting to decide whether there’s been a restructuring Credit Event that would trigger payouts on CDS referencing Greece and we don’t want to spook them.
Markets Live transcript 1 Mar 2012
Markets Live chat transcript for the chat ending at 12:02 on 1 Mar 2012. Participants in this chat were: Paul Murphy Bryce Elder/FT PMMorning PMWelcome PMOh look
Insider crack down in Germany and…northern England
Developing…
There is what looks to be a rather large insider dealing case breaking in Germany involving allegations that share prices may have been manipulated by the media. Snap from Bloomberg:
Munich prosecutors conducted 86 raids in Germany and other countries yesterday in a probe of stock fraud,
Greece CDS: trigger happy
Jeez, guys, look, there’s going to be a credit event that triggers Greece CDS, ok? Or, at least, it seems highly likely. So, take a chill pill.
What, you don’t want to? Instead you want to submit another request to the Isda Determinations Committee to try to trigger the contracts? Fine,
Further reading
Elsewhere on Thursday,
- How to clear your browsing data, re: new google privacy policy change.
- Americans, vote for your preferred debt-to-GDP ratio.
- About those misleading unit labour costs.
Pink picks
Comment and analysis from the FT,
Gapper: London must scare insider dealers
They take enforcement seriously at the Federal Bureau of Investigation. They get Gordon Gekko to warn off hedge fund managers from trading on inside information,
Snap news
Breaking pre-market news on Thursday,
– Tata Comms reportedly weighs bid for Cable & Wireless Worldwide – story
– Growth in all regions for WPP – statement
– Man Q3, insists “in-line” –
Further further reading
For the commute home,
- More on the big Treasury futures, gold, et al, sell-off, from the WSJ…
- This is how regulators should make their rules
- If you haven’t read the Bloomberg thing on Peter Schiff’s brother,
A downTic in China’s holdings? Doesn’t matter
FT Alphaville has written plenty of “explainer”-type posts on the relative accuracy of the monthly Tics data — i.e. who holds US Treasuries — versus the annual revisions (listed below if you’re fantastically bored).
The growth of EM local-currency debt markets
A horribly-fonted chart from Ashmore Investment showing the development of local-currency emerging market fixed income debt…
… but what caught our eye was the forecast for its continued medium-term growth:
When you’ve been Humphrey-Hawkinsed
The chairman of the Federal Reserve, listening intently to the House Committee on Financial Services, at pixel time. Ron Paul already brandished a silver ounce. It’s just not the same now that Ben does his own press conferences…