A Little More Today than Yesterday! Trading Stuff.
Archive for March, 2009
Loans vs. Bonds: Relative Value
Mar 31st
Tyler Durden submits:
Slight improvement in average loan and bond spreads from two weeks ago, when loans were 857 bps and bonds averaged 1740 bps. These have tightened to 839 bps and 1574 bps respectively over the last week. Senior-secured negative basis capital structure opportunities have disappeared, compared to several such arbitrage opps available in February 19. While equity markets have continued to ramp up from mid March, credit has moved only marginally tighter.
Notable movers tighter include [[TRW]] in both loans and bonds as well as Aeroflex (ARXX). Most other names had nominal moves tighter. Last, the only negative basis (same as we highlighted two weeks ago) in Alliance Imaging, has converged almost to parity at 15 bps, a 55bps convergence from the last loan-bond update.
Could Capital Gains Lose Some Preferential Tax Treatment?
Mar 31st
Larry MacDonald submits:
You would think poor stock market returns and/or job losses would be perceived as the No. 1 threat to retirement security these days. Not so: that spot is claimed by high taxes, according to a recent survey. Inflation was not far behind.
Case-Shiller, and Housing Dynamics
Mar 31st
Markham Lee submits:
The latest Case-Schiller numbers are in and it appears that prices are down 19% on the year, the largest fall since the index started in 2000.
(From the Financial Times*): "Single-family home prices in the 20 largest metropolitan areas dropped 2.8 per cent in January, according to Case-Shiller’s index of the 20 largest US cities, another sign that the housing market bottom may still be distant.
Disclosure Regulations Need to Be Clarified
Mar 31st
Wellington Financial submits:
With increasing frequency, email blasts and update research reports are sent out to institutional equity investors that appear on the face to break the spirit, if not the letter, of Regulation FD (and its Canadian cousin).
Nortel and Air Canada are two high profile Canadian cases that stand out in my mind where “selective disclosure” led to major strife for all involved. Back in 2000, Oslers LLP put out a good summary that outlines why tighter rules were coming: