Some reading for your end of week pleasure
Experiment: (I am going to try to create this in real time, so refresh this page frequently) Finished !
Linkage:
• Leverage Rising on Wall Street at Fastest Pace Since ‘07 Freeze (Bloomberg) Banks are increasing lending to buyers of high-yield company loans and mortgage bonds at what may be the fastest pace since the credit-market debacle began in 2007
• What’s C Worth? (Krasting)
• Big is Back: The Return of the Corporate Giant (The Economist) Today the balance of advantage may be shifting again. To a degree, the financial crisis is responsible. It has devastated the venture-capital market, the lifeblood of many young firms. Governments have been rescuing companies they consider too big to fail, such as Citigroup and General Motors. Recession is squeezing out smaller and less well-connected firms. But there are other reasons too, which are giving big companies a self-confidence they have not displayed for decades.
• Is The Fed Enabling Foreign Central Banks To Swap Out Their Agency Debt Into Treasuries? (Zerohedge)
• Consumers’ debt-tactic changes may hurt banks (Daily Herald) Wall Street may be repeating the mistakes that felled American International Group Inc., which sold the equivalent of cheap lottery tickets in the belief that no one ever would hit the winning number. These tickets are credit default swaps, derivatives that insure against a company default on its debt. The problem is banks and brokers look as if they are selling these swaps too cheaply, at least for a raft of industrial companies.
• Has the tide turned for corporate profits? (Economist)
• AIG’s Swaps Blunder Now Replaying on Wall Street (Bloomberg) Wall Street may be repeating the mistakes that felled American International Group Inc., which sold the equivalent of cheap lottery tickets in the belief that no one ever would hit the winning number. These tickets are credit default swaps, derivatives that insure against a company default on its debt. The problem is banks and brokers look as if they are selling these swaps too cheaply, at least for a raft of industrial companies. The willingness to gamble like this may be symptomatic of the exuberance that has gripped markets this summer.
• Fannie, Freddie soar on opportunistic day traders (Reuters)
• Nation’s Unemployment Outlook Improves Drastically After Fifth Beer (The Onion)
Anything else linkworthy?
Have a good weekend~!
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