Writedowns vs Underwriting Scorecards

Smackdown! WDCI vs LEAG . . .

Well, not quite. Today’s interesting MSM pick of the day is a Bloomberg column on none of the latest Wall Street pastime’s: Toting up write downs:

WDCI, the Bloomberg function introduced less than five months ago to track the writedowns, has overtaken LEAG, which ranks bond and stock underwriters, in viewers per day.

"WDCI is the new league table, or even better, the negative league table,” said Hyde, a banking analyst at London-based European Credit Management Ltd., which oversees $27 billion for clients. "If people look at LEAG these days, it’s to see who the biggest underwriter of mortgage securities was in the past. You’re incriminated if you were.”

The writedowns and credit-market losses at more than 110 of the world’s biggest banks and securities firms reached $514 billion last week as the credit crunch continued to wreak havoc.

Since two Bear Stearns Cos. funds invested in mortgage securities imploded in July 2007, seven bank chiefs have lost their jobs, and regulators have seized 12 U.S. banks. New York- based Bear Stearns, then the nation’s fifth-largest securities firm, was forced to sell itself when faced with bankruptcy.

The tally on WDCI already surpassed the top of the range that the International Monetary Fund estimated in April banks would lose during the credit crunch. The IMF is scheduled to publish an update of its Global Financial Stability Report later this month.

As the losses build, WDCI readership has climbed. In July, an average of 4,000 users looked at the table daily, up 34 percent from the previous month, according to data compiled by Bloomberg. On some days, more than 10,000 Bloomberg users monitored WDCI. By contrast, LEAG was viewed by an average of 1,800 people daily in July, 17 percent fewer than a year earlier."

Interesting stuff . . .

Source:
Counting Writedowns Replaces Deals Won as Wall Street’s Ritual
Yalman Onaran 
Bloomberg September 2 2008
http://www.bloomberg.com/apps/news?pid=20601109&sid=azgIxINbnuhU&

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What's been said:

Discussions found on the web:
  1. Michael Fowke commented on Sep 2

    Once all the writedowns are out of the way (probably not long now), the recovery will begin. Wait and see. I’m right.

  2. Mike J commented on Sep 2

    Oh how I wish I had the scratch for a Bloomberg terminal. Just this morning on BloombergTV, one of the reporters said, “If you look at my Bloomberg terminal . . . ” and I said out loud, “I wish I had a Bloomberg terminal!”

    You guys have all the fun . . . us proles will continue to use Bloomberg.com

  3. obhave commented on Sep 2

    how many brokers/agents used quickstubs . com to get the deal closed? No wonder we are in the mess we are in!

  4. Vermont Trader commented on Sep 2

    All the ingredients in place today…

    Action last 3 days shakes the weak shorts out.

    Major losses in energy trades and for the long/short crowd, hedge funds are blowing up..

    The last strong sector finally done. All sectors have suffered major losses off their highs.

    Volatilty much worse than VIX would indictate.

    I’m all in.

  5. Mike in NOLa commented on Sep 2

    “The tally on WDCI already surpassed the top of the range that the International Monetary Fund estimated in April banks would lose during the credit crunch. The IMF is scheduled to publish an update of its Global Financial Stability Report later this month.”

    Downloaded and am listening to The Black Swan from the Houston Public Library. Surprised it was available. The above statement sounds just like Taleb’s ruminations estimates and predictions. Will they get it any more correct the second time? I doubt it.

  6. E commented on Sep 2

    Vermont Trader, are you all in on the long or short side? I see today as a possible last chance to get some SKF cheap.

  7. Vermont Trader commented on Sep 2

    very very short but only for the day.

    then 1x leverage short as a core postition.

    and I bought some SKF in the premarket this morning for under 110..

  8. Simon commented on Sep 2

    If everything is dropping in value isn’t cash the best position?

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