Another good piece from the public WSJ on "How Credit-Market Tremors Have Affected Junk Bonds, LBOs and Hedge Funds." Its sortable by clicking on the top of each column.

SCORECARD: DEBT DILEMMAS
click thru for full size table

Scorecard


If I keep promoting the WSJ, I am gonna have to ask for a piece . . .

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Source:
SCORECARD: DEBT DILEMMAS
How Credit-Market Tremors Have Affected Junk Bonds, LBOs and Hedge Funds
Annelena Lobb, Cassandra Vinograd

http://online.wsj.com/public/resources/documents/info-BondTurmoil0707-sort.html

Category: Credit, Derivatives, Finance, M&A, Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

18 Responses to “Credit-Market Tremors”

  1. Grodge says:

    No tie on TV! Looking very casual compared to the other “suits.” Good appearance: “winners and losers in the CDO market.”

    Did Larry really say the market is being “misunderestimated”? Let’s hope this term is not put into common usage.

  2. wunsacon says:

    I’m telling ya, Bernanke is already dropping money in Japan to help the carry trade. Only he’s not using helicopters. He’s using the mail:

    http://tinyurl.com/2o2u66

  3. Dave says:

    You’d better reference WSJ now. Soon it will become “fair & balance” and a joke.

  4. Pool Shark says:

    Actually wunsacon,

    Later in the article it says some of the money was found “inexplicably” falling from the skies.

    Is Ben using Black helicopters???

  5. mhm says:

    There is nothing wrong in postponing bond issuance, for funding that is (LBO is another story). Why go forward and make bad deal if you don’t have to? Market condition changed. I’d too would delay the dog walk if there is a tornado watch…

  6. techy2468 says:

    i have noticed that this is mostly a bearish blog.

    to keep it balanced i am looking for some bullish blogs, if anyone knows about balanced bullish blog please point me to it.

    anotehr observation of mine:
    Bears use reasons, and a ton of analysis to arrive at their conclusion (and most of the time they are not very sure, just a feel of higher probability)

    but Bulls dont have much reasons, they have notions like “market is always right”, “Things are not bad as they seem” (just a statement no data or analysis), “we need to be positive else it will crash” etc..

    is it just me or is that really the nature of pessimist(bears)(i think most pessimist are realists) and optimists(bulls)??

  7. Greg0658 says:

    perfect opening for this question

    Do the featured specialists on CNBC pay to be on / get paid to be on / appear for mutual benefit?

    Its probably all of the above but was wondering on the facts. Does it matter in full disclosure PC that we don’t know?

  8. VJ says:

    American Home Mortgage Investment Fails To Open

    NEW YORK – Shares of American Home Mortgage Investment Corp. didn’t open for trading Monday morning after the company said late Friday its banks are demanding it put up more cash after the mortgage lender wrote down the value of its loan and security portfolios.

    American Home’s shares have been hit hard by turmoil in the subprime mortgage market, despite the fact that the company doesn’t offer those types of home loans. The company specializes instead in adjustable-rate mortgages and Alt-A loans, which often require less or no documentation of a home buyer’s income.

    WSJ

    ~~

    (Of course they’re not involved in those tacky subprime mortgages, no, they’re just writing Low-Doc and No-Doc mortgages. How could there possibly be a problem there ?)
    .

  9. Kevin Depew says:

    Invincible! Also, Nutty!

    But enough bad news for one day. A group that calls itself “Invincible America” (seriously) says they have prosperity under control and will use their powers of transcendental meditation to push the Dow Jones Industrial Average above 17,000 within a year, according to Reuters.

    Since July 2006, Invincible America has had about 1800 people practicing Yogic Flying to “create an upsurge of coherence and positivity in national consciousness and radiate an urgently needed influence of harmony throughout the world.”

    So far, so good!

    As the group noted in a press release back in July 2006, their efforts after just one week saw the Dow post its highest weekly gain in 14 months.

    “The research proves that as little as the square root of one percent of the population of a country practicing Yogic Flying together in a group is sufficient to reduce negative trends and strengthen positive social and economic tendencies throughout the entire population,” said Dr. John Hagelin, who serves as the Director of the Institute of Science, Technology and Public Policy at Maharishi University of Management in Fairfield, Iowa.

    Dr. Hagelin explained that the number of Yogic Flyers required to produce this coherent effect for the United States is 1730.

    However, he said, the initial group of 1200 experts was more than enough to create a calming, stabilizing effect in national consciousness.

    The group now has 1,800 people practicing Yogic Flying, but the number is growing.
    Hagelin told Reuters that when the number reaches 2,500 within the next 12 months, America will see a major drop in crime and the virtual elimination of all major social and political woes.

    That’s cool. But we’d settle for a clean public restroom.

  10. Fred says:

    So far Citi (CFO CC on Friday), and today Morgan Stanley have come out and said their loan book is nowhere near as bad as the markets have assumed (and S&P RAISED their credit rating from A+ to AA-.

    …..Goldman Sachs will boost the size of a corporate debt fund it is starting in order to capitalize on recent instability in the markets, according to The Wall Street Journal.

  11. a guy called john says:

    techy2468,

    Check out Victor Niederhoffer’s Daily Speculations. Barry has a link to it (by his name) in the left column. I wouldn’t say it’s anywhere near as balanced as Barry (even as Barry points out the negative, he’s been long, and says so), though. Plus you gotta put up with so much grandstanding and “squash/twister/clouds are like the market” bullshit that it gets nauseating.

    On second thought, don’t bother. Watch Kudlow.

  12. Winston Munn says:

    Quote: “…..Goldman Sachs will boost the size of a corporate debt fund it is starting in order to capitalize on recent instability in the markets, according to The Wall Street Journal.”

    Translation: The Goldman Sachs branch of Treasury Department has boosted its corporate debt fund from $12B to $20B because nobody else is willing to lend these fools any money and we got our orders to “bail ‘em out no matter what the cost.”

  13. Winston Munn says:

    Quote: “Bears use reasons, and a ton of analysis to arrive at their conclusion (and most of the time they are not very sure, just a feel of higher probability)

    but Bulls dont have much reasons, they have notions like “market is always right”, “Things are not bad as they seem” (just a statement no data or analysis), “we need to be positive else it will crash” etc..

    is it just me or is that really the nature of pessimist(bears)(i think most pessimist are realists) and optimists(bulls)??”

    Techy: I think this is a good observation and well describes the differeing viewpoints – at least from what I have seen.

    I can explain only myself. I have pessimistic tendencies (which is probably why I am not rich), yet at the same time I find the intellectual challenge of shorting of more interest than seeking good long positions. However, I am not so silly as to not flip to the bull side under the right conditions.

    Perspectives make a difference. Where you see a bearish blog I see one of the few outposts of reason and balance.

    Of more bewilderment to me is the hostility that eminates from many bulls when anyone dares suggest the market may fall. I am reminded of the blind, unbridled loyalty of Bush supporters.

  14. Philippe says:

    Amazing US treasury would borrow (again) further money from foreign parties, to bail out the financial sector (Banks included) in order to plough further funds (again) in distressed funds.
    Anyway in the post 1987 there was a Japanese Banks premium to be paid by Japanese domestic Banks it will be seen through the bonds underwriting as rating agencies have seen their reputation dented.

  15. Philippe says:

    Bloomberg July 31ST

    Bear, Lehman, Merrill, Goldman Traded as Junk, Derivatives Show

  16. techy2468 says:

    just in case my comment about this blog was misunderstood….i will like to clear my position….that i am also very bearish (but not a investor/trader yet) but i beleive in keeping the balance so that we dont miss the prosperity train…since its so impossible to time the market.

    but i do agree that a bullish blog will have a ton of bullshit…….since in the current economic conditions….bulls dont have a reason other than that the dont want a loss in their hand….they just want the market to go up no matter what.

    but the government is on their side, since positive market benefits everyone….negative hurts most people, hence bulls have a lot of fans.

    ideally speaking the market should have marked to market all the bad loans……renegotiated with the home owners (or whoever has the loan)…..taken a correction to come back to real value…..and we may have been back to healthy conditions, rather than just going up against all odds to have a big fall, leading to foreclosures and layoffs everywhere.

    but i guess the people in charge dont want the party to end and they will push as much as they can to the brink….and of course the current administration cares about only another year….after that its not their problem…..they will leave no room for success for the next government (it looks like a very good conservative plan, wow)

  17. Greg0658 says:

    Winston says “I have pessimistic tendencies (which is probably why I am not rich), yet at the same time I find the intellectual challenge of shorting of more interest than seeking good long positions…Perspectives make a difference”

    I remember God reminds us that he provides for all the birds and why wouldn’t he care for me

    A positive perspective is good .. just remember the universe is based on balance.

  18. Winston Munn says:

    Greg, I do appreciate the comment. I also realize that Socrates said, Know thyself. In trading it is important to know your own psychological makeup in order to avoid personal bias creeping into decision making.

    In the long run, optimism wins.