Posts filed under “Analysts”

“Moody’s Places AAA Ratings Of 177 U.S. Public Finance Issuers On Review For Possible Downgrade Due To Review Of U.S. Government’s AAA Rating”

Moody’s announced today:

Moody’s Investors Service has placed under review for possible downgrade the Aaa ratings of 177 public finance credits, affecting a combined $69 billion of outstanding debt. The credits include 162 local governments in 31 states, 14 housing finance programs and one university. A complete list of affected securities and additional analysis is available at

These actions relate to Moody’s July 13 decision to place the Aaa government bond rating of the United States under review for downgrade, and reflect the rating agency’s assessment that some Aaa public finance ratings would likely be indirectly affected by potential credit deterioration of the sovereign.


In a previous action on July 19, Moody’s placed the ratings of five Aaa U.S. state governments under review for possible downgrade, affecting approximately $24 billion of general obligation and related debt. Those states are Maryland, New Mexico, South Carolina and Tennessee and the Commonwealth of Virginia.

The entities on down grade watch include:

  • The Colorado Housing and Finance Authority’s Single Family Mortgage Bonds and the Single Family Program Bonds, 2009 Class I
  • Idaho Housing and Finance Association’s Single Family Mortgage Senior Bonds, Series 1996B, Series 1996C, Series 1998D, Series 1999F, Series 1999-I*, Series 2000A, Series 2000C, and Series 2000D
  • Kentucky Housing Corporation’s Housing Revenue Bonds
  • Utah Housing Corporation’s Single Family Mortgage Senior Bonds, Series 1998G, Series 2000A and NIBP
  • The University of Washington
  • The Smithsonian Institution

Given that Moody’s and Standard & Poor both say that they’ll likely downgrade U.S. credit even if a debt ceiling deal is reached, it’s looking dire for the above-described entities and bond issues.

Category: Analysts, Credit, Think Tank

Rating Agencies: Debt Police Go Rogue

How did a bunch of unelected corporate suits get the power to wreck the global economy? > Yesterday, I taped an interview with Canadian TV, where the question of the rating agencies came up. I stated my long held views about them: That they were a prime enabler of the credit crisis; that they were…Read More

Category: Analysts, Bailouts, Really, really bad calls

There’s Only One Way to Avoid a Downgrade to U.S. Credit

According to Reuters, a majority of economists now think that U.S. credit will be downgraded. The debt ceiling plans being proposed likely will not avoid a debt downgrade. Indeed, as Zero Hedge notes, the cuts being proposed in the debt ceiling proposals would be offset by the costs of the downgrade: The US downgrade alone,…Read More

Category: Analysts, Credit, Think Tank

When Will Apple Be Bigger than ExxonMobil?

Apple’s blowout numbers this week got tongues wagging about the tech juggernaut. David Wilson at Bloomberg charts the answer to the question as to when Apple Inc. will overtake Exxon Mobil as the world’s most valuable public company. Apple is currently at ~$358.7 billion, a mere 13%behind Exxon Mobil at $410.3 billion. Short answer: At…Read More

Category: Analysts, Trading, Valuation

S&P Threatens To Downgrade Everything

Media coverage of S&P downgrade threat; • Reuters – S&P threatens downgrade of U.S. financial companies Standard & Poor’s on Friday raised the pressure on debt negotiators in Washington, saying it could downgrade insurers, securities clearinghouses, mortgage agencies and a laundry list of other firms without a deal soon to lift the debt ceiling and…Read More

Category: Analysts, Credit, Think Tank

Reporting Season Farce

Albert Edwards is the uber-Bear who sits on the Global Strategy Team at Société Générale. Edwards notes:  “It’s that surreal time of the quarter, just ahead of the reporting season, when US companies cajole compliant analysts into reducing their profit forecasts so that on the day the company can record a positive earnings surprise.” Here’s…Read More

Category: Analysts, Corporate Management, Earnings, Trading

Stock Buybacks vs Insider Buying: 70:1 Ratio

“While insiders are willing to use corporate cash to try to support the value of their stock-based compensation, they don’t seem to think their stocks are attractively priced.“ -Charles Biderman, Trimtabs > Over the years, I have been critical of Trimtab’s Charles Biderman (See this, this, this and this). I suspect much of the visibility…Read More

Category: Analysts, Corporate Management, Investing

Analysts Exist to Make Economists Look Respectable

“The only function of economic forecasting is to make astrology look respectable.” -John Kenneth Galbraith > Regular readers know that I do not hold the economics profession in particularly high regard. These sociologists too often have an unfortunate unfamiliarity with how Human Beings behave in the wild. Forget forecasting — economic theories fail to adequately…Read More

Category: Analysts, Really, really bad calls

Are Economists Now Too Pessimistic?

Société Générale has a very interesting piece out this morning looking at the notion of economic surprises and a double-dip scenario: “The economic surprise indicator has returned to very low levels, indicating that a lot of negative surprises are now discounted. We don’t believe that the indicator will remain low for long as the drop…Read More

Category: Analysts, Psychology, Really, really bad calls

Blackberry vs Apple vs Droid

About 6 months ago on CNBC Fast Money, I discussed why Blackberry was toast (cant find the video, but it may been this). I was astonished anyone would even defend RIMM against the Apple onslaught. To be blunt, i am surprised RIMM is a still a double digit stock. This was one of the cases…Read More

Category: Analysts, Really, really bad calls, Technology