BUND, TBOND. Arriva l'inverno.......(VM99 anos)
- Creatore Discussione masgui
- Data di Inizio
gipa69
collegio dei patafisici
CDS report: “We are close to a financial system meltdown”Credit markets were reeling on Monday after the fire-sale of Bear Stearns, with credit indices reaching record levels on both sides of the Atlantic.
Fears that other banks or brokers could also run into trouble sent the iTraxx Europe index of investment-grade debt to a record 164.9 basis points, 7 basis points wider, while the iTraxx Crossover index of mostly junk-rated debt surged 14.6bp to 634bp.
But trading volumes were low in Europe, participants said, with few willing to trade.
JPMorgan Chase agreed to buy Bear over the weekend at a very cheap price following Friday’s surprise news that the investment bank would get emergency funding from JPMorgan and the US Federal Reserve after liquidity dried up.
In the US, the CDX investment grade index crept closer to the psychologically important 200bp level, reaching 197bp in opening trade before falling back slightly.
Spreads on Bear Stearns were at 400bp, down from 730bp at the close on Friday according to Phoenix Partners prices.
With trading floors awash with worries about who could be next, the CDS spreads of financial institutions were moving wider. The correlation market began to fall too, implying that the market is shifting from predicting general, systemic risk to “single-name” risk — the idea that some institutions are more vulnerable than others.
With many credit investors sitting on the sidelines, the only catalyst for performance in credit markets is likely to be intervention from the Fed or US government, said Jim Reid at Deutsche Bank, in a note to clients.
“The Fed has now stepped up a gear and ultimately we probably need the US Government to do so too. Even though we believe in free markets and believe that pain should be felt after such an unruly credit binge, we also think we are close to a financial system meltdown. At this stage moral hazard arguments need to be put in a wider perspective.”
But Mehernosh Engineer, credit strategist at BNP Paribas, said that intervention efforts would not be effective until the Fed recognised the nature of the crisis.
The core problem is that the Fed is still not acknowledging that triple A rated CDOs are not triple A. Until it does, the market is just seeing through all of its interventions. The Fed is trying to portray this as a liquidity problem but it’s an insolvency problem based on deteriorating assets.
Fears that other banks or brokers could also run into trouble sent the iTraxx Europe index of investment-grade debt to a record 164.9 basis points, 7 basis points wider, while the iTraxx Crossover index of mostly junk-rated debt surged 14.6bp to 634bp.
But trading volumes were low in Europe, participants said, with few willing to trade.
JPMorgan Chase agreed to buy Bear over the weekend at a very cheap price following Friday’s surprise news that the investment bank would get emergency funding from JPMorgan and the US Federal Reserve after liquidity dried up.
In the US, the CDX investment grade index crept closer to the psychologically important 200bp level, reaching 197bp in opening trade before falling back slightly.
Spreads on Bear Stearns were at 400bp, down from 730bp at the close on Friday according to Phoenix Partners prices.
With trading floors awash with worries about who could be next, the CDS spreads of financial institutions were moving wider. The correlation market began to fall too, implying that the market is shifting from predicting general, systemic risk to “single-name” risk — the idea that some institutions are more vulnerable than others.
With many credit investors sitting on the sidelines, the only catalyst for performance in credit markets is likely to be intervention from the Fed or US government, said Jim Reid at Deutsche Bank, in a note to clients.
“The Fed has now stepped up a gear and ultimately we probably need the US Government to do so too. Even though we believe in free markets and believe that pain should be felt after such an unruly credit binge, we also think we are close to a financial system meltdown. At this stage moral hazard arguments need to be put in a wider perspective.”
But Mehernosh Engineer, credit strategist at BNP Paribas, said that intervention efforts would not be effective until the Fed recognised the nature of the crisis.
The core problem is that the Fed is still not acknowledging that triple A rated CDOs are not triple A. Until it does, the market is just seeing through all of its interventions. The Fed is trying to portray this as a liquidity problem but it’s an insolvency problem based on deteriorating assets.
quicksilver
Forumer storico
dan24 ha scritto:
e invece se guardi il mininasdaq o il minis&p o pure il volatile (e carico di finanziari!) minirussell non è che abbiano perso piu di pochi punti oltre quello che gia erano, no?
d'accordo che gia erano a -2,5% ma per questi futures non è poi tanto
dan24
Forumer storico
QuickS ha scritto:e invece se guardi il mininasdaq o il minis&p o pure il volatile (e carico di finanziari!) minirussell non è che abbiano perso piu di pochi punti oltre quello che gia erano, no?
d'accordo che gia erano a -2,5% ma per questi futures non è poi tanto
non sto guardando i future del cme adesso...stavo guardando la discesa repentina del crude...adesso a 108,20...perso un dollaro in un amen...e continua a scendere...
già sotto i 108...forse qualc'uno inizia a tirare i remi in barca su sta speculazione...
107,70 adesso
quicksilver
Forumer storico
dan24 ha scritto:non sto guardando i future del cme adesso...stavo guardando la discesa repentina del crude...adesso a 108,20...perso un dollaro in un amen...e continua a scendere...
già sotto i 108...forse qualc'uno inizia a tirare i remi in barca su sta speculazione...
107,70 adesso
sono corso a vedere
non male....
Panurgo
Nuovo forumer
Fitch upgrades Bear Stearns
NEW YORK (AP) - Fitch Ratings upgraded Bear Stearns Cos. Inc. on Monday after the beleaguered investment bank agreed to an emergency sale to JPMorgan Chase & Co. at a steep discount.
Fitch raised the long-term issuer default ratings on Bear to "A-" from "BBB" and placed the ratings on Ratings Watch Positive. Fitch had placed the ratings on Ratings Watch Negative last Friday after Bear struck a deal with JPMorgan for short-term financing.
Bear Stearns agreed Sunday to a sale to JPMorgan at the equivalent of $2 per share. The stock closed at $30 on Friday and Bear Stearns said last week its book value per share was in the mid-$80s range.
Fitch affirmed JPMorgan's long-term ratings at "AA-" with a stable outlook.
SIAMO ALLE COMICHE!!!!
Tra un po' la Fed lancia un' opa ostile su Bearzz a 100 USD
NEW YORK (AP) - Fitch Ratings upgraded Bear Stearns Cos. Inc. on Monday after the beleaguered investment bank agreed to an emergency sale to JPMorgan Chase & Co. at a steep discount.
Fitch raised the long-term issuer default ratings on Bear to "A-" from "BBB" and placed the ratings on Ratings Watch Positive. Fitch had placed the ratings on Ratings Watch Negative last Friday after Bear struck a deal with JPMorgan for short-term financing.
Bear Stearns agreed Sunday to a sale to JPMorgan at the equivalent of $2 per share. The stock closed at $30 on Friday and Bear Stearns said last week its book value per share was in the mid-$80s range.
Fitch affirmed JPMorgan's long-term ratings at "AA-" with a stable outlook.
SIAMO ALLE COMICHE!!!!
Tra un po' la Fed lancia un' opa ostile su Bearzz a 100 USD
Similar threads
