What To Do With A Profitable Fannie And Freddie [View article]
"The USG explicitly did not guarantee any Fannie/Freddie security, as a previous comment reflected what is actually on page one of each Offering Circular. Subordinated debt is always ahead of common and preferred stock. "
"They call it an implicit guarantee for a reason. "
Indeed. The same wording is on the FNM/FRE MBS and the gov't came in and backed them. Also...
June ISM Manufacturing Index:49.7 vs. 52.0 consensus and 53.5 prior. Prices index 37.0 vs. 47.5 prior. Employment 56.6 vs. 56.9. Inventories 44.0 vs. 46.0. New orders 47.8 vs. 60.1. [View news story]
Nothing small about 19% of the economy. What does it take to 'service' that 19%? I imagine a good bit. 19% of the US GDP is $2.77 trillion. Any loses in manufacturing ripples through the economy.
June ISM Manufacturing Index:49.7 vs. 52.0 consensus and 53.5 prior. Prices index 37.0 vs. 47.5 prior. Employment 56.6 vs. 56.9. Inventories 44.0 vs. 46.0. New orders 47.8 vs. 60.1. [View news story]
Reduction in depreciation in Section 179 drove 2012 purchases for capital expenditures into 2011. Gets worse next year as the remainder of the tax incentives in Section 179 run out at the end of this year.
Wells Fargo (WFC) joins the list of banks adding fees where they can to make up for fee reductions mandated by Dodd-Frank. The bank plans to implement a $5/month fee for those checking accounts not maintaining a $1,500 balance or otherwise behaving as the bank wishes them to. [View news story]
"behaving as the bank wishes them to."
Geesh! Why do so many think they should get free services just because they are doing business with a bank.
What To Do With A Profitable Fannie And Freddie [View article]
Very good article. I don't know if this is anything or not. Here is the Discount Window and Payment System Risk Collateral Margins Table (click on link) http://bit.ly/OUhNWE
Look at line 52. GSE stock - 65%. That is 65% of market value OR INTERNAL FAIR MARKET VALUE estimate. I wish I knew more about what that meant?? Does the GSE stock mean the preferreds. According to this chart further up GSE Bills /Notes/ Bonds are valued at 98 to 95% depending on duration. US Treasuries are 96 to 99% of value can be used for collateral. 'GSE stock' has to be either common or Preferreds I would think. No other common stocks are listed to be approved for collateral even for the likes of XOM, MCD. They won't take KO's Coke's stock. So I got to think they are talking about the preferreds. Hmm...When fannie and freddie went into conservatorship Treasury Sec Paulson said they would work with the banks; "The agencies encourage depository institutions to contact their primary federal regulator if they believe that losses on their holdings of Fannie Mae or Freddie Mac common or preferred shares, whether realized or unrealized, are likely to reduce their regulatory capital below "well capitalized." The banking agencies are prepared to work with the affected institutions to develop capital restoration plans consistent with the capital regulations." Paulson's speech 9/07/08; http://cnnmon.ie/ML6daH If you look at the historical volume of some of the less popular preferred issues it appears they was never a big rush to unload them. On an issue like FMCKI with 20 million shares outstanding, total volume for the first two months after conservatorship was only about 6 million shares. Is it possible that some banks are still holding and the Federal Reserve is letting them value them at some kind of adjusted "internal" value.?
Crude oil will fall below $80 in June, with tropical storms and hurricanes the only potential catalysts that could send prices higher, ValuEngine.com's Richard Suttmeier says. If he's right, $79 crude would not only mark a seven-month low but also complete a 30% plunge from February's $110 top. [View news story]
Hmm...no premium for the coming Iranian Oil embargo July 1st? Seems that could be a potential catalyst to least put a floor in higher than $80.
The three board members who oversaw risk at JPMorgan (JPM) were notable for their lack of experience at managing risk at financial institutions. The Bank of Dimon is the only one of the TBTF crowd that doesn't have someone a bit closer to the industry on its risk committee. [View news story]
Earlier: " JPMorgan's CIO losses can't be described "in any way as a hedge," says hedge fund giant Michael Platt, whose BlueCrest capital was on the other side of the trade. "It's a trading loss. They deliberately put the positions on." "They're not out of those positions,"
This probably doesn't mean much to many but this is interesting to me. BlueMountain Capital is the only hedge fund on the government executive order mandated Counterparty Risk Management Policy Group (CRMPG). The CRMPG is charged with monitoring the debt and credit exposure of all the major banks - Risk management. The two names connected looked too similar to me so I googled them together. Among other things I found this guy on Linked-in. A portfolio manager for BlueCrest use to be a senior analyst at BlueMountain, and an executive director at Goldman Sachs. Ya think both BlueMountain and BlueCrest had insider information to screw JPM on these trades? Oh, BTW, from BlueCrest's website; The two founders of BlueCrest Capital Management, Michael Platt and William Reeves (now retired), were both Managing Directors and senior proprietary traders at JP Morgan, who left to establish BlueCrest in 2000. BCMLLP is fully owned by its principals.
Valuing Facebook Against Its Peers: Can A Case Be Made For The Stock? [View article]
Really...Someone really thinks a case can be made for FB's valuation? Really? IPO's have a little to do with valuations but mostly what the underwriters feel the market will bear. In the case of FB's IPO is all T&A. Buyers Friday are in for one big sucker punch.
Rents are surging from New York to L.A., as the average monthly U.S. rent for apartments hit an all-time high $1,008 in Q1. It makes sense: Demographics are favorable for rentals as a large cohort moves into the 25-to-35 age group, people who have lost their homes to foreclosure or short sales turn to renting, and some people have probably stopped doubling up. [View news story]
Also with younger people taking on more debt in the way of student loans they will be less likely to be out house shopping in the future, delaying a home purchase until later in life.
ICSC Retail Store Sales:+0.8% W/W, vs. -1.0% last week. +3.6% Y/Y, vs. +3.2% last week. The rise in sales is attributed to warm weather, receding gas prices, and improving confidence among high-income households. [View news story]
The rise in sales is attributed to warm weather, receding gas prices, and improving confidence among high-income households....
"There is significant evidence (QE) has caused collateral damage to pensioners, savers, and pension funds," writes Saga Group Director-General Ros Altmann, applauding the U.K.'s Treasury Select Committee demand that the BoE justify its "massive monetary experiment ... Forcing gilt yields lower is not a remedy for economic recovery." [View news story]
Yeah, Mark...I agree. I would love to see a study putting some numbers to this mess the Central banks have created. Direct and indirect costs need be be tallied.
U.S. Bancorp (USB +1%) and Comerica (CMA +5.2%) each posted Q1 earnings gains of more than 25% (I, II), thanks to increased lending and lower credit costs and loan-loss provisions, offering a bullish take on the economy and reinforcing the notion that smaller, regional banks are recovering more strongly from the financial crisis than the giants. [View news story]
Shares of Apollo Residential Mortgage (AMTG) trail off 5.8% premarket after the firm discloses a public offering of 13.9M shares of its common stock. The company says that it plans to use the proceeds to buy a variety of mortgage-backed securities. [View news story]
Buy this one with both hands this am here at $18 folks. NAV is 19.92. Management would be crazy to price the new shares so much below NAV and screw current holders. JMO
What To Do With A Profitable Fannie And Freddie [View article]
"They call it an implicit guarantee for a reason. "
Indeed. The same wording is on the FNM/FRE MBS and the gov't came in and backed them. Also...
Fitch: rising GSE repurchase claims hitting regional banks
http://reut.rs/OvTTyd
June ISM Manufacturing Index: 49.7 vs. 52.0 consensus and 53.5 prior. Prices index 37.0 vs. 47.5 prior. Employment 56.6 vs. 56.9. Inventories 44.0 vs. 46.0. New orders 47.8 vs. 60.1. [View news story]
June ISM Manufacturing Index: 49.7 vs. 52.0 consensus and 53.5 prior. Prices index 37.0 vs. 47.5 prior. Employment 56.6 vs. 56.9. Inventories 44.0 vs. 46.0. New orders 47.8 vs. 60.1. [View news story]
Wells Fargo (WFC) joins the list of banks adding fees where they can to make up for fee reductions mandated by Dodd-Frank. The bank plans to implement a $5/month fee for those checking accounts not maintaining a $1,500 balance or otherwise behaving as the bank wishes them to. [View news story]
Geesh! Why do so many think they should get free services just because they are doing business with a bank.
What To Do With A Profitable Fannie And Freddie [View article]
http://bit.ly/OUhNWE
Look at line 52. GSE stock - 65%. That is 65% of market value OR INTERNAL FAIR MARKET VALUE estimate. I wish I knew more about what that meant?? Does the GSE stock mean the preferreds. According to this chart further up GSE Bills /Notes/ Bonds are valued at 98 to 95% depending on duration. US Treasuries are 96 to 99% of value can be used for collateral. 'GSE stock' has to be either common or Preferreds I would think. No other common stocks are listed to be approved for collateral even for the likes of XOM, MCD. They won't take KO's Coke's stock. So I got to think they are talking about the preferreds. Hmm...When fannie and freddie went into conservatorship Treasury Sec Paulson said they would work with the banks;
"The agencies encourage depository institutions to contact their primary federal regulator if they believe that losses on their holdings of Fannie Mae or Freddie Mac common or preferred shares, whether realized or unrealized, are likely to reduce their regulatory capital below "well capitalized." The banking agencies are prepared to work with the affected institutions to develop capital restoration plans consistent with the capital regulations."
Paulson's speech 9/07/08;
http://cnnmon.ie/ML6daH
If you look at the historical volume of some of the less popular preferred issues it appears they was never a big rush to unload them. On an issue like FMCKI with 20 million shares outstanding, total volume for the first two months after conservatorship was only about 6 million shares. Is it possible that some banks are still holding and the Federal Reserve is letting them value them at some kind of adjusted "internal" value.?
Crude oil will fall below $80 in June, with tropical storms and hurricanes the only potential catalysts that could send prices higher, ValuEngine.com's Richard Suttmeier says. If he's right, $79 crude would not only mark a seven-month low but also complete a 30% plunge from February's $110 top. [View news story]
The three board members who oversaw risk at JPMorgan (JPM) were notable for their lack of experience at managing risk at financial institutions. The Bank of Dimon is the only one of the TBTF crowd that doesn't have someone a bit closer to the industry on its risk committee. [View news story]
This probably doesn't mean much to many but this is interesting to me. BlueMountain Capital is the only hedge fund on the government executive order mandated Counterparty Risk Management Policy Group (CRMPG). The CRMPG is charged with monitoring the debt and credit exposure of all the major banks - Risk management. The two names connected looked too similar to me so I googled them together. Among other things I found this guy on Linked-in. A portfolio manager for BlueCrest use to be a senior analyst at BlueMountain, and an executive director at Goldman Sachs. Ya think both BlueMountain and BlueCrest had insider information to screw JPM on these trades?
Oh, BTW, from BlueCrest's website;
The two founders of BlueCrest Capital Management, Michael Platt and William Reeves (now retired), were both Managing Directors and senior proprietary traders at JP Morgan, who left to establish BlueCrest in 2000. BCMLLP is fully owned by its principals.
Valuing Facebook Against Its Peers: Can A Case Be Made For The Stock? [View article]
Rents are surging from New York to L.A., as the average monthly U.S. rent for apartments hit an all-time high $1,008 in Q1. It makes sense: Demographics are favorable for rentals as a large cohort moves into the 25-to-35 age group, people who have lost their homes to foreclosure or short sales turn to renting, and some people have probably stopped doubling up. [View news story]
ICSC Retail Store Sales: +0.8% W/W, vs. -1.0% last week. +3.6% Y/Y, vs. +3.2% last week. The rise in sales is attributed to warm weather, receding gas prices, and improving confidence among high-income households. [View news story]
...and...but mostly inflation.
Intuitive Surgical Remains A Hidden Gem [View article]
"There is significant evidence (QE) has caused collateral damage to pensioners, savers, and pension funds," writes Saga Group Director-General Ros Altmann, applauding the U.K.'s Treasury Select Committee demand that the BoE justify its "massive monetary experiment ... Forcing gilt yields lower is not a remedy for economic recovery." [View news story]
Intuitive Surgical Remains A Hidden Gem [View article]
U.S. Bancorp (USB +1%) and Comerica (CMA +5.2%) each posted Q1 earnings gains of more than 25% (I, II), thanks to increased lending and lower credit costs and loan-loss provisions, offering a bullish take on the economy and reinforcing the notion that smaller, regional banks are recovering more strongly from the financial crisis than the giants. [View news story]
Shares of Apollo Residential Mortgage (AMTG) trail off 5.8% premarket after the firm discloses a public offering of 13.9M shares of its common stock. The company says that it plans to use the proceeds to buy a variety of mortgage-backed securities. [View news story]
NAV is 19.92. Management would be crazy to price the new shares so much below NAV and screw current holders.
JMO