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Rubicon Associates is headed by a Chartered Financial Analyst with over 20 years of experience in the investment management industry focused on the analysis, investment and management of fixed income and preferred stock portfolios. Over the years, he has analyzed and invested in both public and... More
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  • GM - Hiding Behind The Shield They Made A Mockery Of

    Thanks for bailing us out, now #@%! off. The audacity. Is this what the administration wanted? Circumvent bankruptcy laws with your 363 sale and then hide behind the law you circumvented. Hopefully no UAW personnel were harmed.

    General Motors Co said it will ask a U.S. bankruptcy court to bar plaintiffs from proceeding with lawsuits against the automaker for claims related to any actions before it filed for bankruptcy in 2009.

    The plaintiffs have alleged that they bought or leased vehicles that contained an ignition switch defect.

    The defect has been linked to the deaths of at least 13 people and resulted in the recall of 2.6 million GM vehicles.

    In a filing with U.S. District Court for the Northern District of California, GM asked for a stay on litigation related to ignition claims until the court decides on a motion to consolidate the claims and the bankruptcy court rules on whether the claims violate GM's 2009 bankruptcy sale order.

    GM said it would shortly file a motion in the Bankruptcy Court for the Southern District of New York to enforce an injunction contained in its sale order, which the company said bars plaintiffs from suing the reorganized company for any claims related to the predecessor company.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: GM
    Apr 16 10:15 AM | Link | 3 Comments
  • Santander - Strength Affirmed

    Banco Santander (SAN) had their ratings affirmed by Moody's. Another sign that Santander is not singularly Spain and opportunities exist. Hopefully I will have an article out soon.

    Madrid, February 11, 2014 -- Moody's Investor's Service has today
    changed to stable from negative the outlook on Banco Santander S.A. (Spain)'s (Santander) Baa2 long-term senior debt and deposit ratings.

    Concurrently, Moody's affirmed these ratings. The change in outlook and affirmation of the Baa2 ratings follow (1) the affirmation of the bank's standalone bank financial strength rating (BFSR) at C- (equivalent to a baa2 baseline credit assessment (BCA)) with a stable outlook; (2) the gradual economic recovery in Spain; and (3) Moody's view that the group's risk-absorption capacity remains resilient despite ongoing asset-quality pressures.

    The change in outlook of Banco Santander's standalone C- BFSR to stable from negative prompted the outlook change on the long-term ratings. This reflects Moody's view that the downside risks to the bank's credit profile have substantially decreased because of the gradual economic improvement in Spain. Moody's takes comfort from Santander's strong earnings diversification, which will continue to offset expected ongoing negative asset-quality trends, as well as from the group's improved capitalisation levels and its ability to generate capital in times of stress. This should make Santander's credit profile sufficiently resilient against any further asset-quality pressures.

    WHAT COULD MOVE THE RATING UP/DOWN
    Any upward pressure on Santander's ratings is unlikely as long as the Spanish government's bond rating remains a Baa3 given that the bank is already rated one notch above Spain's government bond rating. However, even were the sovereign to be upgraded, Santander's standalone rating would need to balance the positive rating drivers stemming from its strong and relatively resilient earnings generation of its international activities with the continuing pressure stemming from its high stock of non-performing loans (including real estate and refinanced loans) and weakened profitability in its domestic market.

    Article here.

    Disclosure: I am long SAN, BBVA.

    Tags: SAN
    Feb 11 8:42 AM | Link | 1 Comment
  • DoubleLine - Fed Deflation

    Gotta love Gundlach.

    (click to enlarge)

    Dec 11 3:39 PM | Link | Comment!
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