MIKETRADER

Genworth Financial Enters Run Off Mode - Others to Follow?

DEAD WRONG ON THIS ONE TYLER.... GNW STOCK, PREF, BONDS HAVE SHOT UP SINCE YOU POSTED THIS... MAYBE THEY NEEDED YOU TO DO IT...

Citigroup and Berkshire Pricing Anomalies

ON CITI theres an ARB spread that will narrow while we get closer to expiration date, but the reason of the discount on the Public Pref. vs Citi Common is the repo rate also, example:

If you buy C.PRI @ 31.00 and sell 13.07 C @ 2.70 = 35.28

and on July 24 you convert your preffers you will gain on the spread minus the repo rate on shorting C with is like 60 to 100% anually so thats the catch!.

What I personally recomend is buy CITI ETRUPs: CPRF, CPRO especially if C goes to $3 you can shorT it and lock in a 3.5 dlls gain on each share, participating in the exchange.... and if you dont, your getting a hefty yield and large TCE as cushion.

Conversion of Citi's Preferred Shares Could Bring Stock Down Temporarily

Youre not taking in account the ARB play, when I recieve like most Arbs my citi commons in exchange of my CITI PREFS it will be netted out against my citi shorts, so I dont expect a significant downside. Range bound betweeen 2.90 to 3.50

Royal Bank of Scotland Reports Mixed Q1 Earnings

short the stock and buy the preferreds, this stock is way overdone and it will need more capital infusion in the coming months... I see a exchange offer in along the way...

BAC Preferred Exchange: Hardly Equitable

Go with MER TORPS are yielding a bit (north 9%) more than BAC trups and some are callable on 2011 and 2012 and there no reason to think that BAC wont fully meets this obligation now that they are fully merged....

BAC Preferred Exchange: Hardly Equitable

The BAC arb play was a bit lame, not so much meet to chew, one thing I dont get is why they exchanged first their lower coupon PREFs, I see the appraisal consideration from the holders of that securities and that affecting their willing to exchange their preferreds especially BACPRE, but for BOFA they are keeping a 8% and 7% coupon prefs instead of their 3 to 4% Prefs, I think CITI conversion exchange was better engineered.

BTW the CITI ARB play is still on, and you can still jump in on ETRUPS and TRUPS.

Citigroup Files to Increase Shares Outstanding to 60 Billion

we are nto sweating our gonads mate... were pretty happy with the increase means more arbitrage gains on further down the line CITI ETRUPS AND TRUPS.... if you had lock your profit in time, who cares if citi goes to 2 dlls again, "a battle is won before its even fought"....

BTW i dont know about that 100% repo rates, more like 6%, maybe change your broker....

A Summary of Q1 Bank Earnings: World, You Just Got Hustled

SO I ASK AGAIN... WHO ARE THY SHORTS?... DO YOU STILL HAVE MONEY??....

MAYBE THE WORLD GOT HUSLTED... BUT YOU GOT KILLED WITH THOSE SHORT!

SILLY ROOKIE

BAC Preferred Exchange: Hardly Equitable

well if you bought BACPRE @ $7 or BACPRL @ 400 which they were just a few weeks ago you made alot, but true is that there is some disparities between BAC pref exchange that Citi exchange, the later got a better deal that the first, which may seem odd given the fact that BAC is sorting the crisis a lot better than Citi.

Strange markets they are indeed were seeing atm... or shall I say innefficient?

Eight Reasons Bank of America Is Going to $20

KUDOS! TO YOU MATE!

Why This Rally Is Unsustainable

so hows your shorts?

Why This Rally Is Unsustainable

Depending on were you started shorting GS, JPM, MS, If you shorted them on March thinking with the old rationale that this stocks have more meet on their bones I must say OUCH!!, you shorted the dog with the least flees, (as W. Buffet says not all banks are created equall).... dont confuse trying to make a bear argument as trying to convice yor self to hold on to those shorts you got.

Its not what you know, but what you can prove, when investing be pragamatical, must rookie investor thing political analysis is the same as security analysis which it aint... most of what you say its true and its an outrage, but then again so what?

We Can't Rely on the Fed to Prevent Inflation

I am buying ZBs & ZNs ahead of FOMC meeting.... I think the markets is testing and underestimating the will of the FED on its QE approach.... I also think there’s an implicit ceiling on 10yr and 30 ry rates at 3% and 4% respectively, this with the purpose to keep mortgage rates down....

I don’t think the markets realize that you cannot mess with the FED and PIMCO on what they want the market to be.....

Buyer Beware: 30 Biggest Bankruptcy Risks

"Goldman Sachs Upgraded Ford Motor (F) To Conviction Buy, Says Won't Need Bailout"..... why buy the stock when you can buy their short term bond yielding +30%, I think FORD CORP. Short term bonds (2010-2011) are money good.

Also check MGM who might restructure its short term debt also yielding 30% and more.... and TXU bonds which W. Buffet bought at par I believe a year ago now are trading below 40 pts and yielding 27%.

Looking to Invest in Bonds in Troubled Times? Caveat Emptor!

Corp bond spreads have blown up, while you can get a bid at 60 pts the same broker is offering you that same bond at 70 pts.... so the dealers buys it from you at 60 and sells it 10 minutes later a 70 add 4 times leverage and you made 60% on invested assets.... thats why this vultures made so much money last quarter the benefitting on this spreads.....

Having said that, there alot of opportunities for wealthy individuals on single senior unsecured financials bonds and even senior subordinated bonds (most of the yielding north 8% and at 20% or more discount from PV), from MS, GS, JPM, even BAC and CITI senior bonds look attractive at the actual discount prices.... just dont go to long on maturities, 5 to 10 yrs mts have decent liquidity and should surge in price once uncertanity on the markets diminish and credit spreads narrow.....