Social Security is sitting on a $2.8Tn portfolio of T Bills and Notes. Take a guess on how much of that was ‘turned over’ (redeemed/acquired/matured) in June of 2013? $600 Billion! 22% of the nut went back and forth in a single day. That blows my mind. A pic of the “transactions” that took […]
I’ve been waiting four years for a lawsuit against the government and its handling of Fannie Mae and Freddie Mac. Perry Capital, a hedge fund who has invested in Agency Pref stock, filed the suit on Saturday. A heavyweight law firm, Gibson, Dunn & Crutcher (GDC), is handling the case.
I’m at a loss to explain what happened in the Chinese money system the past few weeks. Yes, the tip of the iceberg was the Wealth Management Products that matured in June. And yes, it’s likely that things will cool down for a bit. But the guys at Deutche Bank see more trouble ahead.
The TIPS market has told an interesting story the past month. The implied inflation rate has collapsed. As of this morning, the market is pricing inflation at 1.94%%. A few month ago it was 2.5%. The market is saying that when QE is in full force, with no end in sight, inflation […]
Lost in last week’s Taper Talk and generally bad markets was a development that I think has some legs. The Swiss Parliament basically told the US Department of Justice to fuck off. I’m very surprised by this outcome – I would have bet against this result. There will be repercussions.
So I was a party over the weekend. Some of us were on the porch sucking down Mojitos and talking money. Everyone had something to say about the Taper.
How about Fannie’s stock of late? The low-high for May saw a 660%% swing. There were several days of +200Mn shares crossing hands. The stock fell off a cliff at $5.40 and 36-hours later it was back down to $1.75. Some guys made a killing, others lost their shirts. I think 99% of what […]
The Social Security Trust Fund has come out with its annual report. Some have looked at it and concluded that the relatively stable conditions at SS the past year is evidence that all is well. There are many headlines like this these: I don’t see all the “good news” that folks are […]
I got an email from a friend who runs money for a hedge fund that got my interest: may want to take a look at convexity vortex in mbs market and implications… “Convexity vortex’? What’s that about? A bit more from this fellow, I’ll call him ‘MP’: Some familiar with it say the…
In February, when Ben Bernanke gave his report to Congress, he spoke of his concern about “Excessive risk taking”. On May 10 he repeated his warning: