Financial News
Taper takes aim at MBS
With a fall Fed taper looking likely, worth revisiting this Bloomberg piece on the MBS Whale: The coming unwind of the Fed $1.75 trillion MBS portfolio… Time to watch MBS spread contraction reverse… The effect will not be linear…
Posted in Financial News, Uncategorized
Reinsurance deal still looks sweet for Buffett
With AIG ponying up it’s $10 billion sweetener last week, it’s worth looking back at the original terms of the its reinsurance deal with Berkshire Hathaway … The liabilities took like a $34 billion vertical slice of AIG’s P&C risk… BH gets $10 billion to invest… AIG pays the first $25 billion of claims… BH […]
Landline co. struggles
It’s very tough to manage a declining business… Frontier is experiencing this, having consolidated much of the landline telephone world using leverage… Drew FitzGerald of the Wall Street Journal has the story: This Telecom Bet Big on Landlines…And Lost
Keep an eye on the 10-year
Remember Guggenheim CIO Scott Minerd in Bloomberg: 3% on UST 10 year would be the turning point for end of bond bull market…”Might” have recession in 2019 or 2020… Guggenheim has access to whatever economic information is available on a global basis… The interview shows how difficult it is, even for them, to call the […]
Greenwich housing looking soft
Bloomberg take on Houses in Greenwich, Connecticut: Discounts are starting to be taken in the high end… One of many bellwethers of high-net-worth liquidity and sentiment…
Sage of Omaha squares off against Elliott
A fascinating bankruptcy battle is likely to unfold in Energy Future Holdings… The crown jewel is the 80% stake in Oncor, the Texas utility… Warren Buffett wants to buy; he rarely raises his bids… Paul Singer holds the blocking position; he rarely gives up… The Texas PUC is the Kingmaker… The Wall Street Journal has […]
Why Trump will struggle to recreate go-go ’80s
Worth revisiting this thoughtful opinion piece by Morgan Stanley strategist Ruchir Sharma on the real factors behind economic growth… Demographics are destiny…
Reading between the lines on bullish econ news
Greg Ip, veteran columnist for the Wall Street Journal, is using the R Word = Recession… All the preconditions exist…Why Soaring Assets and Low Unemployment Mean It’s Time to Start Worrying…
Fed focus is on inflation
Wall Street Journal’s Heard on the Street deconstructs the latest Fed minutes… Inflation continues to be too low, making the Fed nervous… Watch What They Say – Fed Gets Worried…
For Fed, it’s not if, but when
More details on the coming Fed taper… There is a debate within the Fed as to whether to start in September or December… But there is no debate about starting this year… Binyamin Appelbaum of the New York Times reports in Fed Officials Are Divided Over When to Reduce Its Debt Holdings…
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