Bill Gross thinks conditions are ripe for a liquidity crisis, and he points a finger at his old firm for its potential to be at the center of the storm.» Read More
Sanofi to Buy Genzyme. The price will be $20.1 billion— plus contingent value rights payouts for new drugs. [DealBook]
Madoff Busts Banks, Hedge Funds: They 'had to know;' were 'complicit'. [NY Times]
Goldman to shut down fixed income prop desk. [Bloomberg]
JPMorgan has three perfect quarters of trading—without a single negative day. [Bloomberg] Here are, perhaps, the key two sentences: "The perfect trading results are rare and were primarily driven by the Federal Reserve’s programs buying mortgage bonds and U.S. Treasury securities. That’s driven trading volumes higher, boosted asset values and provided backup liquidity in the markets, analysts say. " [Bloomberg | Hat Tip: Deal Breaker]
Speculation and myopia drive a new internet bubble. [Gigaom | Hat Tip Abnormal Returns]
Calling out Ferrari. [Jalopnik | Hat Tip: Felix Salmon] (I'm not exactly sure how this relates to Wall Street—but there's an allegory to be found somewhere. 'Tuning' numbers is a phenomenon we're certainly familiar with. Plus, it's about Ferarris)
President Obama focuses on US's long-term financial health—and calls for "adult conversation": Should we expect something more than punch lines involving 900 numbers? [CNN]
Slate's Annie Lowrey cleverly re-imagines our federal budget as a middle class household, where the federal government earns $60,000 a year—and spends $85,000. [Slate]
(Although you have to wonder: Why not pick $100,000 for either the income or outflow number? Isn't everything in the universe improved by decimalization and the use of a 100 point basis?)
NetNet contributors share how they spent Valentine's Day.
Many municipal bond investors who are shunning bearish forecasts of widespread defaults are relying on the fact that such a huge portion of the bonds issued are “general obligations” of the states and cities issuing debts. Historically, the default rate on general obligation bonds has been vanishingly small. Only 3 defaults have occurred since 1970.
That may change.
In many ways, this seems to be the perfect time to be buying municipal bonds. The yield on muni debt is now equivalent to the yield for treasuries, which means that investors can get the tax advantages of munis for free.
The headlines warning of a wave of defaults has scared away some buyers, potentially creating bargains. The default rate on munis remains microscopic.
Unfortunately, the bullish case for munis has a very frightening precedent. Two of the arguments for munis resemble those made for mortgages—just before the mortgage market melted down.
The budget battle lines have been drawn. The barbs are being thrown from both sides of the aisle and with hearings starting today on the President's budget, you know you can expect more verbal sparring.
But the politics play in front of the cameras, doesn't stop the reality that the continuing resolution on the government's authority to keep borrowing more will end on March fourth. Compromise from both sides of the aisle will be needed in order for a budget to pass.
I decided to get the perspective from Roger Altman, former deputy Treasury secretary, and Founder and Chairman of investment banking boutique Evercore Partners.
Hey Gang, my name is KooKoo and I have some knowledge to impart to the Startup Billionaire Class of 2011...
In case you don't remember me, in the late 90's I was the mascot for Clocks.com , one of the highest-flying companies of the first internet boom. Things didn't exactly work out so well—but we did get to burn through 400 million bucks trying. Anyway, my purpose in writing this is to save the Facebooks and the Twitters and the LinkedIns and the Groupons from ending up like we did. So if you're a social media entrepreneur or a startup investor poised to cash in on the Web 2.0 explosion, please remember the following as you go after your dream:
The most recent whale-watch filings at the SEC become more interesting when you contemplate not merely who is betting on what but who is betting against whom.
Looked at one way, the quarterly 13f documents at the Securities and Exchange Commission tell you who dumped financials, who bet on retail, who still is using metals to hedge against the ever-nearing threat of inflation.
Spiking inflation in the UK has just hit 4 percent —double the Bank of England's inflation target.
Coming on the heels of China's 5 percent inflation report , it isn't hard to see something of a trend.
So now we begin the guessing game: To what extent are the causal factors of inflation in the UK and China the consequence of specific national policies—and to what extent are they the result of broader global demand issues?
On Valentine's Day, New York Magazine ran a post describing the actress Rose McGowan's new beaux—with an attached photograph—but no name.
The gentleman in question is 6'6"—and claims to work in "finance something" whatever that means, according to Ms. McGowan.
(I say 'claims' for this reason: If I ever ran into Rose McGowan at a party, I might be tempted to say I ran a hedge fund. Journalism is a lot of fun—but it rarely impresses the starlets.)
So do you know this guy?
Have you ever seen him crunch a pivot table or toss back shots at a Brother Jimmy's?
If so, we'd love to hear from you.
Bill Gross thinks conditions are ripe for a crisis, and he points a finger at Pimco to be at the center of the storm.
If there was ever an argument for owning a broad portfolio of stocks, the first half of 2015 is Exhibit 1.
Monday's violent selloff could be the prelude to a more volatile second half, but strategists still expect the S&P 500 to gain.