T-Bill Prices Rally So Much On Uncertainty, Yields Touch Zero Want to loan the US Government money for 3 months? If you bought a 3 month T-bill yesterday, the annual yield you’d earn was .16%. (Notice the decimal place.) The 1 month bill is/was down to 0%. As one bond analyst said, “There’s a lot
Morgan Stanley
It was one year ago today that First Magnus threw in the towel. Hopefully all those folks have landed on their feet, either through StoneWater Mortgage or other lenders… INVESTMENT BANKS DOWNGRADE EACH OTHER “I’m a vegetarian not because I love animals, but because I hate plants.” Can’t investment banks just get along? Goldman Sachs
What coffee drinker doesn’t want to open up some market commentary and get a coupon for free coffee? (Gosh, I hope that I don’t get sued on this one!). FREDDIE MAC LOSES $821m, CUTS DIVIDEND Freddie Mac lost $821 million in the 2nd quarter after taking $2.5 billion in provisions for credit losses. Revenue fell
Morgan Stanley will be paid $95,000 to advise the Treasury Department on how to handle their new, self-imposed power to control Fannie and Freddie. This is a responsible move as the two firms own or guarantee half of all outstanding mortgages in the U.S., and since the private mortgage-backed securities markets are still seized up,
“People need good lies. There are too many bad ones.” So chimed in Kurt Vonnegut. Many foreign investors feel cheated by the rating agencies, who gave their triple-A stamp to various mortgage securities that turned out to be anything but triple-A. COVERED BONDS OVERVIEW Are “covered bonds” the answer? Touted as a new way for
We think that the credit crunch began in April 2007 when subprime lender New Century went under. Others think that the beginning was when two Bear Stearns hedge funds collapsed in June 2007. And most people think it began on August 1, 2007 when American Home Mortgage went down, and the credit markets froze up.
Lehman Brothers and Morgan Stanley have used the Discount Window to access funds, Lehman doing so Tuesday. Goldman Sachs may use the Discount Window later this week. This is a good sign following the Fed’s announcement Sunday that investment banks can now access the Discount Window as a lender of last resort. Previously it only