Most Clicked SIFMA SmartBrief Stories
1. Study: More than half of municipal bonds in delinquency for disclosure
SIFMA SmartBrief | Sep 03, 2008
A study released Tuesday by DPC Data shows that the secondary market for municipal bonds is flawed, according to DPC President Peter J. Schmitt. The study found that more than half of the bonds sold between 1996 and 2005 are delinquent in filing financial disclosures. More than a quarter of the bonds sold during that time are in chronic delinquency. Bond Buyer, The (subscription required) (09/03)
2. S&P: End may be in sight for subprime losses
SIFMA SmartBrief | Sep 05, 2008
Mark Adelson, chief credit officer at Standard & Poor's, said losses on subprime-mortgage bonds, including collateralized-debt obligations, would likely hit about $550 billion. Financial institutions have written down more than $500 billion in holdings, making Adelson's projection a signal that most of the damage has already been taken into account. Bloomberg (09/04)
3. Price dispute threatens Merrill's sale of loans
SIFMA SmartBrief | Sep 04, 2008
Lee Chol Hwi, CEO of Korea Asset Management, said negotiations to buy a substantial amount of loans from Merrill Lynch may fall through because of a disagreement over price. "We have yet to reach an agreement because of differences in assessing the value of assets," Lee said. "We have been seeking to buy a significant amount, but a deal may be difficult at this rate." Bloomberg (09/04)
4. Pimco's Gross says company will refuse bank offerings
SIFMA SmartBrief | Sep 05, 2008
Pacific Investment Management's legendary bond investor Bill Gross said his firm won't participate in bank offerings in the near future because institutional buyers are full, with only small investors left to pick up the remains. ClipSyndicate (09/04) CNBC (09/04)
5. KDB acknowledges it might invest in Lehman Bros.
SIFMA SmartBrief | Sep 02, 2008
The CEO of Korea Development Bank has confirmed that the bank is negotiating with Lehman Bros. about possible investment in the investment bank. KDB's new chairman, Min Euoo-sung -- formerly head of Lehman Bros. in Korea -- said that the U.S. subprime meltdown had created opportunities for the Korean bank to expand overseas and that he was seeking takeover opportunities. Financial Times (09/02) Bloomberg (09/02)
6. Commentary: Challenges exist for U.S. covered-bond market
SIFMA SmartBrief | Sep 03, 2008
Although covered bonds make up a substantial asset class in Europe, there is no equivalent in the U.S. Treasury Secretary Henry Paulson is pushing for the market as an alternative funding source for domestic banks. Ajay Rajadhyaksha, head of U.S. fixed-income strategy at Barclays Capital, explains the opportunities and challenges that face a covered-bond market in the U.S. Financial Times (09/02)
7. Fed official: Institutions must be allowed to fail
SIFMA SmartBrief | Sep 02, 2008
Economies work best when institutions are allowed to fail, Thomas M. Hoenig, president of the Federal Reserve Bank of Kansas City, said Monday. The comments, delivered during a speech in Buenos Aires, come after months of debate over the Fed's role in stabilizing financial markets. "Financial crises will occur despite our best efforts to prevent them," Hoenig said. CNBC (09/01) New York Times, The (09/01)
8. Paulson's advisers suggest cutting some inflation-linked bonds
SIFMA SmartBrief | Sep 03, 2008
The Treasury Borrowing Advisory Committee, which comprises officials from more than a dozen investment firms, advised U.S. Treasury Secretary Henry Paulson to eliminate the five-year Treasury Inflation-Protected Securities. The group said the bonds -- touted by former Treasury Secretary Robert Rubin as a way to reduce borrowing costs -- have cost taxpayers billions. Mihir Worah of Pacific Investment Management argued that such a move is shortsighted. Bloomberg (09/02)
9. Lehman considers moving troubled assets to spinoff bank
SIFMA SmartBrief | Sep 05, 2008
Lehman Bros. Holdings is looking into a plan in which it would shift billions of dollars in real estate and commercial mortgages to a new company, tentatively nicknamed Spinco, that would later be spun off, sources said. The strategy is similar to the good bank-bad bank model used in previous crises. "The model helps banks get on with their real business, focus on their strengths, after they put the bad assets aside," said Michael Bleier, a lawyer at Reed Smith who helped Bank Mellon spin off bad assets in the 1980s. "We'll see it being used again during this crisis." ClipSyndicate (09/05) Bloomberg (09/04) New York Times, The (09/05)
10. Renminbi surpasses dollar as Asia's most popular currency
SIFMA SmartBrief | Sep 02, 2008
The renminbi is Asia's most popular currency for fixed-income corporate funding, surpassing the dollar for the first time. The shift reflects recent weakness in the dollar. "In the early part of the year, people were concerned about the strength of the dollar. Investors were more interested in having an asset in an Asian currency," said Nicholas de Boursac, managing director of ASIFMA. Financial Times (09/01)
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Companies in the news
- CME Group Inc.
- China Resources Enterprise Ltd.
- Commerzbank AG
- Dresdner Bank
- Lehman Brothers
- Lehman Brothers Holdings
- Morgan Stanley
- NYSE
- Nasdaq OMX Group Inc.
- STATE STREET
- Shinhan Financial Group
- The Bear Stearns Companies Inc.
- UBS
- Vanguard Group
- Westpac