Things That Scare Me: Failed Bond Auctions
This can be a frightening place and time.
The following is a list of things that scare me:
- That Justin Rohrlich, the driving voice of Hoofy and Boo, accepted my challenge at last night's MV Staff Feast and ate five large cupcakes in five minutes for $500. And he's still not in…
- UBS (UBS), the second-biggest underwriter of auction-rate securities, will no longer buy deals that fail to attract enough bidders, joining a growing number of dealers stepping back from that $300 billion market.
- The largest underwriter of those instruments is Citigroup (C).
- According to a report by Bank America (BAC), 80% of all auctions of bonds sold by cities, hospitals and student loan agencies were unsuccessful yesterday.
- That, Minyans notwithstanding, Mom and Pop retail won't know about this until it's too late. Just like the subprime.
- Carnies. Circus folk. Nomads, really. They've got small hands and smell like cabbage.
- Yesterday was the first three day winning streak in the S&P since December. The last time we saw this sorta tri-fecta, it was right before a waterfall decline. (Thank you Prof. Cooper!)
- Baidu $300 (BIDU), particularly the first test after a spike.
- That MBIA (MBI) CFO Charles Chaplin just said that the world's biggest bond insurer is equipped to survive the housing slump and dismissed suggestions that the industry needs a rescue or stronger federal oversight.
- The two-sided risk that is a function of the fate of these bond insurers.
- That Moody's said it would complete its review of the bond insurers in mid- to late-February and it's now mid-February.
- The likelihood that societal acrimony will manifest as we draw closer to the election.
- As geopolitical tensions spread from the
Middle East to Russia to Venezuela.
- What risk appetites will look like when the other side of zero percent financing comes home to roost.
- What my appetite looks like after tossing a few back with my Minyan family.
- The serendipity that Big Ben will chime on the anniversary of the St. Valentine's Day Massacre.
- Angelo Mozilla's tan.
- We can rally another 600 points in the DJIA and still be entrenched in the negative pattern of lower highs.
- My Raiders.
- Over the last three sessions, the S&P 500 is up 3% and the broker dealer index is flat.
- The notion that a man could run into his wife at a brothel!
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
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