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 email@example.com.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter