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Posts tagged ‘Moody’

U.S. Bond Market, The Greatest Hoax Ever Perpetrated on Mankind

By: Rob_Kirby

A few years ago, when J.P. Morgan grew their derivatives  book by 12  Trillion in one quarter[Q3/07] – I did some  back of the napkin math – and figured out how many 5 and 10 year bonds the  Morgue would have necessarily had to transact on their swaps alone – if they  are hedged.  The bonds required to hedge the growth in Morgan’s Swap book were 1.4 billion more in one day than what was mathematically available to the entire domestic bond market for a whole quarter?

Put simply, interest  rate swaps create more settlement demand for bonds than the U.S. issues.

This is why U.S.  bonds “appear” to be “scarce” – which the bought-and-paid-for mainstream  financial press explains to us is “a flight to quality”.  Better stated, it’s a “FORCED FLIGHT [or  sleight, perhaps?] TO FRAUD”.

Assertions that netting “explains” this incongruity are a NON-STARTER.   Netting generally occurs at day’s end – the math simply does not even  work intra-day.

Further  Evidence of Gross Malfeasance in the U.S. Bond Market

Back in 2008, at the height of the financial  crisis, folks are reminded how the Fed and U.S. Treasury were unsuccessful in  finding a financial institution to either acquire or merge with Morgan Stanley.  Unfortunately, Morgan Stanley’s financial  condition has continued to deteriorate:

Analysis: How Morgan Stanley sank to junk pricing

REUTERS | June 1, 2012 at 5:45 pm |

(Reuters) – The bond markets are treating Morgan Stanley like a  junk-rated company, and the investment bank’s higher borrowing costs could  already be putting it at a disadvantage even before an expected ratings  downgrade this month.

Bond rating agency Moody’s Investors Service has said it may cut  Morgan Stanley by at least two notches in June, to just two or three steps  above junk status. Many investors see such a cut as all but certain

full article at source: http://www.marketoracle.co.uk/Article35164.html

Irish house prices to fall by another 20pc warns rating agency Moody’s via @independent_ie

Irish house prices to fall by another 20pc warns rating agency Moody’s via @independent_ie.

Ratings agency Moody’s has said Ireland’s rate of mortgage arrears could be as high as 13.99%, and that house prices will fall by a further 20%.
Last month, the Central Bank said that 10% of mortgages were in arrears.
However, Moody’s said today that this figure is already out of date and that 100,000 mortgage holders are now behind in their payments.
13.99% of mortgages are three months behind in their payments (from 11.98% in January) and 4.23% are in default.

see more at :http://www.irishexaminer.com/breakingnews/ireland/almost-14-of-mortgages-in-arrears-house-prices-due-to-drop-20-moodys-555466.html

 

Anglo Irish Bank is dragging us all down!

 
Wednesday, September 29 · 12:30pm – 2:30pm

Location St Stephen’s Green


Created By

More Info The Right To Work Campaign will be joining the Irish Trade Union Congress protest at the Dail on Wed September 29th- we will be marching from Anglo Irish Bank at 12 noon and then joining the Congress protest at the Dail at 12.30pm.Sept 29th is the 1st day back for the Dail and is also the 2nd anniversary of the banking guarantee.The 23 Billion we gave Anglo Irish Bank is enough to employ everyone on the Live Register for 3 years on 33,000 a year!Get this government out!
No more Anglo Irish Bailouts!
We want jobs and services!
Stop the Cuts!For leaflets and posters contact 0872604143Let’s make this a real focus for all the anger out there against this incompetent government!

 

Comment:

 As a non-aligned and  advocate for the middle ground and free enterprise I strongly believe that the support the government is giving this corrupt and clearly bankrupt private Bank in not the responsibility of the Irish Taxpayers and I also firmly believe that the Irish government has created a fatal disaster for the country by bailing out their friends .One has to now ask questions why this disastrous course was ever taken .This stinks to high heaven and fraud is written all over this action by lenihan and Cowen  .

This must stop now and criminal charges must be brought against the architects of this national disaster.

The Full story has still to come out from the Allied Irish Banks and Bank of Ireland again I call on them to come clean on their derivatives positions.

I intend to go to this demonstration to-morrow as

 I believe we in the middle ground should be seen and on the ground and we need to become vocal otherwise we will be left behind nobody else will fight our cause and our cause is the peoples cause.

Now more than ever we need to stand united against this blatant attack on our democracy by the political elite and their cronies.

PS 

Anybody in Wicklow looking for a lift contact me at e-mail provided before 10.30  29.09.2010

 

 

 

Related Articles

Anglo debts: Is there no end to this hole?

Photo Machholz

Anglo Irish Cost May Exceed 35 Billion Euros, S&P Says

By Finbarr Flynn and Louisa Fahy – Sep 28, 2010 10:16

Anglo Irish Bank Corp.’s bailout may cost Ireland’s government more than 35 billion-euro ($47 billion), Standard & Poor’s credit analyst Trevor Cullinan said, exceeding the rating company’s previous estimate.

“Estimates which were previously strongly against our 35 billion euro now seem to be coming in line with that recapitalization cost,” Cullinan said in an interview broadcast by Dublin’s RTE Radio today. “So the government’s kind of Plan B with Anglo means this 35 billion euros could even be exceeded.”

Ireland’s financial regulator is due this week to release an estimate for recapitalizing the state-owned lender as it’s split into a deposit bank and an asset-recovery unit. Irish bonds dropped today, pushing the extra yield that investors demand to hold the country’s 10-year debt over German bunds to a record 452 basis points.

“The sell-off seems to be triggered by the S&P remarks,” Fergal O’Leary, a director at Dublin-based Glas Securities, which specializes in fixed-income markets. “S&P’s previous estimate of 35 billion euros was at the upper end of market expectations. Any suggestion that this could be raised is a concern.”

S&P lowered Ireland’s credit rating to ‘AA-’ on August 24, warning of further possible downgrades. The ratings company said yesterday it doesn’t expect Ireland to default on its debts. Anglo won’t need more than 29 billion euros, two people with knowledge of the matter said last week.

Ratings

If the 35 billion-euro estimate is exceeded, “there potentially could be further downward rating actions from Standard & Poor’s,” said Cullinan.

Anglo Irish’s senior debt was yesterday cut to the lowest investment grade rating by Moody’s Investors Service, which said it may reduce the rating to junk unless the government guarantees bondholders against losses. Anglo Irish’s subordinated debt, guaranteed by Ireland’s government until Sept. 29, was downgraded to Caa1 from Ba1.

The Irish government appears to “remain resolute that there will be no renegotiation” with Anglo Irish’s senior bondholders, Goodbody Stockbrokers said in a note to clients today.

The cost of credit-default swaps to insure the senior debt of Anglo Irish rose 5 basis points today to a record 941 basis points, according to data provider CMA. The contracts have more than doubled since July, CMA prices show. Credit-default swaps on Irish government debt rose 31 basis points to 519, according to CMA.

Ireland’s ISEQ benchmark stock index declined 1.3 percent as of 10:15 a.m. in Dublin trading, lead by a 5.7 percent drop in Allied Irish Banks Plc and a 4.3 percent decline in Bank of Ireland Plc.

“It’s all about getting clarity on Anglo at the moment,” said O’Leary at Glas.

To contact the reporters on this story: Finbarr Flynn in Dublin at fflynn3@bloomberg.net; Louisa Fahy in Dublin at lnesbitt@bloomberg.net

Comment :

  “the senior debt of Anglo Irish rose 5 basis points today to a record 941 basis points,” 

 this is market speak for the Governments guarantee is just a lode of C*** and the markets are pricing in a Default of some kind

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