Dealbreaker

Entry: Citi: We’ve Run Out Of Suckers On The Outside, Any Takers In Here?

posted by IA

Mar 28, 2008 1:35PM

I had this offered to me at Morgan Stanley as an analyst two years ago, so I don't think this is anything groundbreaking.

It does make you think about whether it's wise for an institution to have assets whose quality is linked to the continuing employment of their own employees. Presumably there's a big slug of correlation there - the moment the bank goes down and the employees start losing their jobs, the mortgages are going to be worthless, thereby hitting the asset side of the balance sheet, thereby causing more employees to be let go, etc.

I assume that there are few enough of these Citi mortgages that it's not that big of a deal, though.

Entry: If You Have To Ask, You Can't Afford It

posted by IA

Apr 21, 2008 11:51AM

Has anyone from SNL remained funny past the age of 45, aside from Bill Murray?

Entry: Portfolio Columnists Should Not Throw Stones

posted by IA

Apr 24, 2008 3:52PM

It's not a good sign when Muffie's author bio is longer than the actual post.

I miss Carney.

Entry: PIK Toggles And The Credit Crisis.

posted by IA

May 19, 2008 2:02PM

That's pretty much the definition of a negative-convexity investment, no? When times are bad, you stop getting cash out of the trade as the PIK begins to toggle. When times are good the sponsor makes a 40% IRR and you get your modest fixed income return.

Entry: Amex Encourages Employees To Fire Each Other

posted by IA

Aug 06, 2008 4:34PM

That was a test. If you know exactly how many men are in the show's title, you fail like #1 did.

Entry: Spread 'Em

posted by IA

Sep 24, 2008 9:52AM

It's sort of nonsensical to even quote a level for U.S. CDS, because if the U.S. defaults, the global financial system is pretty much done anyway. It's like writing someone insurance on a massive meteor strike - who is going to be around to collect on the policy?

Entry: Spread 'Em

posted by IA

Sep 24, 2008 10:42AM

@16, Yeah, Bunning was a big douche yesterday! But he once pitched a no-hitter and also struck out 3 guys in one inning on nine pitches.

Obviously that qualifies him to draft legislation.

Entry: No Bailout

posted by IA

Sep 29, 2008 3:07PM

@60 - Walmart is going to put up awesome numbers . Did you take Econ 1? Walmart sells inferior goods. We're in a recession. You do the math.

And in case you didn't take Econ 1, let's just say WMT is up 25% YTD (vs. -22% YTD for the S&P) and leave it at that.

Entry: Morgan Stanley Takes Page From Stamford's Play(a)book

posted by IA

Oct 22, 2008 3:44PM

Rumor is that Mack funded the Canolis by selling a 20% equity stake because the pastry store wouldn't face MS as a credit counterparty.

Entry: No One Wants To Buy Your Drugs, Louis

posted by IA

Oct 24, 2008 9:02AM

I love all of Lewis' books, but his bloomberg columns are absolutely insufferable.

Entry: Maybe He Really Did Want To Focus On MGM

posted by IA

Oct 29, 2008 2:05PM

Gas prices? Seriously? You mean the gas prices that have fallen $1/gallon in just the past month?

Entry: JANA

posted by IA

Nov 05, 2008 3:24PM

Nov. 5 (Bloomberg) -- Clarium Capital Management LLC, the
hedge-fund firm run by PayPal co-founder Peter Thiel, slumped
18 percent in October, its biggest monthly decline, because of
losses on bonds.
The firm's Clarium LP fund reported a year-to-date loss of
about 3 percent, wiping out the 58 percent gain it made in the
first half, according to estimates given to investors.

Entry: Someone's Having A Holiday Party This Year!

posted by IA

Nov 12, 2008 1:05PM

Isn't that the fund that invests in adult diapers and in JO&C paraphernalia?

Entry: At Least He Was Planning Ahead!

posted by IA

Dec 09, 2008 11:12AM

@2: idiot

Entry: Say It To His Face

posted by IA

Dec 18, 2008 1:15PM

@10 - This is definitely the work of a flamer