$92.17 Is Actually Far More Than MER Employees Are Going To Get So Scratch Them From The List Straightway


The Wall Street Journal’s question of the day today is “What size bonus do you expect to get this year?” One response was: “I do get a bonus, and it will be much larger than last year’s owing to both company and individual performance ratings, plus a promotion.” Another: “Bonus??? What bonus??? Not sure if $92.17 counts as a bonus.” Clearly the first came from a second-year at Goldman, well-practiced in the fine art of touting the Goldman name, engaging in auto-fellatio and typing all at the same time. But what of the second? The options seem limitless. Obviously we could simply peg it to a MER employee and call it a day, but let’s think outside the box for a second. It could be someone from BSC. It could be Sowood Capital manager Jeff Larson. You people have the resources to nail this one.
What size bonus do you expect to get this year? [WSJ]



John Cryan Tells Deutsche Bank Employees That There Are Far Too Many Of Them

The most beloved boss in finance is ready to replace about half of his people with robots.

So Maybe Greek CDS Will Be More Than Fine?

Gaaaaaaaaaaaaaaaah Greece. Okay so all systems appear to be go on the Greek debt exchange, which means its time to decide What This Means, and, I just. Really. Greece. Come on. All I want is to talk about 13D reporting requirements, and now I have to pay attention to Portugal? No. Just no.* Still here is arguably a fun factoid: On Wednesday, Swiss bank UBS AG started quoting a "gray market" in new Greek sovereign bonds ... using as a guide details of the debt swap Greece has put on the table for private investors to accept until Thursday evening. The "bid" price for a batch of future Greek bonds due in 2042, or the highest price the dealer was willing to pay, was around 15 cents on the dollar; the "offer" price, or the most the dealer was willing to sell at, was 17 cents on the dollar, the first person said. ... The prices quoted by UBS imply that losses private creditors to Greece will take are more like 79% of face value, not the original haircut of 70-75% many had expected. Yeah but. If you believe this horrible CDS mechanics stuff that various people including me have been yammering about for weeks - here is the best explanation - that means that if for some reason you had the foresight to be long Greek bonds and hold CDS against them you'd end up with a package worth (1) 21 on the bonds and (2) 83 on the CDS (assuming that the 17 offer for the 2042 bonds represents a real price for the cheapest-to-deliver new bond in the Greek auction) for (3) 104 total which is (4) more than par, so you win this particular game, yay. Which you were at risk of losing - a week ago one of our fearless commenters spotted the longest new bonds at 25ish vs. 24ish for the old-bond-y package, for a total of 99 for the hedged holder - losing 1 point versus par.**