Category Archives: bonds and loans

GM’s Whining Bondholders

Andrew Ross Sorkin takes aim at GM’s bondholders today: Not three hours after the president spoke on Monday I received an e-mail message from a group representing G.M. bondholders — people who are likely to have an enormous influence over … Continue reading

Posted in bailouts, bonds and loans | 48 Comments

The Kanjorski Meme, Mark II

Tyler Cowen is now talking about the Kanjorski Meme Mark I (I thought I’d dealt with that one already) — but that’s not the end of the story, as Sam Jones demonstrates today. Sam has what you might call the … Continue reading

Posted in bonds and loans, Politics | 2 Comments

Auto Financing Datapoint of the Day

Alex Kellogg reports: AutoNation Inc., the largest chain of auto dealers in the U.S., in December secured only 22 auto loans for car buyers from Chrysler Financial and nine from GMAC, down from 823 and 1,527 a year earlier, respectively. … Continue reading

Posted in bonds and loans | 1 Comment

Let the Government Buy Corporate Bonds

What’s the difference between spending hundreds of billions or even trillions of dollars on loans, on the one hand, and loaning out the money directly, on the other? All of the "bad bank" proposals have one thing in common: that … Continue reading

Posted in bonds and loans, derivatives | 1 Comment

Partial Defaults

Can we please stop using the term "partial default"? It annoys me, mainly because nobody has a clue what it means. Jean Pisani-Ferry, for instance, on the subject of Greece, talks about "a vicious circle in which its debt would … Continue reading

Posted in bonds and loans | 1 Comment

Fragmented Bondholders

During the Great Moderation, institutional fixed-income investors had boring, if lucrative, lives. They’d buy paper, clip coupons, and make money. Now, however, faced with a stream of high-profile defaults, they’re going to have to start justifying their former paychecks by … Continue reading

Posted in bonds and loans | 1 Comment

Sovereign Default: A Conversation

I’m trying out an experiment, here: Paul Kedrosky and I will be chatting live on the subject of sovereign defaults. Feel free to join in!

Posted in bonds and loans, emerging markets | Comments Off

TED Spread Datapoint of the Day

‘Cos we all need some good news today: The TED spread is now in double digits! I wonder how much credit for this is going to be taken by Neel Kashkari. Me, I just call it the moral hazard trade.

Posted in banking, bonds and loans | 1 Comment

Crazy Ecuador

A couple of major developments on the Ecuador front: yesterday, finance minister Elsa Viteri came out with the rather stunning decision that the country would make the coupon payments on its 2015 global bonds — despite deciding to default on … Continue reading

Posted in bonds and loans, emerging markets | 1 Comment

Tribune Implosion Datapoint of the Day

How low can recovery rates go? Today the CDS auction on Tribune’s defaulted bonds settled at 1.5 cents on the dollar, which is low but in line with expectations of bondholders essentially getting nothing once the secured creditors have been … Continue reading

Posted in bonds and loans, derivatives, Media | Comments Off