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Ce n'est plus seulement le titre d'un roman d'Agatha Christie, c'est désormais la plus dangereuse crise de l'union européenne depuis le passage à l'euro (et depuis en fait 1992). Les ... [Link]
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jck [at]
aleablog [dot] com
January 8th, 2009 at 7:24 pm
Good to have you back.
After seeing this post on the Fed’s purchase, I checked to see if the bid helped Markit’s ABX indices. Strangely enough, all of Markits’ AAA indices dropped today, by 10%.
Here’s a very quick summary http://special—-k.blogspot.com/2009/01/fed-starts-buying-mbs-paper-markits-abx.html
Strange that you would see such a drop, anyone have any ideas why?
January 9th, 2009 at 12:42 am
Jon Jansen, at Across The Curve, has suggested one possible reason for the drop in ABX (http://acrossthecurve.com/?p=2416) — Citigroup has agreed to allow bankruptcy judges to alter loan balances. Nothing to do with the Fed’s purchase of MBS securities.
January 9th, 2009 at 6:32 am
I agree with John Jansen, Citi has agreed with lawmakers not to oppose a new law that would allow bankruptcy judges to alter the terms of a mortgage. This is not a good thing, it puts more uncertainty as to the value of mortgage paper, at least the ones not guaranteed by uncle sam.
The Fed is purchasing MBS, nothing to do with subprime and the link I put up shows they are buying “long” paper i.e 30 year, the objective being to manipulate conventional mortgage rates downwards.
January 9th, 2009 at 11:33 am
Mortgage bonds hit by cram-down legislation advance