{"id":4406,"date":"2008-12-10T22:45:22","date_gmt":"2008-12-11T02:45:22","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=4406"},"modified":"2008-12-10T22:45:22","modified_gmt":"2008-12-11T02:45:22","slug":"december-10-2008","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=4406","title":{"rendered":"December 10, 2008"},"content":{"rendered":"

This is funny. Goldman is being criticized for advising shorting municipal credit<\/a> (via credit default swaps):<\/p>\n

It\u2019s \u201cdisturbing\u201d to advise investors to bet against the financial health of a state whose bonds Goldman helps sell, Assemblyman Gary S. Schaer, a Democrat who chairs the Financial Institutions and Insurance Committee, said last week in a letter to Chief Executive Officer Lloyd C. Blankfein.<\/p>\n

\u201cNew Jersey needs to maximize its presence in the credit markets, not to see its presence undermined.\u201d Schaer wrote.
…<\/b>
As part of a September presentation to institutional investors on \u201cBest Long and Short Risk Strategies,\u201d Goldman recommended buying credit-default swaps on \u201ca basket of liquid State General Obligation credits with current and worsening fiscal outlooks,\u201d including California, Florida, Nevada, Ohio, Wisconsin and Michigan.<\/p>\n

The firm also recommended the derivatives on states with \u201csignificant unfunded pension\u201d and other retiree obligations, including Illinois, Connecticut, Hawaii, New Jersey, Massachusetts and Nevada.<\/p>\n

The practice of betting against such states is \u201cdistasteful,\u201d said Frank Hoadley, Wisconsin\u2019s director of capital finance in Madison.<\/p><\/blockquote>\n

Didn’t we do the whole “analyst independence” thing a few years ago? However, the original Newark Star-Ledger story<\/a>, while attempting to sell newspapers, is better balanced than Bloomberg’s efforts.<\/p>\n

I do apologize … but I am YET AGAIN neglecting to present the price-movement and volume-highlight tables. At some point, perhaps, I will have caught up on other committments – but not tonight.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n
Note that these indices are experimental; the absolute and relative daily values are expected to change in the final version. In this version, index values are based at 1,000.0 on 2006-6-30.
The Fixed-Reset<\/i> index was added effective 2008-9-5 at that day’s closing value of 1,119.4 for the Fixed-Floater<\/i> index.<\/strong><\/td>\n<\/tr>\n
Index<\/td>\nMean Current Yield (at bid)<\/td>\nMean YTW<\/td>\nMean Average Trading Value<\/td>\nMean Mod Dur (YTW)<\/td>\nIssues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\n0<\/td>\nN\/A<\/td>\nN\/A<\/td>\n<\/tr>\n
Fixed-Floater<\/td>\n7.50%<\/td>\n7.85%<\/td>\n93,464<\/td>\n12.74<\/td>\n6<\/td>\n-4.0589%<\/td>\n705.4<\/td>\n<\/tr>\n
Floater<\/td>\n9.56%<\/td>\n9.85%<\/td>\n72,723<\/td>\n9.52<\/td>\n2<\/td>\n+3.0634%<\/td>\n371.0<\/td>\n<\/tr>\n
Op. Retract<\/td>\n5.46%<\/td>\n6.42%<\/td>\n146,946<\/td>\n3.97<\/td>\n15<\/td>\n+0.7500%<\/td>\n990.9<\/td>\n<\/tr>\n
Split-Share<\/td>\n6.95%<\/td>\n13.38%<\/td>\n73,707<\/td>\n3.95<\/td>\n14<\/td>\n-0.1942%<\/td>\n887.0<\/td>\n<\/tr>\n
Interest Bearing<\/td>\n9.69%<\/td>\n20.82%<\/td>\n55,306<\/td>\n2.78<\/td>\n3<\/td>\n-0.2190%<\/td>\n756.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n7.79%<\/td>\n7.92%<\/td>\n212,362<\/td>\n11.50<\/td>\n71<\/td>\n+0.0649%<\/td>\n709.9<\/td>\n<\/tr>\n
Fixed-Reset<\/td>\n6.02%<\/td>\n5.38%<\/td>\n1,081,559<\/td>\n14.48<\/td>\n16<\/td>\n+0.5017%<\/td>\n995.8<\/td>\n<\/tr>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

This is funny. Goldman is being criticized for advising shorting municipal credit (via credit default swaps): It\u2019s \u201cdisturbing\u201d to advise investors to bet against the financial health of a state whose bonds Goldman helps sell, …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-4406","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4406"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4406\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}