Monday, July 25, 2011

Monday Links

"Space insurance rates are likely to fall further and coverage terms are likely to broaden this year..."

MPG Office Trust ($MPG) exchanges common stock for preferred.

Interesting FT profile: "Ryan Kavanaugh, would-be king of tinseltown"

The new "value" is in stocks that are too big or too difficult for Private Equity. Microsoft and Cisco both have cash adjusted PEs well below 10. They are too big. Target and Walmart are about 12 times earnings. Same story. The German family concerns could also be purchased at low levels.

There were way too many ships built, or contracted to be built, during the commodities/world-trade bubble.

Hussman: "The most likely window for a Greek (or other Euro-nation) default will be at a point when France and Germany are experiencing economic downturns sufficient to douse the political will to bail out their neighbors at a cost to their own citizens."

Important NYT profile of Sheila Bair (FDIC): "I was amazed when they saved [Bear Stearns]. I couldn't believe it. When they told me about it, I said: "Guess what: Investment banks fail.'"

A gold/CHF volatility convergence trade?: "Implied volatility in the Swiss franc-euro cross has blasted off in recent months compared to that in gold."

European banks are finding that the availability of financing is diminishing. Being limited to overnight borrowing is one of the steps before failure.

"Richard is cautious about China, however, contending that growth won’t necessarily translate into investment returns because of legal uncertainty and poor corporate governance."

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