Post Tagged with: "Morgan Stanley"
Morgan Stanley expects 10-year yields to rise 220 bps in 2010
Morgan Stanley’s piece on Treasuries Priced for Perfection…for Now! is pretty bearish. The basic gist is that while the ten-year represents fair value today, because inflation expectations have become unanchored, Morgan Stanley expects the yield to rise from 3.3% to 5.5%. That’s a disaster of 1994 proportions. Obviously, given some of my recent comments, this
Morgan Stanley: Bullish, but not revising estimates for Euroland
Elga Bartsch writes that Morgan Stanley looks at the recent data coming out of Eurloand as distinctly bullish. As a result, they are revising up their GDP estimates. A number of countries, notably the euro area’s two largest economies – Germany and France – posted a surprise rise in 2Q GDP. Others – like Italy,
Morgan Stanley’s V-shaped recovery is my W-shaped double dip
Dick Berner, Chief North American Economist at Morgan Stanley, thinks we are in for a sizable uptick in GDP for Q3. I must be honest; I am sceptical about this, but Berner is a well-regarded economist whose views can’t be dismissed out of hand. He says: Incoming data… confirm that the deepest and longest post-war
Large bank loses $7.9 billion: CDS involved
Back in April, I mentioned a story about BTA, a bank in Kazakhstan that had been nationalized by the state in February. The interesting bit about the story was that interested parties from abroad (including Morgan Stanley) had significant Credit Default Swap contracts (CDS) written against losses in the banks bonds. In essence, foreign investors
Financial Alchemy at Morgan Stanley: Greywolf A3 CDOs now Aaa bonds
The Online Merriam-Webster Dictionary describes alchemy as “a power or process of transforming something common into something special” or “aiming to achieve the transmutation of the base metals into gold.” Well, it seems Morgan Stanley is engaging in some financial alchemy because it is about to trade near-junk rated paper for Aaa gold-standard bonds (hat
Goldman and Morgan Stanley are now banks
The Federal Reserve is pulling out all the stops to stop the spread of the financial meltdown contagion that claimed Lehman Brothers, Merrill Lynch and AIG. The latest move is to allow both Goldman Sachs and Morgan Stanley to become bank holding companies. By allowing the securities firms to re-designate as banks, the Fed is
Morgan Stanley: rogue trader goes missing
You probably heard about Morgan Stanley’s financial results this past week — not stellar. What most people seem to be buzzing about is that a rogue trader cost the bank $120 million. The trader has been suspended pending further investigation.
It may seem a lot but the loss is not huge on the grand scale of rogue trader losses. See the articles below. Now, those are some major losses
Morgan Stanley warns of a new inflationary period
In an article entitled “Globalized Inflation,” Joachim Fels warned in today’s Wall Street Journal that inflation is not contained and that we are in a new inflationary period. The conventional theory is that surging food and energy costs explain virtually all of the inflation spike. Optimists claim that once energy and food prices settle down