Archivo de diciembre/2007

Coincidiendo con el final de a

Last week Central Banks were pretty active on providing the
needed liquidity to avoid any cash stress as we got into the New Year. Initially everything seemed as the implementation of the agreements on liquidity provision reached by the main Central Banks on the 12th of December. However things have evolved differently. The size of the auction in Europe was much higher than expected. Probably many US/UK banks were among the main bidders for this funding, even if there were special dollar funding auctions programmed by the ECB. Not withstanding, the end result has been achieved: to soften tension in the money markets as we got into the New Year. Looking at the auctions delivered by the three main Central banks (European Central Bank-ECB-, Bank of England

Para aquellos que est

Aunque es un hecho que el número de operaciones de M&A han disminuido de forma ostensible en los últimos meses, no es menos cierto que aún se siguen produciendo acuerdos de compra/venta de empresas que resultan muy interesantes. Tomemos, por ejemplo, el caso de la <a href=»http://http://www.thedeal.com/servlet/Satellite?pagename=NYT&c=TDDArticle&cid=1197811535500″>compra del 79% de Arsys</a>, empresa líder en el mercado de alojamiento y registro de dominios en Internet, por Mercacapital y el grupo Carlyle.

This is the question Central Banks ask themselves. They first asked themselves individually and later on (last Wednesday) they though they might get together to make this reflection together. We might be able to get some conclusions on this question if we follow the most recent events and market data.

We have received little news from the most innovative tool that has recently been released y the Fed to provide liquidity, the TAF (Term Auction Facility). This latter tool is a hybrid between traditional open market operations (limited to a small club, main dealers) and the discount window (open to any depositary institution but at a penalty rate). The first TAF was implemented yesterday but we know little about the results. I searched in the NY Fed webpage and found no information. However, we might get some indirect information from today

Nos encontramos en pleno tiempo de preparaci

Hace poco un buen amigo me señalaba algunas de las trampas en las que todos podemos caer cuando hay que juzgar actuaciones y tomar decisiones. Quizás la más frecuente, decía, es plantearse incompatibilidades que no son reales. Y, para resolver estas aparentes incompatibilidades, buscar soluciones que también son aparentes y, por tanto, falsas.

La crisis financiera destapada en el pasado verano fue anunciada y resumida con anterioridad por informes de organismos internacionales, como el FMI o el BIS. En esencia, y como se se

I got an email after the FOMC meeting decision with phrases expressing the reaction after todays decision of the Fed. People wanted a much more decisive move in the discount window. They did not get it. Here they go.

1) I will now get the 2007 Carlos Rossi instead of Petrus for the holidays.
2)He will go down as the worse Fed governor ever
3) Beyond me
4)The mkt wanted heroin and got methadone
5)this is really a dream right? did I sell a point ago?
6)Cancel your yr end vacation..Everyone will need treauries into the turn
7)Stocks! make them pay!
8) Ben Bernanke is the Eli Manning of Fed chairmen

RBS recently released an interesting plot that shows the percentage of delinquencies in the prime and sub prime market in the US (see attached picture). This is the origin of the current fears. Those mortgages that already have the status of delinquency will not be under the umbrella of the plan pushed by the secretary of the Treasury and released by Bush yesterday. Hence the plan will not alter the current trend. It might curb it if the plan is successful and future delinquencies are stopped. But a new trend is appearing in prime loans and for this one there is no freeze of rates.

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