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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 2338
Forum Topic:

USD

Discuss USD
 
Stationdealer
London, UK
Posts: 715
14 years ago
Jun 18, 2010 15:46
91 Banks Miss May TARP Payment, 68 Banks Miss Multiple Payments; Top 10 Sovereign Debt Default Risks; New "Merle Hazard" Song - "Legal Tender"


Six hundred small banks still hold $130 billion in unpaid TARP payments with taxpayers on the hook. Records show Over 90 Banks Miss their May TARP Payment.

Statistics, compiled by SNL Financial from U.S. Treasury data, showed 91 banks and thrifts skipped the May dividend payment under the Troubled Asset Relief Program, or TARP. It was the first missed payment for 23 of the banks; for the others, it was at least their second miss.

The number of banks missing their TARP payments rose for the third straight quarter. In February, 74 banks deferred their payments; 55 deferred last November. SNL Financial's analysis found 20 banks have missed four or more payments since the program began in 2008, while eight banks have missed five payments.

While many of the largest U.S. banks easily repaid billions in TARP aid, more than 600 smaller banks still hold $130 billion from the program, created at the height of the financial crisis.
Most of the banks failing to make TARP payments are bankruptcy candidates.

Top 10 Sovereign Debt Default Risks

Inquiring minds might also be interested in a slideshow of Government Debt Issuers Most Likely to Default.

Minus the slide images here are the results.

1. Argentina - CPD: 50.14% - Mid Spread: 1081.14
2. Venezuela - CPD: 49.76% - Mid Spread: 1013.78
3. Ukraine - CPD: 44.12% - Mid Spread: 884.91
4. Pakistan - CPD: 42.17% - Mid Spread: 803.20
5. Dubai, UAE - CPD: 32.46% - Mid Spread: 572.92
6. Republic of Latvia - CPD: 29.13% - Mid Spread: 513.31
7. Iraq - CPD: 28.25% - Mid Spread: 475.97
8. Iceland - CPD: 27.03% - Mid Spread: 476.34
9. Greece - CPD: 24.92% - Mid Spread: 341.54
10. Dominican Republic - CPD: 23.37% - Mid Spread: 375.00

From the article: "The countries are ranked by their cumulative probability of default (CPD), which gives the market's assessment of an issuer's likelihood of default over the life of a CDS contract."

Those numbers are from March as ranked by CMA. Greece is certainly higher now.
Pipster
UK
Posted Anonymously
14 years ago
Jun 15, 2010 15:41
Mont

I will endeavour to get a copy - Should've had a copy by now. Its just I felt it may be above me, as i'm just grasping the basics. I'm always asking for advice/guidance from you guys and I feel a bit bad about it. Hopefully in time to come, I will be able to help someone else.

Thanks
montmorency
Abingdon, UK
Posts: 610
14 years ago
Jun 15, 2010 15:24
@Pipster: If you have not read Ashraf's book yet, you should do so.

Pipster
UK
Posted Anonymously
14 years ago
Jun 15, 2010 13:37
Dj

Some very very useful information. It will reallyl help me out.

I am short on Usd/Cad from 1.0288 - with a target of 1.0167

I will then hopefully look to buy around that level or lower.

With what you have mentioned it makes sense.......Oil prices are looking to break the 75.80 level and will move higher, thus putting the Usd/Cad which is looking slightly bearish

Thankyou soo much for that piece of knowledge. I am slighty assured that my short may work out.

djellal
LAUSANNE, Switzerland
Posts: 531
14 years ago
Jun 15, 2010 13:29
It's right generally

Decrease in risk appetite = increase in dollar strength

Increase in risk appetite = dollar weakness

Yes i'm bullish on usdcad but to trade this pair you should follow oil level (because oil and canadian dollar are often correlated and if oil is in upside it put pressure on usd)
Pipster
UK
Posted Anonymously
14 years ago
Jun 15, 2010 13:20
Hey Dj

i'm trying to get my head round some terms and I really need to remember terms like risk appetite.

Is this right

Decrease in risk appetite = increase in dollar strength

Increase in risk appetite = dollar weakness


Oh are you bullish or bearish on this pair
djellal
LAUSANNE, Switzerland
Posts: 531
14 years ago
Jun 15, 2010 12:55
RISK APPETIT SHOULD DECREASE THESE NEXT DAYS... wait for usd bounce
Pipster
UK
Posted Anonymously
14 years ago
Jun 15, 2010 12:41
Guys,

Any thoughts on how Usd/Cad is playing out today and in the next few days. Many Thanks
Stationdealer
London, UK
Posts: 715
14 years ago
Jun 14, 2010 15:12
Fannie/Freddie In Focus http://www.bloomberg.com/apps/news?pid=20601109&sid=an_hcY9YaJas&pos=10
The market has long known that the unholy duo of Fannie Mae and Freddie Mac will cost the US taxpayer an arm and a leg before all is said and done. Just how much is beginning to be estimated. Its not pretty.
In debt-laden world, a potential further $1 trln added to Uncle Sams tab is not helpful
Stationdealer
London, UK
Posts: 715
14 years ago
Jun 14, 2010 9:06
Dollar Dives on Short-Covering and BIS Report

The US dollar appears to have lost modest ground against its primary currency rivals during short-covering at the end of last weeks trading. The Bank for International Settlements (BIS) released a statement on Sunday declaring that while European banks have lowered their reliance on dollar-based assets, there is still a strong need to diversify portfolios even further. The call for diversification is not new, but this study may add pressure on the USD which has seemingly been absent during this period of risk aversion.