Read these two synopsis of articles coming out today; the first is news to me, the second is not really as it has been the trend the past couple of weeks as rationalization comes back when pricing "money-good" cashlows:
May 1 (Bloomberg) -- Overdue debts at the six largest U.S.
credit-card lenders held steady in March, remaining at the
highest level since November 2004, data compiled by Bloomberg
Payments late by at least 30 days averaged 4.11 percent of
loans in March, the same as in February, according to reports
filed by American Express Co., Bank of America Corp., Capital
One Financial Corp., JPMorgan Chase & Co., Citigroup Inc. and
Discover Financial Services.
``I'd be surprised if we're at the peak for late
payments,'' Nigel Gault, research director at Lexington,
Massachusetts-based Global Insight Inc., said in an interview.
``Pressures on the consumer are increasing, with employment
declining, home prices continuing to fall, and prices outpacing
By Sarah Mulholland
May 1 (Bloomberg) -- U.S. securities backed by credit card
and auto loans are lagging behind other debt, a sign the Federal
Reserve hasn't done enough to quell concern that consumers may
fail to make monthly payments on time.
Credit-card bonds lost 0.14 percent in April and auto-loan
debt fell 0.4 percent, Merrill Lynch & Co. indexes show. By
contrast, high-yield, high-risk corporate bonds returned 4.2
percent, the best month in five years, and top-rated securities
backed by subprime or home-equity loans rose 0.77 percent.
Do you think what I am thinking or shall I say in Spanish? [evilgrin]
Spanish? Okay, "Principal Unos". There YOU have the secret now. Calculating put options and looking for risk-reward metrics now and I may take a decent sized position.
The right enemy
5 years ago