Hi AJ... and then we can proceed up to 4% by the end of the year...... things are great are they not....!!!!
we close the gap and then move higher in the TNX yippee we can go all the way to 4% by the end of Q3 orr Q4 and US bulge bracket banks have exceptional profits to be made in their treasury operations as the funding costs as are 20 basis points on the 90 day tbill and the 30 year bond yields 3.66%, for a profit of 3.42% by borrowing short and putting it in 30 year bonds at 3.66.
Lets do that will 100 Billion dollars. so over the coming 12 months we (we meaning ) UBS or Citi or JPM or NY Life , ACE LTD or AON...of Wells Fargo... W FC, PNC (WFC and PNC are both at new all time highs as is ACE)... or BAC Bank of America.....Goldman, John Paulson, Bruce Kovner, John Taylor over at FX Concepts.....George Soros, Warren Buffet and Charles Munger.... Jeff Kirby over at Alleghany (Y) oh and Deutsche bank, Barclays, soc gen Allianz of Germany...they own PIMCO..
will make 3.42 billion dollars...... that sounds pretty good...... bank earnings should be great ....yippeee financials are going to clean up...
well lets just check our risk exposure particularly the duration of our bond portfolio and how the convexity curve will move depending on the coupon yield of the our bonds and the time to maturity of our bond portfolio...so I will bring in my risk management team and we will go over every single bond and risk asset and calculate it's market to market price and it's net present value and we will also define our worst case scenerio risk on every single piece of our portfolio..... and we do this every day... because we are professional bankers.... Jaime Diamond is the Gold starndard...actually he is in the Diamond club.... hence his name.....
and he the CEO of Morgan stanley that just reorganized are both best of breed executives.... I guarantee it....
so we had better hedge our risk exposure... in other worse offset it or lay it off by using credit swaps... and or securitizing it up in packages making a fee and not holding the assets that expose us to risk...No Problem... we know exactly how to do this at Goldman, and John Paulson knows how to do it so does Peter Nielson at BAC who I personally met with several times in Sydney in 1987 when he was running FX at Bank of America... my brother in law mark mcCabe was an FX dealer there and my younger brother...Peter J Pitera also started his professional banking career at the age of 19 working under Peter Nielson at BAC in Sydney.....
so I am not going to get every thing in this post but I have started the weekends analysis
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ex: storm clouds gathering........?
Detroit Case Scrutinized by $900 Billion G.O. Market
By Darrell Preston, Michelle Kaske & Martin Z. Braun - Jul 19, 2013 10:45 AM CT
The fate of a 2 percent sliver of Detroit’s obligations is drawing scrutiny from investors holding a $900 billion chunk of the U.S. municipal-debt market.
Before filing the largest U.S. municipal bankruptcy yesterday, Detroit Emergency Financial Manager Kevyn Orr tried to persuade holders of $369 million of unlimited general obligations, which are supposed to have the full backing of taxpayers, to accept less than 20 cents on the dollar. The borrowings are part of $17 billion in debt and long-term liabilities Orr sought to restructure.
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your humble scribe
JJP
John Jacob Pitera at Silicon Investor..GFA and Linked In.........and cc to ACE Ltd |
