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Michael Terry
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Michael Terry, CFA has nearly 20 years of experience in the investment management industry focused on the analysis, investment and management of fixed income and preferred stock portfolios. Over the years, Mr. Terry has analyzed and invested in both public and private companies around the world... More
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  • China And The Treasury Batphone

    Really?

    In an unprecedented move, in June 2011 the U.S. Treasury Department granted the Chinese government direct-bidder status to purchase U.S. Treasuries direct from the U.S. government,reports Reuters. All other central banks must purchase U.S. Treasuries through primary dealers on Wall Street, which then place bids on their behalf at Treasury auctions.

    The People's Bank of China holds roughly $1.2 trillion in U.S. debt, more than any other entity, and it is now the first foreign government with direct computer access to the U.S. government Treasury auction process. China, however, must sell U.S. Treasuries on the open market.

    Tim G: $3 billion, you're done. You want fries with that.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: china, treasuries
    May 23 11:58 AM | Link | Comment!
  • Greek Banks - ESFS Makes A Deposit

    I recently wrote an article on National Bank of Greece which stated that the game is, essentially, over as the bank is insolvent without the state aid received. Well, they are getting more. Doesn't make them better, just makes them live longer. They will still require more due to further asset write-downs and poorly performing loans. If Greece made their banks provision the way Spain is, the only thing that would be left standing in Athens would be the acropolis.

    ATHENS, Greece (AP) -- Greece's four biggest commercial banks will receive an €18 billion ($23 billion) cash infusion from the European bailout fund.

    The recapitalization comes amid political uncertainty in the debt-stricken country after inconclusive May 6 elections saw a rise in support for anti-bailout parties and cast doubt over whether Greece's future use of the euro currency.

    The uncertainty has impacted bank deposits as people have been withdrawing their money to hedge against the country's possible return to its old devalued currency, the drachma.

    The European Financial Stability Facility (EFSF) money will be disbursed on Wednesday to the National Bank of Greece, Eurobank, Alpha Bank and Bank of Piraeus.

    Article

    Disclosure: I am long NBG.

    Tags: NBG
    May 23 9:56 AM | Link | Comment!
  • The Blue Oval Returns - Ford Upgraded

    Moodys upgrades Ford and Ford Credit:

    New York, May 22, 2012 -- Moody's Investors Service raised the senior unsecured ratings of Ford Motor Company (Ford) to Baa3 from Ba2 and Ford Motor Credit Company LLC (Ford Credit) to Baa3 from Ba1. Ford's Corporate Family and Probability of Default Ratings, as well as its Speculative Grade Liquidity rating, are withdrawn.

    The rating of Ford's secured credit facility is lowered to Baa3 from Baa2 in anticipation of the imminent fall away of the bank agreement's security interest. This fall away, which would be consistent with the facility's terms, would result in any outstandings being pari passu with Ford's other senior unsecured debt.

    The upgrade of Ford recognizes the strength of the company's position in North America, its robust liquidity position, and our expectation that the company will continue to embrace sound operating and financial disciplines. We believe that these strengths will enable Ford to maintain an investment grade profile in the face of the sector's ongoing cyclicality and weakness in the European market.

    The upgrade of Ford Credit's ratings results from the upgrade of the Ford ratings. Ford Credit's strategic importance to Ford as a provider of critical dealer and consumer auto financing, as well as Ford's explicit and implicit support of Ford Credit tie Ford Credit's ratings to those of its parent. Based on the liquidity and capital positions of Ford and Ford Credit, Moody's estimates that Ford has the capacity to support Ford Credit to a level equivalent to the Baa3 rating. Ford Credit's stand-alone credit profile remains unchanged at a mid-Ba level.

    The rating outlook for both Ford and Ford Credit is stable.

    CDS 50 tighter. Way to go Ford and welcome back blue oval.

    Disclosure: I am long F.

    Tags: F
    May 23 9:38 AM | Link | Comment!
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