Phorgy Phynance

Bear Stearns doom and gloom

with one comment

Over on Nuclear Phynance I predicted that today would be an “interesting day”

Posted July 8, 2007:
All I can add is that I think July 16 will be an interesting day

The reason being that Bear Stearns was suppose to report their losses today and I thought they would be a lot worse than people expected. From Reuters:

Bear Stearns to add up fund losses by July 16: report

I was out running errands this afternoon so didn’t have the pleasure of staring at my computer screen all day. In fact, I even went for a jog while waiting for some car work to be done and nearly gave myself heat stroke. As far as I can tell, Bear Stearns has not reported yet, but it seems some people are expecting bad news.

Benchmark ABX subprime indexes trade at record lows

That itself may not be too newsworthy, but you must check out the charts summarized neatly on The Big Picture (Did I say I love that guy?)

WTF is going on in the ABX Markets?

Here an excerpt:

Very ominous charts (all via Markit):

Triple A (AAA)
2007
Aaa_072006
Aaa_06

Double A (AA)
2007
Double_aa_07

2006

Double_aa_06

I particularly like his comment right after pasting these charts:

Maybe there is a problem at Bear Stearns.

You think so? :)

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Written by Eric

July 16, 2007 at 3:58 pm

Posted in ABX, Bear Stearns, CDO

One Response

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  1. [...] my models were unfortunately only completed in March-April). That is why I was so certain that July 16 would be a big day. That was the day Bear Stearns was to report their hedge fund [...]


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