Comments on: Failed German Bond Auction – not what it seems EXPANDED

By: Golem XIV - Thoughts

Golem XIV - Thoughts — Fri, 23 Jul 2010 08:57:51 +0000

I never met James. But I did meet and interview Teddy. He was GREAT.

By: frog2

frog2 — Fri, 23 Jul 2010 05:55:53 +0000

By: Tam

Tam — Thu, 22 Jul 2010 17:07:16 +0000

Check this out. It isn't remotely related to this post but it will be well worth a look for most of your readers, if only to see how financial news was reported on the telly during the 70s…

http://www.bbc.co.uk/blogs/adamcurtis/2010/07/predator_vs_aliens_ii.html

By: frog2

frog2 — Thu, 22 Jul 2010 10:42:51 +0000

The Master CDS against all other CDS writers going bust , how many angels could dance on the head of that pin !

This whole process is all about the suspension of disbelief. So long as the music plays the players continue just as before. If the system crashes some time, nobody is to be blamed, because (nearly) every one of the players is in it together.

By: Golem XIV - Thoughts

Golem XIV - Thoughts — Thu, 22 Jul 2010 09:37:22 +0000

Talking of insurers did you see that Pimco is now offering what is being refered to as 'Black swan' insurance. Selling CDS to cover in the event of another BIG dislocation?! I think Citi was the first to start this idiocy. I mean irony doesn't being to to cover it, does it!

By: frog2

frog2 — Thu, 22 Jul 2010 09:32:56 +0000

On Rating Agencies' liability.

In the event of a Big One, their capital and reserves would be nowhere near big enough to meet claims, and if they had insured -- the insurer would be in the same situation.

By: john

john — Thu, 22 Jul 2010 08:38:58 +0000

Hi Golem,

Glad to see that the blog is continuing!

Now 13 week Debt, that is scary!

I've often heard that the UK has the benefit of most of its debt being relatively long term 10, 25 years etc. Is this gradually being eroded by the trend of the markets to buy shorter term debt? Do you have an idea of the fraction of UK debt in different length bonds and how this has changed over the past year?

jms452

By: Golem XIV - Thoughts

Golem XIV - Thoughts — Thu, 22 Jul 2010 08:35:40 +0000

Frog2,

Yes, the liability thing is quite interesting. It would force the agencies to do some real due diligence.

By: Golem XIV - Thoughts

Golem XIV - Thoughts — Thu, 22 Jul 2010 08:33:19 +0000

RichGB

I am the reason you can't find it. I mis-spelt it in the blog (now fixed) It is Dagong NOT Dagone. Sorry. Not sure if it was finger or brain trouble.

Here's the link to the agency web site.
http://www.dagongcredit.com/dagongweb/english/index.php

By: RichGB

RichGB — Thu, 22 Jul 2010 08:27:20 +0000

Thanks frog2.