May 20, 2008
Germanic Airline for German Speaking Europe (Germany, Austria, Switzerland and Luxemburg)
Analysis of:
Austrian Airlines CEO open to majority takeover | www.reuters.comAuthor: GLG Expert ContributorSwiss Air, Austrian Air and Luxemburg Air are too small to operate economically in the medium and longer-term. A merger with Lufthansa is clearly the correct solution. The frequent flyer program of both Swiss Air and Austrian Air are already captive Lufthansa client reward systems. Why not...
May 20, 2008
The Mortgage and Housing Industry/Das Boot may not always surface in the end
Analysis of:
Fannie Is Poised to Scrap Policy Over Down Payments | online.wsj.comAuthor: GLG Expert ContributorIncreasing leverage got us into the credit crisis. With an upturn in housing prices perhaps 10 years away, how can this simple solution serve the new housing buyers or the broader economy?. We are basically transferring risk from banks and new housing buyers to the federal government. Sounds like...
May 19, 2008
Fair Value Accounting/Mark-to-Market Strengthen the System
Analysis of:
Some facts about fair value | www.fasb.orgAuthor: GLG Expert ContributorWithout the fair value accounting and mark-to-market concepts, the modern investment banking and asset management industry could not function. We live in a real time world and the above concepts reflect this fact. The real danger to the system is too much leverage, lax risk management and a missing,...
May 19, 2008
Money Market Securities and Bonds are not a girl's best friend
Analysis of:
Thin Yields Weigh on Investors | online.wsj.comAuthor: GLG Expert ContributorThe key to investment success is understanding: investment horizon, price, liquidity and inflation risk. The absolute level of return is not as important as the inflation and risk-adjusted return. If you invest in money market and short term bonds, you will never be a girl's best friend. Razor...
May 19, 2008
Kill Two Birds with One Stone - Outsource IT, Marketing Materials and Reporting
Analysis of:
Brokers to cut technology spending by 7% | www.financialnews-us.comAuthor: GLG Expert ContributorModern investment banking, brokerage and asset management live and die with top flight IT systems. Risk and Information Management are at the core of the securities business. Reducing costs in the downturn is important, but maintaining operating efficiency and risk controls is a regulatory necessit...
May 19, 2008
Interest Rate Yields: Balance Return On Investment,Safety and Liquidity.
Analysis of:
Thin Yields Weigh on Investors | online.wsj.comAuthor: GLG Expert ContributorImplications: 1.Safe Investments will provide Preservation of Capital but, provide a Low Rate of Return - Trade Off as it relates to Risk. 2.Recessionary pressures are , likely, to remain unstable. It is a question of Risk vs Reward. Safety is an option for the Investor. 3.Causation - the Federal Government...
May 19, 2008First Boom, Now Bust Burns An Aggressive Banker
Analysis of:
A Gamble That Went Bust | online.wsj.com
Author: Bill Bradway,
Founder & Managing Director, Bradway Research, LLC The housing bust has already made headlines from the subprime fallout, claiming dozens of mortgage banks, producing asset write offs approaching $300 billion on a global basis, and forcing many of the largest financial institutions to raise billions in new capital. Now smaller banks are going over the...
May 15, 2008
And the Pendulum Swings the Other Way
Analysis of:
Say Goodbye to the Specialized Mortgage Options | www.latimes.comAuthor: GLG Expert ContributorThe current market turmoil was created by good old fashion greed. However, it can not be fixed with over regulation, it can be fixed with common sense and a true willingness of both parties, the consumer and the lender to participate in the increased risk of lending that is now prevalant...
May 13, 2008
Munich Re - Re-insurance with built in stablizers
Analysis of:
Munich Re Net Income Drops 20% | www.propertyandcasualtyinsurancenews.comAuthor: GLG Expert ContributorMost of Munich Re's securities investments are in European investment grade and government bonds. As inflation increases, re-invested funds will earn a higher rate of return. Their investments in equities, private equity and more complex fixed income securities are managed by a professional captive...
May 12, 2008
Why the German prpoerty market differs from US and UK counterparts
Analysis of:
Dollar fall may trigger German property sell-off | www.reuters.comAuthor: GLG Expert ContributorThe German property market has built in stablizers: lower leverage, more moderate price increases over a longer period, lower volatility and underbuilding in many cities. The willingness of German investors, both retail and institutional, to invest directly and indirectly in residential and...
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