GLG News by Investment Banking Experts (US)

"Morgan Stanley expects several more quarters before credit markets return to more normal activity, and structured credit markets could be challenged for an extended period, the company's chief financial officer said."  Challenged.  The FBI is investigating, lawsuits are brewing (such as the...

First, ratings downgrades are just a matter of time.  Secondly, we face a long period of uncertainty (that is, no one is really sure who owes what and to whom, et cetera) and pain -- a mess that institutions are going to have to unwind in order to evaluate and properly...

Bond insurers will be hard pressed to survive mounting losses on CDOs and other securities that they guarante.  Egan-Jones estimates that Ambac losses may reach $4.3 billion.

If this had been a mere subprime crisis, it would now be over. But it is not, and nor will it be over soon.  Any near-term rally in the bear market is likely to be led by U.S. companies that will get the biggest bang from the Federal Reserve's latest interest-rate cut. But this is exactly the part...

Any near-term rally in the bear market is likely to be led by U.S. companies that will get the biggest bang from the Federal Reserve's latest interest-rate cut. But this is exactly the part of the economy where the reality of a slow recovery has the power to repeatedly dash premature optimism. Take...

This is not merely a subprime crisis.  Several other (and larger) pockets of the credit market are also vulnerable, (such as) credit default swaps, relatively modern financial instruments that allow bondholders to insure against default.

Citigroup's eroded capital ratio will put added pressure on the company to reduce its dividend payment or take other steps to protect its capital position.

Structured finance allows more efficient capital use and will persist.  The market will revert to more conservative and consistent constructs in the face of elevated risk realization. Investors will demand secondary market liquidity rather than estimates provided by intermediaries who also...

Financial Mismatching - Without understanding the funding connections among an individual sub-prime mortgage, the securitized bond issued with the mortgage as collateral, the hedge fund or managed money sourced to purchase the bond and the commercial paper issued to on-lend into the managed money fund,...

The stock market pricing trends have absorbed, already in their respective values, inflationary price trends in most commodity sectors.  These same general stock pricing trends have continued its bullish way despite crushing blows in terrorist attacks worldwide.  The onslaught of exuberant...