WSJ: High Oil Prices Rattle Asian Markets

ASIA MARKETS|FEBRUARY 28, 2011, 1:54 A.M. ET
High Oil Prices Rattle Asian Markets

By SHRI NAVARATNAM And GA-WOON PHILIP VAHN

SINGAPORE—Asian stock markets were mixed Monday as a surge in oil prices amid continued worries over the turmoil in the Middle East hit airline stocks and dampened sentiment.

The Seoul market lost ground on fears that an ongoing military drill could provoke fresh aggression from North Korea.

Risk of Widespread Municipal Bond Defaults Near `Zero,' Moody's Zandi Says

Related News: U.S.·Bonds·Municipal Bonds

Risk of Widespread Municipal Bond Defaults Near `Zero,' Moody's Zandi Says

By Mark Niquette and William Selway - Feb 28, 2011 6:22 AM GMT+0900

Mark Zandi, chief economist
for Moody's Analytics.
Photographer:
Andrew Harrer/Bloomberg

Dire warnings about impending defaults in the municipal-bond market are overblown, an economist and analyst told a group of the nation’s governors.

The risk of a major default or round of defaults is “close to zero,” Mark Zandi, chief economist for Moody’s Analytics Inc. in West Chester, Pennsylvania, said during a panel session at the National Governors Association’s winter meeting in Washington.

“I think that the very loud hand-wringing over the prospects for major municipal-bond defaults is entirely misplaced,” Zandi said.

Why 2011 May Be the End of the Housing Crash (WSJ)

Insight: Is the Housing Crash Finally Over?

Hello. Today, we are exploring the key takeaways from the Wall Street Journal's 2011 article, "Why 2011 May Be the End of the Housing Crash." This insightful piece explains why the long and painful real estate slump might finally be coming to a close.

The biggest reason for optimism is that homes are incredibly affordable right now. In fact, compared to how much people earn, houses are the cheapest they have been in 35 years. In cities like Los Angeles, the cost of a home has dropped so much that buying makes a lot more financial sense than renting.

Another very positive sign is that smart investors are quietly returning to the market. But they aren't borrowing heavily like people did during the bubble. Instead, they are buying up properties with cold, hard cash. In cities like Miami, over half of all home sales were cash deals. This shows that savvy buyers believe prices have finally hit rock bottom and are seizing the opportunity.

If you are thinking of jumping in, the experts have some sound advice. Don't expect to get rich quick like in the mid-2000s. You should plan to hold onto your property for at least 10 years and avoid taking on too much debt. If you want to profit from the housing recovery without actually buying a house, you can easily invest in exchange-traded funds or mutual funds that focus on home construction and home improvement companies.

Sourced from The Wall Street Journal: "Why 2011 May Be the End of the Housing Crash"
Read the original article

안녕하세요. 오늘은 월스트리트저널에서 발표한 "2011년이 주택 시장 폭락의 끝이 될 수 있는 이유" 기사의 핵심 내용을 알기 쉽게 정리해 드립니다. 2006년부터 이어진 부동산 침체기가 드디어 끝날 조짐을 보인다는 긍정적인 전망을 담고 있습니다.

가장 큰 이유는 집값이 정말 저렴해졌기 때문입니다. 사람들의 소득에 비해 집값이 35년 만에 가장 낮은 수준으로 내려왔습니다. 예전에는 집을 사려면 몇 년 치 월급을 꼬박 모아야 했지만, 이제는 그 기간이 절반 가까이 줄어든 지역이 많습니다. 월세를 내는 것보다 차라리 집을 사는 것이 더 합리적인 상황이 된 것입니다.

또한 현금 부자들의 발 빠른 움직임도 주목할 만합니다. 빚을 내서 무리하게 집을 사던 과거와 달리, 요즘은 집값을 전액 현금으로 지불하며 부동산을 사들이는 투자자들이 눈에 띄게 늘었습니다. 마이애미 같은 곳에서는 절반 이상의 거래가 현금으로 이루어졌을 정도입니다. 이는 영리한 투자자들이 지금이 집을 사기 가장 좋은 타이밍이라고 판단했음을 보여줍니다.

다만, 전문가들은 당장 집값이 예전처럼 껑충 뛸 것이라는 헛된 기대는 버려야 한다고 조언합니다. 최소 10년 이상 길게 보고 집을 사야 하며, 빚을 너무 많이 지는 것은 피해야 합니다. 만약 직접 집을 사고 관리하는 것이 부담스럽다면, 집을 짓거나 집수리 용품을 파는 회사들에 투자하는 상장지수펀드(ETF)나 펀드를 활용하는 것도 아주 좋은 방법입니다.

위 내용은 월스트리트저널의 "Why 2011 May Be the End of the Housing Crash"를 읽기 쉽게 요약한 자료입니다.
오리지널 기사 링크

The Caution Flag Is Out For The Revitalized U.S. CMBS Market (S&P)

The Caution Flag Is Out For The Revitalized U.S. CMBS Market (00:05:57 min)

The revitalized U.S. CMBS market is dealing with larger and more complex transactions. CMBS 2.0, after a very conservative start, has quickly moved toward higher leverage, lower debt service coverage ratios, and somewhat looser underwriting. In this podcast, Standard & Poor's Managing Director Howard Esaki and Senior Director James Manzi discuss overall market trends with an eye on these recent transactions.

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Tesco reviews property strategy

http://www.ft.com/cms/s/0/d2828764-4105-11e0-bf62-00144feabdc0.html

February 25, 2011 11:06 pm
Tesco reviews property strategy
By Andrea Felsted, Senior Retail Correspondent

Philip Clarke, the incoming chief executive of Tesco, is examining the group’s property strategy in a move that some analysts believe could herald a further multibillion-pound disposal programme.

AB: Ratings Agencies Criticized for Going Easy on Mortgage Servicers

Ratings Agencies Criticized for Going Easy on Mortgage Servicers
By Jeff Horwitz
FEB 25, 2011 5:23pm EDT

Investors and analysts have howled over specific mortgage servicers' handling of delinquent loans for years. The ratings industry generally has not.

Frankfurt’s ‘Mainhattan’ Reaches for the Skies

February 25, 2011, 10:59 AM
Frankfurt’s ‘Mainhattan’ Reaches for the Skies

By Tom Fairless

Frankfurt’s landmark towers are gleaming anew. This week, the last of 2,800 staff moved back into Deutsche Bank’s 155-meter towers, nicknamed “debit” and “credit,” after a three-year refurbishment. Everything bar the concrete skeleton is new. The pair will be formally launched at a party on Thursday.

http://blogs.wsj.com/source/2011/02/25/frankfurts-mainhattan-reaches-for-the-skies/

AB: A Servicer's Alleged Conflict Raises Doubts About 'Skin in the Game' Reforms

A Servicer's Alleged Conflict Raises Doubts About 'Skin in the Game' Reforms
By Jeff Horwitz
FEB 24, 2011 3:12pm EDT

Carrington Capital Management, a former subprime securitization specialist, salvaged an impressive amount of money from its low-ranked residential mortgage-backed securities, thanks to the unusual strategies of its servicing affiliate.

2011 Outlook For The U.S. Trucking Sector (S&P)

The Road Ahead: Standard & Poor's 2011 Outlook For The U.S. Trucking Sector (00:04:14 min)

Despite volatile fuel prices due to Middle East instability and increased costs from rising wages and recruitment, the U.S. trucking sector's outlook for 2011 should continue to improve. As industry demand correlates well with overall GDP -- which should rise this year -- we expect overall industry tonnage to increase. In this CreditMatters TV segment, Standard & Poor's Director Anita Ogbara discusses our expectations for the sector in 2011.

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Winters, Lord Rothschild to launch Renshaw Bay

http://www.ftadviser.com/2011/10/25/investments/winters-lord-rothschild-to-launch-renshaw-bay-uRZXrGyFDRZVIg6LbxBiPO/article.html

Winters, Lord Rothschild to launch Renshaw Bay

Former JP Morgan co-chief executive Bill Winters has unveiled an alternative asset management and advice venture with Lord Rothschild, targeting the UK's wealthy investors.

By Marc Shoffman | Published Feb 24, 2011

Rising Oil Prices Raise the Specter of a Double Dip

ECONOMY|FEBRUARY 24, 2011
Rising Oil Prices Raise the Specter of a Double Dip

By JUSTIN LAHART

A sustained and significant rise in oil prices could derail the U.S. economic recovery by stirring inflation and putting the brakes on spending.

Oil futures touched $100 a barrel at the New York Mercantile Exchange Wednesday—the highest since before the financial crisis hit in late 2008—before pulling back. Pricier oil drives up the costs of everything from gas at the pump to the raw materials used to make nylon and food packaging. That could mean higher inflation and prompt consumers, who lately have shown more willingness to spend, to cut back their purchases.

Home Sales Rise as Prices Fall (WSJ)

HOMES|FEBRUARY 23, 2011, 11:12 A.M. ET
Home Sales Rise as Prices Fall

By TOM BARKLEY And JEFF BATER

WASHINGTON—Existing-home sales unexpectedly rose last month, though a drop in prices to their lowest level in nearly nine years suggests the housing market continues to search for a bottom.

Demand for used homes increased by 2.7% to a seasonally adjusted annual rate of 5.36 million in January, the National Association of Realtors said Wednesday.

WJS: German Consumer Confidence Climbs

ECONOMY|FEBRUARY 22, 2011, 2:35 A.M. ET
German Consumer Confidence Climbs

By TOM FAIRLESS

FRANKFURT—German consumer confidence is set to rise further in March following a jump in income expectations, signaling that domestic demand will help underpin the country's brisk rebound from the financial crisis, German market research group GfK said Tuesday.

U.S. Economic Outlook And The Implications For Structured Finance (S&P)

Standard & Poor's U.S. Economic Outlook And The Implications For Structured Finance (00:06:18 min)

Over the winter, the U.S. economy picked up the pace, although we expect it to drag a bit during the second quarter. In this CreditMatters TV segment, Standard & Poor’s Chief Economist David Wyss provides our economic forecast for rest of 2011. Topics include GDP, unemployment, interest rates, inflation, home prices, consumer performance, and commercial real estate.

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Former JPMorgan Executive Starts Advisory Firm

http://dealbook.nytimes.com/2011/02/17/former-jpmorgan-executive-winters-starts-advisory-firm/

FEBRUARY 17, 2011, 6:49 AM

Former JPMorgan Executive Starts Advisory Firm
BY JULIA WERDIGIER

William T. Winters, a former senior executive at JPMorgan Chase, has teamed up with the investment firms of Jacob Rothschild and the South African billionaire Johann P. Rupert to set up an asset management and advisory firm in London.

Bill Winters to Establish Renshaw Bay, a Global Alternative Asset Management and Advisory firm, in Partnership with Lord Rothschild's RIT and Mr Johann Rupert's Reinet

http://www.ritcap.com/news-item?item=583915836327601

RNS Number : 3765B
RIT Capital Partners PLC
17 February 2011

17 February 2011

RIT Capital Partners is pleased to announce its participation in the launch of a new global alternative asset management and advisory company and the intention to appoint Bill Winters, formerly Co-Chief Executive Officer of J P Morgan Investment Bank, as a non-executive director of RIT. The announcement released today by the new venture is reproduced in full below:

Bill Winters to Establish Renshaw Bay, a Global Alternative Asset Management and Advisory firm, in Partnership with Lord Rothschild's RIT and Mr Johann Rupert's Reinet

Bill Winters, formerly the Co-Chief Executive of JP Morgan Investment Bank, has teamed up with RIT Capital Partners plc, chaired by Lord (Jacob) Rothschild and Reinet Investments SCA, chaired by Mr Johann Rupert, to set up a new global alternative asset management and advisory company, Renshaw Bay. Mr Winters will become Chairman and Chief Executive, with Lord Rothschild and Mr Rupert joining as Directors.

Bill Winters Gets Rothschild Funding for Renshaw Bay

Bill Winters Gets Rothschild Funding for Renshaw Bay
By Simon Clark - Feb 17, 2011

Bill Winters, the former co-chief executive officer of JPMorgan Chase & Co.’s investment bank, started an asset management and advisory firm with funding from Jacob Rothschild’s RIT Capital Partners Plc.

http://www.bloomberg.com/news/2011-02-17/bill-winters-gets-rothschild-funding-for-renshaw-bay-update2-.html

How Shifting Trends In Cable And Wireless Markets Are Shaping The U.S Telecom Industry

How Shifting Trends In Cable And Wireless Markets Are Shaping The U.S Telecom Industry (00:08:35 min)

Although Standard & Poor’s outlook on U.S. telecom and cable companies is stable for 2011, major industry shifts could affect credit quality. In this podcast, credit analysts Naveen Sarma and Michael Senno discuss some of the key issues confronting these issuers. Topics include Internet-based alternatives to cable, the possible effects of 4G networks and the impact of Verizon’s iPhone on the wireless market, and the potential credit implications for companies this year.

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SocGen's Greek unit Geniki says 2010 loss widens

ATHENS | Tue Feb 15, 2011 10:58am EST

Feb 15 (Reuters) - Geniki Bank (GHBr.AT), majority-owned by France's Societe Generale (SOGN.PA), said on Tuesday its losses more than tripled last year as Greece's economic woes caused a jump in bad debts.

Key Takeaways From The American Securitization Conference 2011

Structured Finance Research Week: Key Takeaways From The American Securitization Conference 2011 (00:05:38 min)

In this CreditMatters TV segment, Standard & Poor's Howard Esaki, head of Global Structured Finance Research, reviews the major issues discussed at the recent American Securitization conference in Orlando, Fla. Topics include the outlook for ABS and RMBS issuance in 2011, prospects for the U.S. economy, the residential real estate market, and banking.

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North American Engineering And Construction Companies Should Hold Up Well In 2011

North American Engineering And Construction Companies Should Hold Up Well In 2011 (00:08:13 min)

After a taking a number of positive rating actions on many North American engineering and construction companies in 2010, Standard & Poor’s expects the sector’s credit quality to remain stable this year. In this CreditMatters TV segment, Standard & Poor’s Associate Director Robyn Shapiro and Director Dan Picciotto discuss the sector’s resilient performance throughout the recession and why it should perform well in 2011. Other topics include some of the major players and the risks facing the sector.

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Hedge fund Level Global to liquidate funds

FEBRUARY 11, 2011, 12:38 P.M. ET
Hedge fund Level Global to liquidate funds

Associated Press

NEW YORK — One of several hedge funds that is under scrutiny in an insider trading probe is liquidating its funds and returning cash to investors.

Level Global Investors LP expects to fully liquidate by the end of March, according to a letter to investors obtained by The Associated Press on Friday.

Greek bank Emporiki's losses up, provisions jump

Greek bank Emporiki's losses up, provisions jump

Fri Feb 11, 2011 11:27am EST

Emporiki full-year 2010 loss at 874 mln euros

*Loan-loss provisions up 55 pct, reach 1 bln euros

ATHENS, Feb 11 (Reuters) - Greek bank Emporiki (CBGr.AT), majority-owned by France's Credit Agricole (CAGR.PA), said on Friday full-year 2010 losses widened 50 percent to 874 million euros ($1.18 billion) on higher provisions.

What’s Behind S&P’s Stable Outlook For U.S. Municipal Water And Sewer Utilities

What’s Behind Standard & Poor’s Stable Outlook For U.S. Municipal Water And Sewer Utilities (00:09:17 min)

Standard & Poor’s believes that the U.S. municipal water, sewer, and drainage utility sector is likely to enjoy continued rating stability this year, despite regulatory and financing concerns. In this podcast, credit analyst Ted Chapman discusses the rationale behind our thinking, the sector’s ratings universe, how climate, hydrology, and water supplies can affect credit quality, and more.

(more)

U.S. Leveraged Finance

For U.S. Leveraged Finance, How Much Credit Risk Remains?

While prices on speculative-grade bonds and leveraged loans suggest that the U.S. leveraged finance market has stabilized since the severe disruption of 2008-2009, Standard & Poor's Ratings Services believes risks remain, especially for borrowers at the lower end of the credit spectrum.

(more)

U.S. Corporate Defaults Set To Remain Low (S&P)

U.S. Corporate Defaults Set To Remain Low, With Solid Recoveries, Say Investor Panelists

Defaults among U.S. nonfinancial corporate borrowers will probably remain low as the economic recovery strengthens, though risks to the stabilization of credit quality remain, said panelists at Standard & Poor's Ratings Services' Leveraged Credit & Recovery Conference in New York.

(more)

European Leveraged Loan Study 2009 (S&P)

European Leveraged Loan Study 2009: Global Economic Crisis Results In A Dramatic Shift In Default And Recovery Rates

Standard & Poor's has completed its annual "European Leveraged Loan Default And Recovery Study," bringing the data and analysis up to date through 2009. The portfolio of transactions now includes data reflecting a full down cycle (2008-2009). Compared to the previous report, which covered only the beginning of the downturn, the most recent results show a much steeper increase in European leveraged loan default rates and a continued decline in recoveries.

(more)

For U.S. And Canadian Forest Products Companies, A Stable Outlook In 2011 Takes Root (S&P)

For U.S. And Canadian Forest Products Companies, A Stable Outlook In 2011 Takes Root (00:06:25 min)

As companies in the U.S. and Canadian forest products sector shift cash from operations from debt reduction to capital investment, acquisitions, or shareholder payments, we expect positive credit actions to slow. Nevertheless, we believe most of the forest products companies that we rate will improve operating performance in the first half of 2011, reflecting an almost universal rise in average paper prices. In this podcast, Standard & Poor's Associate Director Tobias Crabtree discusses the sector outlook for the coming year.

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