While we're only seeing 1 small deal from DUK in the US investment grade market today, Europe is witnessing 2 very interesting offers from Banco Santander. Their first offer is to buy back securitized product that they issued at slightly discounted prices (details here). This is certain to help liquidity in their ABS market as investors jockey positions to take advantage of this. Their second offer is an exchange similar to what Viacom did recently. They are offering to buy back several of their off-the-run existing issues at a discount in return for new benchmark sized bonds. These are both signs of healthy and growing liquidity.
More than once you've heard me note the wide spreads and lack of liquidity in the REIT sector. CreditSights has published a relatively bullish fundamental piece this morning noting that REITs are "no longer focused on last resort measures of bolstering liquidity" and they have sufficient cash or credit to meet maturities through 2012.
Quick pop quiz....are any central banks raising rates? Yes, Israel did this morning from .50% to .75% .
While this certainly shouldn't come as a surprise, apparently the FDIC will ease their rules that had precluded private equity firms from buying banks.
To those that howled in protest over the government bailout of Citi, I will now respond "should we taxpayers keep the $11B we've made so far?" (story here)
While some may express surprise that Goldman, or any other firm, allegedly gave their opinions to certain clients but not all, I am not. Let's be realistic here.....in ANY industry, clients that provide the largest revenue streams get the best service. If you spend big bucks at an airline, you get the best food, best flight attendants and comfortable big seats. If you spend loads of dough at Saks Fifth Avenue, you get a personal shopper and an early look at the Tory Burch Spring collection. No one should be surprised or offended by this gradation....remember, they are opinions and only that.
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