Economic Reports 08/23/07
Summary: BofA buys $2 Billion interest in Countrywide; Fed reanimation 17.25B in 3 installments; Bank of Japan leaves rates unchanged at 0.50%; Nikkei +2.6%;
The carry traders strike back; the yen -2.0% vs Euro, most in 3 years, intraday -1.6% vs $, most since Jan 05. Unemployment worsens as the spillover continues.
Commercial paper outstanding dropped $90.2 billion, or 4.23%, to a seasonally adjusted $2.04 trillion; the largest drop since 2000.
This included a 6.8% fall in ABCP, which represents about half the commercial paper market. Since Aug 8 ABCP outstanding has dropped 10.6% from 1.1829 to 1.0574 Trillion.
This isn't good news, it means that investors are shunning ABCP and banks are having to eat the risk and put it on their books.
Banks worldwide have $891 billion at risk in asset backed commercial paper facilities because of credit agreements that ensure investors are paid back when the short term debt matures.
AA asset backed paper is still backing up in the system.
Since July 27th an total increase of $20.819 Billion to 898.20 Billion. The situation in 1 - 20 day maturation is worse with an increase of $28 Billion to 761.55 Billion.
This is what happens when the system gets constipation and can't dump out...
About C$5.5 billion in notes issued by Coventree-sponsored funds have matured since last week.
The Canadian finance company said it has been unable to renew about C$4.89 billion of the asset backed commercial paper.
Canada's biggest issuer of short-term debt that is backed by assets like mortgage and auto loans, said the difference between what it costs to fund its commercial paper programs and what they earn has evaporated.
Transat A.T. Inc., Barrick Gold Corp. and other Canadian companies have reported C$237.4 million of missed payments on asset backed commercial paper from non-bank dealers and face possible redemption delays on another C$929.2 million in investments.
Hat Tip to Bloomberg
Initial Claims 08/18 -2K at 322K Full Report
Inside the number: previous revised +2K to 324K. 4 week MA +4.75K to 317.75K. Continuing unemployment +16K to 2.572M; 4 week MA +7.75K to 2.553M
STATES WITH AN INCREASE OF MORE THAN 1,000
State Change State Supplied Comment
NY +1,343 transportation, finance
NC +1,733 electronic equipment, transportation equipment, textile, rubber/plastics
CA +2,573 construction, service
The carry traders strike back; the yen -2.0% vs Euro, most in 3 years, intraday -1.6% vs $, most since Jan 05. Unemployment worsens as the spillover continues.
Commercial paper outstanding dropped $90.2 billion, or 4.23%, to a seasonally adjusted $2.04 trillion; the largest drop since 2000.
This included a 6.8% fall in ABCP, which represents about half the commercial paper market. Since Aug 8 ABCP outstanding has dropped 10.6% from 1.1829 to 1.0574 Trillion.
This isn't good news, it means that investors are shunning ABCP and banks are having to eat the risk and put it on their books.
Banks worldwide have $891 billion at risk in asset backed commercial paper facilities because of credit agreements that ensure investors are paid back when the short term debt matures.
AA asset backed paper is still backing up in the system.
Since July 27th an total increase of $20.819 Billion to 898.20 Billion. The situation in 1 - 20 day maturation is worse with an increase of $28 Billion to 761.55 Billion.
This is what happens when the system gets constipation and can't dump out...
About C$5.5 billion in notes issued by Coventree-sponsored funds have matured since last week.
The Canadian finance company said it has been unable to renew about C$4.89 billion of the asset backed commercial paper.
Canada's biggest issuer of short-term debt that is backed by assets like mortgage and auto loans, said the difference between what it costs to fund its commercial paper programs and what they earn has evaporated.
Transat A.T. Inc., Barrick Gold Corp. and other Canadian companies have reported C$237.4 million of missed payments on asset backed commercial paper from non-bank dealers and face possible redemption delays on another C$929.2 million in investments.
Hat Tip to Bloomberg
Initial Claims 08/18 -2K at 322K Full Report
Inside the number: previous revised +2K to 324K. 4 week MA +4.75K to 317.75K. Continuing unemployment +16K to 2.572M; 4 week MA +7.75K to 2.553M
STATES WITH AN INCREASE OF MORE THAN 1,000
State Change State Supplied Comment
NY +1,343 transportation, finance
NC +1,733 electronic equipment, transportation equipment, textile, rubber/plastics
CA +2,573 construction, service
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