Season’s greetings to all my readers

I am in need of a rest, long walks in the snow, and good cheer – you probably are too. Season’s greetings to one and all; I hope Santa brings you whatever you asked for. DEM will be back next year. Meanwhile, happy Christmas.

US M/A activity to plummet?

Bloomberg gives use what might unkindly be called a sell signal: Nomura Holdings Inc., Japan’s biggest brokerage, plans to hire about 20 bankers in the U.S., part of efforts to regain lost share of the world’s largest mergers and acquisitions advisory market. Make of that what you will, but anyone who is convinced that the […]

IRB PD variation, US style

From the FED, what might be interpreted as the case for the prosecution in the case of Bank Investors vs. the IRB:

Manipulating Codere

Matt Levine reports: Blackstone Group LP bought credit-default swaps on troubled Spanish gaming company Codere SA, then agreed to roll a $100 million revolver for Codere on favorable terms in exchange for Codere agreeing to make an interest payment on some bonds two days late, thus creating a technical default and triggering the CDS, pocketing […]

Cost benefit fail

From the Guardian: The bill for cleaning up the huge Sellafield nuclear plant in Cumbria will rise even higher than its current estimated level of £70bn as operators struggle to assess the full scale of the task, according to sources close to the project. It is the season to be generous so I will merely […]

Too big to break up

Mark Roe has an interesting point: are the mega-banks so large that the usual market mechanisms by which bad management is punished blunted by the funding benefit of size? For industrial conglomerates that have grown too large, internal and external corporate structural pressures push to re-size the firm. External activists press it to restructure to […]

Liquidity, innit?

The ongoing debate about CCP collateral is interesting. The claim at its simplest is that even very good quality bonds – US T-bills for instance – are not perfect collateral because they cannot be turned into cash immediately. As Reuters reports: Lawrence Sweet, senior vice president at the New York Fed, said last week that […]