Grenville

Look in ORH's NAIC filings to get a proportional look at them. The US insurance subs have to post detailed records with the US insurance regulators in the US.

Article on Jefferies growth in energy and deals with Chesapeake: "Chesapeake Turns To Jefferies’ Eads In $28 Billion Deals: Energy" http://www.bloomberg.com/news/2012-05-17/chesapeake-turns-to-jefferies-eads-in-28-billion-deals-energy.html

I understand now. They are pulling the data from the Dalal Street filing. I guess he's now filing through that name. http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001549575&owner=exclude&count=40

I noticed that as well. I couldn't find the filing on the SEC site, so I wonder where they are getting the data from. http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001173334

I saw that. I haven't had a chance to read it. Thanks for your opinion. Also I just listened to the last earnings call for MBIA. I haven't followed the MBIA story as closely and will start to follow it now to get more insight regarding the litigation. Do you have any thoughts on how the overhang of the litigation with BAC is affecting MBIA's ability to write new business? ie. Would they be better off economically settling and writing new business versus continuing to litigate this over time?

Thank you for posting!

Important to see how this plays out re Countrywide: "Ally Hopes to End Mortgage Woes With ResCap Bankruptcy" http://www.cnbc.com/id/47411694

It's nice to see Jefferies bonds holding up much better this time around. A good sign for the equity.

Any sources on where to get quotes on the CDX IG index? All I've found is the markit website. Does IB have a ticker for it or bloomberg?

Thanks, that works!

Thank you.

More detail on the trade and background on when things started. Fascinating. "In JPMorgan Chase Trading Bet, Its Confidence Yields to Loss" http://dealbook.nytimes.com/2012/05/11/in-jpmorgan-chase-trading-bet-its-confidence-yields-to-loss/?hp

Interesting to see Jefferies involved in the financing. I wonder if the affiliate is Jefferies High Yield Holdings and maybe they'll syndicate it off to Leucadia.

Although not the best source of info, the explanation at zero hedge makes sense for the release of the 10Q: pressure on the stock price. http://www.zerohedge.com/news/chesapeake-plays-chicken-market-plunges-blinks-plunges-some-more

If the CDX Markit index for Investment grade CDS (Markit CDX.NA.IG) is tied to the JPM trades, its down 5.7% today. The quote is on their home page: http://www.markit.com/en/

I hope the Southeastern folks have a plan. From the Q:

New article from Frankel. The article 78 trial starts Monday according to her. Can BofA and SocGen undo MBIA's restructuring? http://newsandinsight.thomsonreuters.com/Legal/News/ViewNews.aspx?id=47226&terms=%40ReutersTopicCodes+CONTAINS+'ANV' Any comments from the folks following MBIA, has MBIA's Muni business been curtailed by the overhang of this case as implied by Frankel?

I agree the notional amounts are large, but I think you have to separate the types of contracts making up that exposure. A vast majority are interest rate swaps which are tied to large notional amounts, but the amount of cash transferred is an interest rate times the notional amount. It would be nice if the system didn't have as many derivatives, but it seems like derivatives are here to stay and it's something you have to understand and get comfortable with if you want to invest in the banking system.

I was just looking at JPM credit derivative notional exposure in the last 10Q: Their net credit protection sold is 206.6 bln versus 116.8bln last quarter. The overall portfolio of sold CDS is 3.1 trillion versus 2.9 trillion last quarter.

Thanks for the update, interesting to see a sixth holding. Munger has spoke positively about BAC.

Just listened to the call. From what I understand the synthetic credit position started out as a way to hedge the tail risk of the credit environment getting really bad, then over time they began to undo the hedge with a different strategy and that's where things went bad. It's also funny that at one point someone ask Jamie Dimon if there were signs that he should have been following in Q1 when problems started to show up. He mentioned he should have paid more attention to trading losses and read the newspaper. I'm just guessing he's referring to all the commotion with the "London Whale". Interesting times.

Do you mean he was trying to short the CDS he was already long? Also, in terms of mechanics, the position can move mark to market, but no real cash changes hands outside of collateral postings until there is either a default in the index or they try to close out the contract?

From the 10Q I agree it will be an interesting day tomorrow.

nice find! lol

Objectors to $8.5 bln BofA settlement to get more info http://newsandinsight.thomsonreuters.com/Legal/News/2012/05_-_May/Objectors_to_$8_5_bln_BofA_settlement_to_get_more_info/