Monthly Archives: August 2010

Search for Yield, Part II: ‘Junk’ Bonds Hit Record – WSJ.com

U.S. companies issued risky "junk" bonds at a record clip this week, taking advantage of keen investor appetite for returns amid declining interest rates and tepid stock markets. For the year, the volume of U.S. junk bonds has exceeded $155 … Continue reading

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Derivatives Huge Part of Goldman Business

WSJ 8/9: At Goldman, Derivatives were 25%-35% of Revenue A memo sent to the panel Thursday night by the New York company included an analysis of derivatives-based revenue at Goldman from 2006 through 2009, said the person familiar with the … Continue reading

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I-Banks Adjusting to Dodd-Frank Law Without Profit Hit

WSJ 8/9: Street Ready to Slim Down From Bank of America Corp. to Goldman Sachs Group Inc. to Morgan Stanley, executives are deciding the fate of their proprietary trading and private-equity activities. The Dodd-Frank law restricts financial institutions from trading exclusively for their own accounts, … Continue reading

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May 6 Flash Crash Likely to Happen Again

WSJ 8/6: Legacy of the 'Flash Crash': Enduring Worries of Repeat Three months later, many market veterans have arrived at a disquieting conclusion: A flash crash could happen again because today's computer-driven stock market is much more fragile than many … Continue reading

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Wall St. Business Models Changing Fast

NYT 8/5: Wall St. Faces Specter of Lost Trading Units But on Washington’s orders, Goldman is now considering a step that once would have been unthinkable: disbanding the corps of market wizards at the heart of its lucrative trading operation. … Continue reading

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Tax Rate Increase History from Arthur Laffer, Nashvillian

WSJ 8/2: The Soak-the-Rich Catch-22 When President Kennedy cut the highest income tax rate to 70% from 91%, revenues also rose. Income tax receipts from the top 1% of income earners rose to 1.9% of GDP in 1968 from 1.3% … Continue reading

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Deflation Fears from Superinvestors Gross and Grantham

WSJ 8/2: Big Investors Fear Deflation "Deflation isn't just a topic of intellectual curiosity, it's happening," says Mr. Gross, who runs the $239 billion mutual fund Pimco Total Return Fund, citing an annualized 0.1% decline over the past two years … Continue reading

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