Wednesday links: underdiversified and overleveraged

12Mar08

“[Credit] spreads won’t tighten until sellers are exhausted.” (Accrued Interest)

“(T)he fact that people are buying credit protection on Treasury bonds at non-negligible prices does go to show how crazy the markets are right now.” (Market Movers)

“The U.S. is now ground zero for global inflation.” (Mankiw Blog)

Add TSLF, or Term Securities Lending Facility, to your Fed lexicon. (Interfluidity, Economist’s View, naked capitalism, Aleph Blog, FT Alphaville, Calculated Risk, Econbrowser)

TIPS did not like the introduction of the TSLF. (Alea)

The Fed’s previous easings have not exactly steadied the stock market. (MarketBeat)

The stock market, on average, moves up after a big move up. (Crossing Wall Street)

“The lesson is that every business cycle is different as are rules for timing the cycles with an eye on maximizing the potential for gain.” (Capital Spectator)

Long munis, short treasuries still looks like an easy trade. (Barrons.com)

Morningstar Inc. (MORN) remains in expansion mode. (InvestmentNews)

What the “junk mail indicator” is saying about gold. (Kirk Report)

Speaking of junk mail, Lenny is back! (Daily Options Report)

Bailing out the hedge funds your new employer purchased from you is not a good way to start your tenure as CEO. (Market Movers)

Should KKR pull the plug on its IPO? (DealBook)

Why was Carlyle Capital so undiversified and overleveraged? (breakingviews.com via DealBook)

Why do earnings announcements, and the subsequent surge in volume, lead to higher returns? (NBER via Economist’s View)

Why does popcorn cost so much at the movies? (SSRN.com)

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