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public:sotm:reading_2022 [2022/08/11 16:04] – [2022-08-10] rajupublic:sotm:reading_2022 [2024/03/12 06:13] (current) – [2022-11-30] admin
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 +
 +==== 2022-12-27 ====
 +Notes from https://www.bloomberg.com/news/articles/2022-12-27/alameda-lent-bankman-fried-546-million-for-robinhood-stake?srnd=premium
 +  * 8% stake in Robinhood for $546 million; 56 million shares
 +  * Antigua, New Jersey and Delaware
 +  * Emergent Fidelity Technologies, the corporate entity that owns the Robinhood shares
 +  * Bankman-Fried owns 90% of Emergent and Wang owns the rest
 +
 +==== 2022-12-20 ====
 +In regards to https://www.wsj.com/articles/bank-of-japan-blinked-in-standoff-with-markets-11671542586
 +  * Well written; easy to understand. Checkout the other articles from the author - James Mackintosh.
 +
 +==== 2022-12-14 ====
 +Notes from https://finance.yahoo.com/news/interactive-brokers-ibkr-records-decline-154203535.html
 +  * Daily Average Revenue Trades (DARTs)
 +
 +==== 2022-12-12 ====
 +Notes from  https://www.bloomberg.com/news/articles/2022-12-12/morgan-stanley-goldman-say-earnings-are-biggest-risk-for-stocks
 +  * Strategists
 +    * Morgan Stanley’s Michael Wilson
 +      * ranked No. 1 in the latest Institutional Investor survey
 +    * Goldman Sachs's David Kostin
 +
 +==== 2022-12-07 ====
 +Notes from https://www.bloomberg.com/news/articles/2022-12-07/lazard-ceo-sees-chance-to-hire-talented-bankers-goldman-update?srnd=premium
 +  * Virtu Financial
 +    * CEO is Douglas Cifu
 +  * Brookfield Asset Management
 +    * CEO Bruce Flatt
 +    * Toronto-based alternative asset manager
 +    * $125 billion of capital to deploy as of the end of September
 +    * acquired control of Oaktree Capital in 2019
 +  * MSCI US REIT Index
 +  * BNY Mellon
 +    * Roman Regelman, CEO of securities services and digital
 +  * Blackstone
 +    * CEO Steve Schwarzman
 +  * Cboe Global Markets
 +    * Chicago-based
 +    * CEO Ed Tilly
 +    * operates Cboe Digital
 +    * the traditional model where customers are represented by their agents, and those brokers or agents are part of the exchange
 +    * got into cryptocurrencies this year with the acquisition of Eris Digital Holdings LLC
 +  * Citigroup
 +    * CEO Jane Fraser
 +    * October and November were good months in terms of trading activity
 +  * U.S. Bancorp
 +    * CEO Andy Cecere
 +  * Allstate 
 +    * CEO Tom Wilson
 +    * target combined ratio
 +  * Apollo Global Management
 +    * CEO Marc Rowan
 +    * credit-focused firm
 +    * India and the Middle East are attractive
 +    * AUM $523 billion asof 2022-09
 +  * Lazard
 +    * CEO Ken Jacobs
 +    * boutique investment banks Moelis & Co. and Perella Weinberg Partners
 +    * Ken Moelis, founder and CEO of Moelis
 +
 +==== 2022-12-06 ====
 +Notes from https://www.livemint.com/market/stock-market-news/investors-yank-money-from-commercial-property-funds-pressuring-real-estate-values-11670329761658.html
 +  * The Blackstone and Starwood funds are the two largest nontraded real-estate investment trusts
 +    * Blackstone's real-estate fund is known as Blackstone Real Estate Income Trust Inc., or BREIT.
 +      * AUM = \$69 billion.
 +      * quarterly redemption limit of 5% of the fund’s net assets
 +    * Starwood Capital Group's fund is \$14.6 billion
 +      * 
 +  * BlackRock, M&G Group, Schroders PLC, CBRE Investment Management and Legal & General
 +  * FTSE NAREIT All Equity REITs Index
 +    * tracks publicly traded landlords
 +  * Appraisals look backwards, and markets look forward
 +  * Washington State Investment Board
 +    * state pension fund
 +
 +==== 2022-12-05 ====
 +Notes from https://www.bloomberg.com/news/articles/2022-12-04/dollar-edges-up-amid-focus-on-jobs-report-china-markets-wrap?srnd=premium
 +  * Morgan Stanley’s Michael Wilson, one of the US stock market’s most-vocal skeptics
 +
 +==== 2022-12-02 ====
 +Notes from https://www.wsj.com/articles/psychos-in-the-c-suite-personality-disorder-exploit-ftx-elizabeth-holmes-scam-guilt-empathy-deceit-prison-11669926950?mod=hp_opin_pos_3#cxrecs_s
 +  * By Peggy Noonan
 +  * Elizabeth Holmes was just sentenced to 11 years in federal prison
 +  * Visionaries often leave the details to others!
 +  * To the Democrats Sam Bankman-Fried was the biggest thing since George Soros.
 +  * FTX’s new CEO, John Ray
 +  * the crypto firm BlockFi filed for bankruptcy in New Jersey and Bermuda
 +  * public weal
 +  * Most interesting in psychopaths is the lack of remorse. They don’t like being caught—that upsets them—but they don’t mind causing others harm. It’s their superpower.
 +
 +Notes from https://www.bloomberg.com/news/features/2022-12-02/inside-sam-bankman-fried-s-bahamian-penthouse-after-ftx-s-collapse?srnd=premium
 +  * Terra and Luna collapsed, wiping out $60 billion
 +  * Terra and Luna were almost openly a Ponzi scheme
 +  * only kibitzing on parts of the discussion
 +  * laptop (an Acer Predator)
 +  * skin-colored patch
 +  * transdermal antidepressant, selegiline
 +  * takes Adderall—“10 milligrams at a time, a few times a day”
 +
 +==== 2022-12-01 ====
 +Notes from https://www.wsj.com/articles/blackstone-limits-redemptions-from-real-estate-vehicle-stock-sinks-11669920880
 +  * BREIT
 +    * nav = $69 billion
 +    * designed to generate steady cash flows
 +    * ytd: 9.3%, since inception: 13.1% per year, annualized distribution rate: 4.4%
 +    * redemption limits = {monthly: 2%, quarterly: 5%}
 +    * invested heavily in rental housing and logistics in the Sunbelt region of the U.S.
 +    * $9.3 billion of immediate liquidity
 +    * $9 billion of debt securities it could sell if needed
 +    * selling its 49.9% stake in MGM Grand Las Vegas and the Mandalay Bay
 +      * the deal values the properties at $5.5 billion
 +      * will deliver a profit of more than $700 million to BX
 +      * BX bought them less than three years ago
 +      * will give BREIT $1.27 billion in cash
 +  * BREIT redemptions
 +    * bulk of the redemption requests are coming from Asia
 +  * BX
 +    * market cap ~ $100 billion
 +
 +Notes from https://www.wsj.com/articles/credit-score-washing-identity-theft-11669848797
 +  * credit washing
 +  * Most negative information, like missed payments, stay on a person’s credit reports for seven years
 +  * Credit-repair companies
 +    * Turbo Solutions Inc
 +      * broke federal rules by collecting fees before providing services
 +    * The Credit Game
 +    * DoNotPay
 +
 +Notes from https://www.barrons.com/articles/costco-november-sales-51669916824?siteid=yhoof2
 +  * the SPDR S&P Retail ETF (XRT)
 +
 +Notes from https://www.cnn.com/2022/02/05/business/costco-kirkland-signature/index.html
 +  * Private brands of Walmart - Great Value household staples and George men’s clothing
 +  * Private brands of Target - Cat & Jack kids’ clothing and Good & Gather food
 +  * “If you get 99 things right and one thing wrong, people are going to remember the one thing. So you don’t get it wrong,” said Costco finance chief Richard Galanti.
 +
 +==== 2022-11-30 ====
 +  * three of the largest nonprofit blood centers in the U.S. Vitalant, OneBlood and the American Red Cross
 +From https://www.wsj.com/articles/early-alameda-staffers-quit-after-battling-sam-bankman-fried-over-risk-compliance-concerns-11669810723
 +  * the firm's trading capital was commingled with operating cash (money dedicated to run the firm)
 +  * Jane Street Capital LLC, a firm that has extensive risk controls
 +  * risk, compliance and accounting
 +From https://www.wsj.com/articles/u-s-government-to-backstop-mortgages-above-1-million-mark-for-first-time-11669740331
 +  * The maximum size of home-mortgage loans eligible for backing by Fannie Mae and Freddie Mac will rise to \$1,089,300 next year in a few expensive markets, from \$970,800 this year
 +
 +  * For most parts of the country, loan limits will rise to \$726,200 from a 2022 maximum of \$647,200
 +  * By law, loan limits are calculated annually using a formula that factors in average housing prices.
 +  * about 100 counties and county equivalents, out of about 3,000 across the U.S. are designated as high-cost markets
 +  * Mortgages within the limits are called conforming loans. Mortgages that exceed the limit are known as jumbo mortgages.
 +  * Conforming loans have lower closing costs, require smaller down payments
 +  * Fannie and Freddie don’t make loans. Instead, they buy mortgages from lenders and package them into securities that are sold to investors
 +  * Fannie and Freddie backstop roughly half of the \$13 trillion mortgage market
 +  * the Housing Policy Council, a housing-industry trade group that generally favors boosting the role of private capital in the mortgage market
 +
 +==== 2022-11-20 ====
 +From https://www.wsj.com/articles/sam-bankman-fried-ftx-alameda-bankruptcy-collapse-11668824201
 +  * Bughouse chess, a fast version of the game played by four players on two boards
 +  * Coinbase Global Inc.’s direct listing gave the company a blockbuster $65 billion market capitalization after its first day of trading
 +  * the red-ink phase common to startups
 +  * Sequoia Capital, the firm that has backed some of the biggest companies in Silicon Valley
 +  * the video game “League of Legends,”
 +  * retired Boston Red Sox slugger David Ortiz
 +  * CoinDesk published an article
 +  * Changpeng Zhao, the billionaire head of Binance, the world’s largest crypto exchange
 +  * rival crypto exchanges Coinbase and Kraken
 +  * On Nov. 10, WSJ reported that FTX had used customer funds to prop up Alameda
 +  * "Sam Bankman-Fried" -> “Scam Bankrun-Fraud”
 +  * BlockFi halted withdrawals on Nov. 10 and is preparing to file for bankruptcy
 +  * Crypto lender Genesis paused withdrawals on Nov. 16
 +  * Mr. Bankman-Fried’s father, Stanford tax-law scholar Joseph Bankman
 +
 +From https://www.wsj.com/articles/crypto-bank-silvergate-battles-ftx-contagion-fears-11668910608
 +  * crypto-trading platform FalconX is no longer using Silvergate
 +  * S3 Partners
 +  * The most shorted bank has a pending merger, and betting against it is part of an arbitrage strategy.
 +  * KBW Regional Banking Index
 +  * Customers Bancorp Inc
 +  * Signature Bank
 +  * Silvergate Capital Corp.
 +    * helps institutional investors move dollars into and out of crypto-trading platforms through its Silvergate Exchange Network
 +    * Silvergate Exchange Network links the bank accounts of investors and exchanges
 +    * was a commercial real-estate lender a decade ago
 +    * It only holds dollars. It doesn’t hold cryptocurrencies
 +  * FTX held some deposits at Silvergate in an omnibus account
 +  * keep a ledger tracking the underlying customer assets, a common setup for firms that aren’t banks themselves
 +
 +==== 2022-11-18 ====
 +FTX and an old blog post
 +  * http://brontecapital.blogspot.com/2022/11/ftx-and-old-blog-post.html
 +
 +==== 2022-11-17 ====
 +New FTX CEO's Declaration to Bankruptcy Court
 +  * https://s.wsj.net/public/resources/documents/FTXFILING.pdf
 +tags | FTX Bankruptcy filing
 +
 +From https://www.wsj.com/articles/ftxs-unraveling-is-latest-blow-to-softening-ad-market-11668681001
 +  * Dentsu Inc., handles some ad-buying and creative-development tasks for FTX. It had required payments from FTX in advance.
 +  * 30 seconds of ad time during the Super Bowl costs $7 million.
 +  * model Gisele Bündchen
 +  * FTX’s two crypto exchanges—Bahamas-based FTX Trading Ltd. and U.S.-based FTX U.S.
 +  * stadium-naming rights, league sponsorships
 +  * sports-sponsorship business
 +  * spending money hand over fist
 +
 +==== 2022-11-15 ====
 +From https://www.bloomberg.com/news/articles/2022-11-15/buffett-bets-5-billion-on-chipmaking-with-new-stake-in-tsmc?leadSource=uverify%20wall
 +  * Berkshire Hathaway acquired about 60 million ADRs in TSMC in the three months ended September
 +  * TSMC
 +    * Some of its clients are Nvidia, Qualcomm
 +    * exclusive supplier of Apple's custom Silicon chips
 +    * has taken over from Intel Corp. as the firm advancing the cutting edge of chipmaking
 +    * Taiwan’s most valuable company
 +    * can make the world’s most advanced chips
 +
 +From https://www.wsj.com/articles/mortgage-rates-are-high-because-nobody-is-buying-mortgages-11668460705
 +  * Fed holds $2.7 trillion of Mortgages
 +  * Bofa at the end of 2021
 +    * \$979 billion bond portfolio of which \$622 billion is MBS
 +    * Out of the \$622 billion MBS, it will hold \$554 to maturity and $68 billion is up for sale.
 +  * banks are now opting to hold mortgages, instead of mortgage bonds, on their books
 +
 +==== 2022-11-10 ====
 +From https://www.sfchronicle.com/bayarea/article/Here-s-how-many-Twitter-employees-were-laid-off-17560274.php
 +  * Twitter laid off 784 workers in San Francisco, 106 employees in San Jose and 93 in Santa Monica
 +
 +==== 2022-11-09 ====
 +From https://www.wsj.com/articles/redfin-shuts-home-flipping-business-lays-off-13-of-staff-in-slumping-housing-market-11668010665?mod=hp_lead_pos10
 +  * Opendoor - the biggest home-flipping company
 +  * Redfin, Opendoor
 +  * tech-powered real-estate businesses known as iBuyers
 +  * Redfin started testing iBuying five years ago
 +  * The home-flipping business accounted for about 43% of Redfin’s total revenue in the second quarter.
 +  * the company will likely lose at least $22 million on the home-flipping operation for the full year of 2022. 
 +
 +From https://www.bloomberg.com/news/articles/2022-11-09/tom-brady-tiger-global-among-investors-hurt-by-ftx-fiasco
 +  * Investors in FTX.com - Tiger Global Management, Third Point and Altimeter Capital Management, Brevan Howard Asset Management’s Alan Howard, the family office of Paul Tudor Jones, Millennium Management, Gisele Bundchen,Tom Brady, the Ontario Teachers’ Pension Plan, Sequoia Capital, Lightspeed Venture Partners, Iconiq Capital, Insight Partners, Thoma Bravo, Masayoshi Son’s SoftBank Group Corp
 +  * Bankman-Fried’s empire includes proprietary trading firm Alameda Research
 +
 +==== 2022-11-06 ====
 +From https://www.bloomberg.com/opinion/articles/2022-11-06/central-banks-in-emerging-markets-are-biggest-gold-buyers
 +  * Central banks bought 400 metric tons of gold in the September quarter
 +  * Gold prices plummeted in the 1990s and 2000s when some of the European central banks sold in unison
 +  * {Turkey: Lira,Egypt: Pound, Iraq: Dinar}
 +  * When a country's currency falls, its central bank buys gold.
 +  * Stacking up bullion in the central bank’s vault has long been a powerful signal to investors that a government is going to be a prudent and reliable borrower.
 +  * Iraq’s dinar is fixed against the dollar
 +  * Turkey and Egypt are key US allies
 +
 +==== 2022-11-02 ====
 +Highlights from https://www.wsj.com/articles/ad-giants-advise-brands-to-pause-spending-on-elon-musks-twitter-11667333021
 +  * Brands typically rely on agencies to help determine where to spend their ad dollars.
 +  * Morning Brew, an email newsletter publisher
 +  * Advertising accounted for 89% of Twitter’s $5.08 billion revenue in 2021.
 +  * Sarah Personette, one of Twitter’s top ad executives, resigned from the company.
 +
 +==== 2022-10-24 ====
 +Notes from https://www.wsj.com/articles/biden-aims-to-spur-drilling-with-plan-to-refill-oil-reserves-but-producers-are-skeptical-11666467900?mod=itp_wsj&ru=yahoo
 +  * The Strategic Petroleum Reserve can hold about 714 million barrels of oil
 +
 +Notes from https://www.bloomberg.com/news/articles/2022-10-24/tesla-cuts-china-prices-partly-reversing-previous-increases?srnd=premium&sref=1kJVNqnU
 +  * Tesla delivered a record 83,135 cars in China last month, including 5,522 for export.
 +  * The Shanghai plant can now produce about 1 million cars a year.
 +
 +==== 2022-10-19 ====
 +Notes from https://www.wsj.com/articles/tesla-tsla-q3-earnings-report-2022-11666139620?mod=hp_lead_pos1
 +  * Tesla
 +    * Q3 2022 = {profit: \$3.3 billion, revenue: \$21.5 billion}
 +    * Q3 2021 = {revenue: \$13.8 billion}
 +    * Q3 results
 +      * are affected by strong dollar, higher raw materials and logistics costs, and inefficiencies associated with getting car plants in Texas and Germany up to speed
 +    * Model Y compact SUV vehicle was rolled out in early 2020.
 +  * Elon Musk
 +    * Tesla's CEO and largest shareholder
 +    * Sold $15 billion of Tesla stock this year
 +  * Customers in China ordering a new Model 3 in September could expect to wait about four or five weeks to receive their car, down from around 18 weeks in July
 +  * average car sale price in Q3 2022 = \$57,000, Q3 2021 = \$49,000
 +  * average interest rate on a new-car loan in Q3 2022 = 5.7%, Q3 2021 = 4.3%
 +
 +
 +==== 2022-10-18 ====
 +Notes from https://www.wsj.com/articles/goldman-sachs-reports-43-profit-drop-confirms-reshuffling-11666094083
 +  * GS is grouping its businesses into three
 +    * investment banking and trading
 +    * asset and wealth management
 +    * Platform Solutions
 +      * house Goldman’s financial-technology platforms
 +      * specialty lender GreenSky
 +      * ventures with Apple Inc. and General Motors Co.
 +
 +Notes from https://www.wsj.com/articles/what-are-i-bonds-everything-you-need-to-know-to-earn-nearly-10-interest-11650543039?mod=livecoverage_web
 +  * $22.3 billion of I Bonds were purchased this year through September
 +  * The I Bond interest rate is based on a calculation tied to the consumer-price index.
 +  * Bonds bought from May through the end of October will earn 9.62% for six months
 +  * For example, a \$10,000 I Bond bought in October 2022 would earn an annualized rate of 9.62% for 6 months. At that point, the interest earned of \$481 would be added to the original $10,000 and the new (expected) annualized rate of 6.47% would be earned on \$10,481, resulting in another \$339 in interest for a total of \$820 in interest earned over 12 months.
 +  * I bonds aren’t available in tax-sheltered vehicles such as individual retirement accounts, Roth IRAs or 401(k)s.
 +  * Brokers and financial advisers cannot purchase I bonds for you
 +  * During the time that the I Bond is held, there are no federal taxes due. Even though you’re getting the benefit of compounding interest every six months, you don’t pay any federal taxes until you actually cash out the bonds.
 +  * There are no state or local taxes on the interest earned
 +  * Traditional bank certificate of deposits (CDs) are subject to both federal and state taxes as the interest is earned
 +  * Interest is paid in a lump sum when the bond is cashed.
 +  * An I Bond earns interest monthly from the first day of the month in the issue date, so if you purchase a bond on Oct. 20, you would get interest for the entire month of October.
 +  * The interest is compounded twice a year, accrues for up to 30 years or until you cash the bond, whichever comes first.
 +  * You can cash a minimum of \$25 at a time, and must leave at least \$25 in your TreasuryDirect account when doing partial redemptions. 
 +  * The annual I Bond purchase limits are based on the recipient, not the giver. The child could receive up to $10,000 in electronic I bonds.
 +  * You can add an additional $10,000 to the annual I Bond purchase limit with a properly registered trust
 +  * When you register your account at TreasuryDirect, you have the option to create an entity account, including trusts and partnerships.
 +  * Trusts require an account manager that can act alone on behalf of the trust
 +
 +==== 2022-10-17 ====
 +Notes from https://www.wsj.com/articles/goldman-plans-sweeping-reorganization-combining-investment-banking-and-trading-11665973368?mod=hp_lead_pos3
 +  * GS is grouping its businesses into three
 +    * investment banking and trading
 +    * asset and wealth management
 +    * fintech platforms
 +      * specialty lender GreenSky, ventures with Apple Inc. and General Motors Co.
 +  * driver of the reorg: generate steady fees in any environment
 +  * Goldman’s 2020 investor day presentation
 +  * P/B values: {GS: 0.9, JPM: 1.3, MS: 1.4}
 +  * Planning to bring in $10 billion in asset and wealth-management fees by 2024 
 +
 +==== 2022-10-11 ====
 +Notes from https://www.wsj.com/articles/cameco-brookfield-renewable-partners-to-buy-westinghouse-electric-co-for-7-88-billion-11665524511?mod=hp_lead_pos5
 +  * Cameco Corp. (CCJ) and Brookfield Renewable Partners (BEP) are Canada based companies.
 +  * Brookfield Business Partners LP (BBU) is an entity that Brookfield Asset Management (BAM) uses to operate the business services and industrial operations of its private-equity group.
 +  * Westinghouse services about half of the nuclear-power reactors in the world.
 +  * Cameco is the world’s largest publicly traded uranium company, based in Saskatoon, Saskatchewan, Canada.
 +  * BEP owns and operates renewable-power assets and is 60%-owned by BAM.
 +  * Westinghouse
 +    * Pittsburgh-based
 +    * was founded in 1886 by George Westinghouse
 +    * designed and built the world’s first commercial nuclear-power plant in the 1950s
 +    * fell into bankruptcy in 2017
 +    * BBU bought it in 2018 from Toshiba Corp.
 +
 +====2022-10-10 ====
 +Notes from https://www.wsj.com/articles/boe-offers-to-buy-more-gilts-launches-new-repo-facility-for-ldi-funds-11665384218?mod=hp_lead_pos2
 +  * BOE would increase the daily amount on offer to £10 billion starting Monday 10/10.
 +  * BOE purchased £5 billion of gilts to date, out of an available £40 billion.
 +  * BOE would launch a Temporary Expanded Collateral Repo Facility to provide cash in exchange for gilts to banks on behalf of clients managing Liability Driven Investment funds
 +
 +==== 2022-10-07 ====
 +Notes from https://www.wsj.com/livecoverage/stock-market-news-today-2022-10-04/card/bank-of-england-s-bond-buying-tails-off-ap62VVgcSqgaNxSTbYQa
 +  * So far Bank of England bought £3.657 billion
 +
 +==== 2022-10-06 ====
 +Notes from https://www.bloomberg.com/news/articles/2022-10-05/blackrock-faces-more-esg-fallout-as-louisiana-pulls-794-million?srnd=markets-vp
 +  * Louisiana is pulling $794 million from BlackRock Inc. funds
 +  * the assets would be liquidated by year-end
 +  * The article does not say where the money went to. It only says that it will be divested from BlackRock.
 +  * BlackRock's AUM at midyear - $8.5 trillion
 +
 +Notes from https://www.wsj.com/articles/u-k-bond-markets-come-under-pressure-again-11665077057?mod=livecoverage_web
 +  * Brighton Rock Group, an insurance company for pensions
 +  * The Bank of England currently holds £837.9 billion of gilts and is aiming to reduce this by £80 billion over the next 12 months
 +  * U.K. government will be selling £234 billion of bonds this financial year.
 +
 +==== 2022-10-05 ====
 +Notes from https://www.wsj.com/livecoverage/stock-market-news-today-2022-10-05/card/u-k-bond-yields-rise-as-bank-of-england-halts-gilt-buying-j5qdACpxu2JQ0FVWwScY
 +  * U.K. sovereign bonds are known as gilts
 +
 +==== 2022-10-04 ====
 +Notes from https://www.wsj.com/livecoverage/stock-market-news-today-2022-10-04/card/legal-general-seeks-to-reassure-investors-over-ldis-SijGguyiPk9fZe7ccDZ2
 +  * Legal & General Group PLC
 +    * U.K. insure
 +    * one of the largest providers of liability-driven investment, or LDI, strategies
 +    * it acts as an agent between its clients who use LDI and market counterparties
 +    * annuity portfolio
 +
 +==== 2022-10-02 ====
 +Notes from https://www.cnbc.com/2022/08/05/-santanders-tim-wennes-a-shakeout-among-mortgage-lenders-is-coming.html
 +  * Santander left the mortgage business in Feb 2022 as part of a strategic pivot to focus on higher-return services like its auto lending franchise.
 +  * Santander
 +    * a relatively small player in the mortgage market
 +    * $154 billion in assets and 15,000 U.S. employees
 +    * is part of a Madrid-based global bank with operations across Europe and Latin America.
 +  * last year - \$4.4 trillion in loan volumes; \$2.7 trillion in refinance activity
 +  * Black Knight - mortgage data and analytics provider
 +  * the largest banks in home loans, JPMorgan Chase and Wells Fargo
 +  * nonbank players like Rocket Mortgage
 +  * Out of the top ten mortgage providers by loan volume, only three are traditional banks: Wells Fargo, JPMorgan and Bank of America.
 +  * Rocker Mortgage, United Wholesale Mortgage, Freedom Mortgage
 +
 +==== 2022-09-30 ====
 +Notes from https://www.bloomberg.com/news/articles/2022-09-30/bofa-strategists-see-wall-street-rout-forcing-asset-liquidation?srnd=premium
 +  * The NYSE Composite Index, which includes US stocks, depositary receipts and real estate investment trusts
 +
 +Notes from https://www.washingtonpost.com/business/how-liability-driven-pension-funds-triggered-uk-bond-panic/2022/09/29/37fe0e46-404b-11ed-8c6e-9386bd7cd826_story.html
 +  * The entire UK government debt market is £2.3 trillion.
 +
 +Notes from https://www.bloomberg.com/opinion/articles/2022-09-30/hardly-a-surprise-pension-funds-stoked-the-uk-rout#xj4y7vzkg
 +  * British pensions have £1.5 trillion ($1.65 trillion) in assets, and about 50% of British corporate defined-benefit assets are held in bonds. As of the first quarter this spring, pensions owned 28% of outstanding UK debt, with an especially heavy presence in the long end of the curve. Private-sector pensions hold just under £100 billion in gilts with maturities over 25 years.
 +
 +==== 2022-09-23 ====
 +Notes from https://www.washingtonpost.com/business/the-cme-is-becoming-the-draftkings-of-exchanges/2022/09/23/b4ec2102-3b2f-11ed-b8af-0a04e5dc3db6_story.html
 +  * binary option
 +  * one-touch and barrier options are common in the currency world
 +  * the average daily options volume across all exchanges this month is 42 million contracts
 +    * 42 million options contracts control 4.2 billion shares (1 contract = 100 shares)
 +  * the Options Clearing Corp
 +  * the first US stock options were listed in the early 1980s
 +  * leveraged exchange-traded funds in the late 2000s
 +  * bookmakers - quants who build the market-making platforms, taking 50 cents out of every $100 bet
 +
 +Notes from https://www.wsj.com/livecoverage/stock-market-news-today-09-23-2022/card/oil-prices-hit-eight-month-lows-T1uCCSZ2SCxSvj2IYcCe
 +  * Price of Brent crude-oil futures > Price of WTI crude-oil futures
 +
 +Notes from https://www.wsj.com/livecoverage/stock-market-news-today-09-23-2022/card/energy-stocks-plunge-xjsQJHEO0QH90QRTmRb2
 +  * High-fliers like Hess, Halliburton, and Diamondback Energy
 +  * natural-gas and coal producers have largely been insulated from recent sell-offs due to insatiable electricity demand
 +==== 2022-09-19 ====
 +Notes from https://www.wsj.com/articles/this-should-have-been-a-great-year-for-gold-heres-why-it-isnt-11663526294?mod=lead_feature_below_a_pos1
 +  *  SPDR Gold Shares, the world’s largest exchange-traded fund backed by physical gold
 +
 +==== 2022-09-18 ====
 +Notes from https://www.bloomberg.com/news/articles/2022-07-31/from-profits-to-pay-jpmorgan-s-gold-secrets-spill-out-in-court
 +  * Michael Nowak
 +    * ran precious metals trading at JPMorgan for over a decade
 +    * Boss of Gregg Smith and Jeffrey Ruffo
 +    * from 2008 to 2016
 +      * was paid $23.7 million
 +      * made the bank $186 million
 +    * In 2016
 +      * made the bank $44 million
 +  * Jeffrey Ruffo
 +    * JPMorgan's hedge fund salesman
 +    * from 2008 to 2016
 +      * was paid $10.5 million
 +      * profit allocated to him was $70.3 million
 +  * Gregg Smith
 +    * JPMorgan's top gold trader
 +    * from 2008 to 2016
 +      * was paid $9.9 million
 +      * generated $117 million profit
 +  * JPMorgan's precious metals trading desk
 +    * part of the broader commodities unit
 +    * a consistent moneymaker
 +    * annual profits between \$109 million and \$234 million a year between 2008 and 2018.
 +    * trading in financial markets, physical business
 +    * trading and transporting physical precious metals makes the bank about $30 million a year on average
 +    * Hedge fund clients: Moore Capital, Tudor Investment Corp and George Soros’ eponymous firm
 +    * At least ten central banks held their metal in vaults run by JPMorgan in 2010
 +  * JPMorgan
 +    * made $1 billion in precious metals in 2020
 +    * holds tens of billions of dollars in gold in vaults in London, New York and Singapore
 +    * one of four clearing members of the London market
 +    * global gold prices are set in the London market by buying and selling metal held in a few London vaults
 +    * the biggest player among a small group of “bullion banks” that dominate the precious metals markets
 +    * cleared 40% of all transactions in the gold market in 2010
 +
 +Notes from https://www.reuters.com/markets/europe/futures-fall-us-china-tensions-grow-2022-08-02/
 +  * US is the main supporter and arms supplier to Taiwan.
 +
 +Notes from https://www.reuters.com/technology/us-considers-crackdown-memory-chip-makers-china-2022-08-01/
 +  * worldwide NAND flash memory chip production
 +    * Western Digital Corp (WDC) 13%
 +    * Micron Technology Inc (MU) 11%
 +    * YMTC 5%
 +  * U.S. officials would ban the export of tools to China used to make NAND chips with more than 128 layers
 +  * LAM Research Corp and Applied Materials are the primary suppliers of such tools.
 +  * YMTC
 +    * founded in 2016
 +    * a rising power in manufacturing NAND chips
 +
 +==== 2022-09-15 ====
 +Notes from https://www.wsj.com/articles/u-s-supplier-inflation-remained-elevated-in-august-11663161329?mod=livecoverage_amp
 +  * The producer-price index measures what suppliers are charging businesses and other customers
 +  * The Fed uses the personal-consumption expenditures (PCE) price index, as its preferred inflation measure
 +  * August PCE report won’t be released until Sept. 30
 +
 +==== 2022-09-14 ====
 +Notes from https://www.wsj.com/articles/us-inflation-august-2022-consumer-price-index-11663017630
 +  * OPIS, an energy-data and analytics provider owned by Dow Jones & Co., publisher of The Wall Street Journal.
 +  * Housing costs account for nearly one-third of the overall CPI.
 +  * Once housing costs start to rise, that momentum tends to persist.
 +  * clinches the case
 +  * Employers added 315,000 jobs in August
 +  * Unemployment rate is 3.7%
 +  * Supply-chain disruptions can be quantified by New York Fed’s index of supply-chain pressure
 +
 +Notes from https://www.wsj.com/amp/livecoverage/stock-market-news-today-09-13-2022?page=4
 +  * Shelter is the largest single component of the consumer price index.
 +  * Nasdaq was getting it in the teeth
 +
 +==== 2022-09-12 ====
 +Notes from https://www.wsj.com/articles/new-starbucks-ceo-to-learn-role-alongside-howard-schultz-11662975000?mod=hp_lead_pos11
 +  * Laxman Narasimhan
 +    * Starbucks next chief executive
 +    * He will join Starbucks in October 2022 as "incoming CEO"
 +    * 55 years old
 +    * current CEO of U.K.-based consumer-products company Reckitt Benckiser Group PLC (RBGLY)
 +    * Will take the reins from Mr. Schultz in April 2023
 +    * likes to drink a doppio espresso macchiato with milk on the side
 +    * will take 30 hours of barista training and earn the company's green apron
 +    * will become Starbucks’s fifth chief executive in its 35-year history, and the first one to come from outside the company
 +    * Target Corp. Chief Executive Brian Cornell worked with him at PepsiCo Inc.
 +    * Went to the Wharton School of the University of Pennsylvania
 +    * was a McKinsey & Co. manager, ran PepsiCo’s Latin America, Europe and sub-Saharan Africa operations before becoming CEO at Lysol maker Reckitt
 +  * Howard Schultz
 +    * Starbucks interim CEO since April 2022
 +    * bought a six-location coffee chain in 1987 
 +    * 69-year-old
 +    * wrote three books about lessons from his time at Starbucks
 +    * Starbucks' fifth-largest shareholder
 +    * left the CEO role twice before and held a seat on the board until 2018, when he explored a presidential run
 +  * Mellody Hobson
 +    * Starbucks chairwoman
 +  * Messrs. Narasimhan and Schultz
 +    * travel across Starbucks’s markets, visiting stores and roasting plants
 +  * Previous CEOs of Starbucks - Jim Donald, Kevin Johnson
 +  * Starbucks
 +    * YTD share price return = -3% vs. YTD S&P 500 = -11%
 +  * Bill George, an executive fellow at Harvard Business School and former CEO of Medtronic PLC
 +
 +
 +==== 2022-09-06 ====
 +Notes from https://www.wsj.com/livecoverage/stock-market-news-today-09-06-2022/card/credit-suisse-sheds-trust-businesses-TnBntzIPue2BIB4E6J5C
 +  * N.T. Butterfield & Son will acquire Credit Suisse's trust businesses in Guernsey, Singapore and the Bahamas.
 +  * Vaduz, Liechtenstein-based Gasser Partner Trust will take over Credit Suisse's trust business in Liechtenstein.
 +  * Trusts are complex structures often held in offshore financial centers. Investors and companies use them for estate planning and to manage assets across borders.
 +  * N.T. Butterfield acquired HSBC's Bermuda-based trust unit in 2016 and Deutsche Bank's global trust-solutions business in 2018.
 +  * Credit Suisse, a 166-year-old Zurich-based lender.
 +  * Sometime back Credit Suisse acquired First Boston Corp. and Donaldson, Lufkin & Jenrette.
 +
 +==== 2022-08-31 ====
 +Notes from https://www.wsj.com/articles/jackson-mississippi-water-crisis-drags-into-third-day-11661953108?mod=hp_lead_pos10
 +  * Jackson, Miss.
 +    * The main water-treatment plant should normally handle around 50 million gallons of water a day.
 +    * It pumped around 30 million gallons on Tuesday 2022-08-30.
 +    * predominantly Black city
 +    * longstanding tensions between the city’s Democratic-led government and the state’s mostly Republican leaders
 +
 +Notes from https://www.eatingwell.com/article/7985928/is-sun-cooked-tomato-sauce-safe/
 +  * A solar oven or solar cooker
 +    * can be used to cook using the sun's rays.
 +    * may be available at your local camping supply store.
 +    * they are typically made with aluminum or silver
 +    * the reflective panels of the cooker are curved so the sunshine hits the top and is reflected downward onto the food
 +  * sun-dried tomatoes, dried mushrooms, jerkies, rice paper, white pepper, vanilla pods and black tea
 +
 +Notes from https://neurosciencenews.com/bladness-protein-21115/
 +  * apoptosis, the process of cell death
 +  * follicles are a source of stem cells
 +  * Most cells in the human body have a specific form and function determined during embryonic development that does not change. For example, a blood cell cannot turn into a nerve cell, or vice versa. Stem cells, however, are like the blank tiles in a game of Scrabble; they can turn into other types of cells. Their adaptability makes them useful for repairing damaged tissue or organs.
 +  * The liver and stomach regenerate themselves in response to wounds.
 +  * Hair follicles are the only organ in humans that regenerates automatically and periodically, even without injury
 +  * a type of protein, TGF-beta
 +  * If the cell produces a certain quantity of TGF-beta, it activates cell division. Too much of it causes apoptosis.
 +  * Hair follicles (HFs) 
 +  * Transforming growth factor beta (TGF-ββ)
 +  * probabilistic Boolean network (pBN) model
 +  * bone morphogenetic protein (BMP)
 +  * tumor necrosis factor (TNF)
 +
 +Notes from https://www.wsj.com/livecoverage/stock-market-news-today-08-31-2022/card/date-set-for-swaps-auction-on-russia-default-protection-contracts-JF1POSrJdyXW17qEMzP3
 +  * Russia's default triggered $2.2 billion notional of CDS
 +
 +==== 2022-08-29 ====
 +  * https://www.federalreserve.gov/newsevents/speech/powell20220826a.htm - Powell's speech at Jackson Hole, Wyoming
 +
 +==== 2022-08-17 ====
 +Notes from https://www.wsj.com/livecoverage/stock-market-news-today-08-17-2022/card/crypto-lender-genesis-cleans-house-after-hedge-fund-loan-went-bad-teiYpEjTIsLQLAFqbBxh
 +  * Genesis gave a $2.4 billion loan to the hedge fund Three Arrows Capital.
 +  * Since Three Arrows went bankrupt, they liquidated its collateral.
 +  * Now Genesis is on the hook for $1.2 billion.
 +  * Genesis' parent company is Digital Currency Group (DCG).
 +
 +Notes from https://www.federalreserve.gov/monetarypolicy/fomcminutes20220727.htm
 +  * advanced foreign economies (AFEs)
 +  * the exchange value of the dollar appreciated further, surpassing its March 2020 peak against advanced-economy currencies
 +  * Desk operations
 +  * The overnight reverse repurchase agreement (ON RRP) facility
 +  * money market mutual funds (MMMFs)
 +  * System Open Market Account (SOMA) redemptions
 +  * SOMA net income would likely turn negative in coming months
 +  * GDP had declined over the first half of the year
 +  * Real goods, consumer goods, capital goods
 +  * Total PCE price inflation was 6.3 percent over the 12 months ending in May
 +    * Core PCE price inflation was 4.7 percent over the same period
 +  * the 12‑month change in the consumer price index (CPI) was 9.1 percent
 +    * while core CPI inflation was 5.9 percent over the same period
 +  * forward-looking indicators of manufacturing activity weakened broadly
 +  * Chinese economy is rebounding as the lockdowns were eased
 +  * Over the intermeeting period
 +    * nominal and real Treasury yields declined significantly
 +    * Sovereign yields in AFEs declined
 +    * Broad equity price indexes were higher, amid heightened volatility
 +    * credit spreads widened
 +    * the exchange value of the dollar continued to appreciate
 +    * One-month option-implied volatility on the S&P 500 index—the VIX—decreased
 +    * Yields on corporate bonds declined across the credit spectrum
 +    * Spreads on municipal bonds widened slightly
 +  * C&I loans
 +  * Volumes of home-purchase mortgage originations declined in May
 +  * mortgage refinance volumes continued to fall
 +
 +==== 2022-08-16 ====
 +Notes from https://www.wsj.com/articles/u-s-approves-nearly-all-tech-exports-to-china-data-shows-11660596886?cx_testId=3&cx_testVariant=cx_2&cx_artPos=0&mod=WTRN#cxrecs_s
 +  * Steve Coonen, the Pentagon’s former top China export-controls analyst
 +  * <WRAP>
 +^ year ^ Chinese imports of semiconductor \\ manufacturing equipment from the U.S. \\ in $ billions^
 +| 2017 | 2.60 |
 +| 2018 | 4.04 |
 +| 2019 | 4.14 |
 +| 2020 | 5.34 |
 +| 2021 | 6.94 |
 +</WRAP>
 +
 +==== 2022-08-15 ====
 +Notes from https://www.bloomberg.com/news/articles/2022-08-14/wells-fargo-to-cut-back-mortgage-business-after-scandals-take-toll?srnd=premium
 +  * <WRAP>
 +^ Company ^ Origination in 2021 ^ Third-party \\ servicing ^ Home loans on \\ balance sheet ^
 +| Wells Fargo  | \$205B | \$697B | \$222B|
 +| JP Morgan | \$163B | \$576B | \$177B |
 +</WRAP>
 +  * correspondent mortgage lending
 +
 +Notes from https://www.wsj.com/livecoverage/stock-market-news-today-08-15-2022
 +  * Michael Burry's firm, Scion Asset Management LLC
 +  * private-prison operator GEO Group
 +
 ==== 2022-08-11 ==== ==== 2022-08-11 ====
 +Notes from https://www.stlouisfed.org/open-vault/2022/may/how-will-fed-reduce-balance-sheet
 +  * The Fed is imposing redemption caps on the dollar amount of securities that will run off the its portfolio in any given month.
 +  * The caps will be phased in to ensure a smooth transition to the runoffs.
 +  * For June 2022 through Aug 2022, the monthly cap will peak at \$30 billion for US Treasuries and \$17.5 billion for MBS
 +  * From Sep 2022 onwards, the monthly cap will peak at \$60 billion for US Treasuries and \$35 billion for MBS
 +
 Notes from https://www.wsj.com/articles/billionaire-robert-brockman-accused-of-biggest-tax-fraud-in-u-s-history-dies-at-81-11660226505?mod=hp_lead_pos10 Notes from https://www.wsj.com/articles/billionaire-robert-brockman-accused-of-biggest-tax-fraud-in-u-s-history-dies-at-81-11660226505?mod=hp_lead_pos10
   * Reynolds & Reynolds Co   * Reynolds & Reynolds Co
Line 626: Line 1254:
     * Controlled by the Johnson family     * Controlled by the Johnson family
     * In last year: revenue = \$24 billion, operating income = \$8.1 billion     * In last year: revenue = \$24 billion, operating income = \$8.1 billion
-    * Worth $74.8 billion+    * Worth \$74.8 billion
     * 33.5 million brokerage accounts by Q1 end     * 33.5 million brokerage accounts by Q1 end
     * Currently has 57,000 staff and will add 12,000 by Q3 end     * Currently has 57,000 staff and will add 12,000 by Q3 end
Line 683: Line 1311:
   * Paul Gojkovich, a former director at Merrill Lynch   * Paul Gojkovich, a former director at Merrill Lynch
   * U.S. rules prevent individual investors from buying securities with more than 50% of the money borrowed on margin. No such limits apply to hedge funds and family offices.   * U.S. rules prevent individual investors from buying securities with more than 50% of the money borrowed on margin. No such limits apply to hedge funds and family offices.
-  * 2x leverage = $1 million borrowed for every $1 million of capital+  * 2x leverage = \$1 million borrowed for every \$1 million of capital
   * In a typical swap agreement, a bank gives its client exposure to an underlying asset, such as a stock. While the client gains—or loses—from any changes in price, the bank shows up in filings as the registered holder of the shares.   * In a typical swap agreement, a bank gives its client exposure to an underlying asset, such as a stock. While the client gains—or loses—from any changes in price, the bank shows up in filings as the registered holder of the shares.
   * Cursing was not tolerated in Archego's offices. It is a policy borrowed from Robertson’s Tiger.   * Cursing was not tolerated in Archego's offices. It is a policy borrowed from Robertson’s Tiger.
public/sotm/reading_2022.1660233888.txt.gz · Last modified: 2022/08/11 16:04 by raju