Next up: Commercial Loans to Bear Brunt of Future US Bank Losses – McKinsey expects  the US banking and securities industry to incur losses averaging $125 billion per quarter through 2010, with the bulk of it concentrated in commercial banking loans. … estimates that total credit losses on US-originated debt from mid-2007 through [...]

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Swap Yield Curve thoughts by David Merkel – Monetary Policy is Loose — The Yield Curve is Steep – … The interest rate swap market is big — very big.  It allows parties to exchange a fixed yield over a period, for a floating rate, 3-month LIBOR [London Interbank Offered Rate], or vice-versa.  [...]

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READ THIS: Julian Robertson’s Steepener Swap Play (Shorting US Treasuries) – Simply put, Julian Robertson is the definition of a hedge fund legend. And, his success is noted by the fortune he has amassed as he now graces the Forbes’ billionaire list. He has pioneered a successful investment methodology, he has generated outstanding returns [...]

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Jumping Mortgage Rates Cloud ‘Risk Appetite’ Return – By Jody Shenn – … “If not reversed, the spike in mortgage rates has the potential to derail the two-month-old rebound in risk appetite by negatively affecting not just the consumer, but also financial institutions that are relying on elevated mortgage origination for earnings,” the analysts [...]

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