US CLO market
booming: CLO issuance hit a new post-2007 record in November. 2012 volume
will likely climb to about $51-52 billion, versus $12.5 billion in 2011. That’s
a giant leap for a market that produced just $15 billion of new vehicles during
the extremely lean years of 2008-2010. With CLO AAA tranches currently priced
in the LIBOR+130-140 range (~A/BBB unsecured), investors look to pile in.
[Note: Complements the piece yesterday pretty well]…Source: http://oddlyrelevant.blogspot.com/
Bullish on Amazon?
Long UPS: While USPS fails to compete (this is no news) and racked up $15.9
bn annual loss, UPS and FedEx are “the modern-day equivalents of the
pick-and-shovel sellers to the old California gold rush” (Paul Price). In
particular, UPS is trading at its 2nd lowest valuation in 2 decades;
and if one were to believe the oligopolistic nature of the business as well as
continuous secular growth in eCommerce, the runway remains long and upward sloping.
[Note: A scalable, hard-to-replicate business indeed]…Source: http://www.businessweek.com/articles/2012-12-05/amazons-holiday-run-helps-put-ups-in-prime-position
Old rivalries stir in
Japan and Korea: The 2 countries will pick their new leaders within 3 days
of each other with a strong presence (and support) of independent candidates.
Here’s the difference: (1) Japan has a harking to the old days and is tempted
to look back, while Korea feels the need to forge forward; (2) Korea is
concerned about how to spread wealth more evenly, while Japan is primarily
worried about producing growth of any kind. (3) Foreign issues have little
impact to South Korea’s election but quite a bit (of China) to Japan. [Note:
Korean culture is the hip thing in Asia, somewhat indicative of future
potentials]…Source: http://www.ft.com/intl/cms/s/0/0358c796-3e24-11e2-93cb-00144feabdc0.html#axzz2E8tXTHGU
Putin’s isolated
battle against corruption: Between 2005 and 2012, corruption rose from 10th
to 3rd in the concerns of ordinary Russians, while bureaucratic
corruption has gone widely prevalent and amorphous in Putin’s 12 year reign. Working
in isolation at his Novo-Ogaryovo residence, this time Putin decides to take on
graft in his own circle. [Note: A bold and wise move—and the right direction
for the country]…Source: http://www.economist.com/news/europe/21567384-vladimir-putin-has-initiated-some-high-profile-battles-against-corruption-many-he-seems
What’s on Malcolm
Gladwell’s bookshelf? [Note: Lots of books about prisoner/criminal
psychology, law and order, and novels.]…Source; http://www.farnamstreetblog.com/2012/11/whats-on-malcolm-gladwells-bookshelf/
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