Using Veritas to Construct the "Per…

29-04-2017 Hits:85838 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:80053 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:79912 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:84394 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:80932 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:83173 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:54186 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:82315 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:82157 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:82029 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:88072 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:85935 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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In the news...

Fitch Ratings-New York-07 July 2009: Recovery rates on defaulted U.S. bonds and loans have dropped sharply in 2009, averaging just 21.8% and 57.5%, respectively, according to a new Fitch Ratings study. This occurred as the U.S. high yield default rate - which a year ago stood at just 2.4% on an annual basis - soared to 9.5% in the first six months of 2009.

'The weak economy and still difficult funding conditions are having an unwelcome dual negative effect on credit losses - driving up corporate defaults and simultaneously depressing recovery rates,' said Mariarosa Verde, Managing Director and Head of Fitch Credit Market Research.

Fitch's report, titled 'Defaults Surge, Recoveries Sink in 2009: Understanding the Fundamental and Cyclical Drivers of Corporate Recovery Rates', discusses the many complex variables that influence corporate recovery rates, offering a multidimensional view of recovery rates - default to emergence, market price to bankruptcy resolution, firm value to debt instrument and peak to trough. Companies in Fitch's study that defaulted and filed for bankruptcy from 2000-2006 on average emerged from bankruptcy with just 35% of their pre-bankruptcy debt and 53% of their pre-bankruptcy asset value.

...

Aggressive underwriting in the leveraged finance market from 2005-2007, for example, is playing a role in current recovery trends, especially with respect to loans. Loan recovery rates in 2009 are running well below historical levels, even lower than those associated with the 2001-2002 period.

In the study, Fitch also discusses the relationship between the three main measures of recovery; the 30-day post default price, the price of the pre-petition instruments at emergence from bankruptcy and recovery outcomes from actual bankruptcy documents.

'The average 30-day price of defaulted bonds and loans from 2000-2006 was 31% and 72% of par, respectively, for companies in Fitch's study,' said Eric Rosenthal, Senior Director of Fitch Credit Market Research. 'At emergence, the same bonds and loans traded at 41% and 81% of par, respectively.'

Fitch also examines recovery rates in 2009 relative to the trading prices of the defaulted bonds at the beginning of the year.

Market prices fell so precipitously in the last turbulent quarter of 2008 that on a mark-to-market basis defaults in the first part of 2009 have resulted in limited incremental losses. Fitch finds that while the average bond recovery rate through May was just 21.8% of par, at the beginning of the year the same bonds were already trading at a very low 25% of par.

Fitch believes that defaults and grim recovery rates will not ease in 2009. The U.S. high yield default rate is expected to end the year in a range of 15% to 18%.

The new study is available on Fitch's web site at 'www.fitchratings.com' under the Credit Market Research Link.

And additional tidbits after reading The banking backdrop for 2009  and Welcome to the Big Bank Bamboozle!: (I am adding additional bank shorts to my portfolio, primarily due to the ridiculous run up in pricing, which has created new opportunities. The requisite research will be published to subscribers within a couple of weeks)