通货膨胀之忧: cpi +0.1%, core +0.2%
烫手山芋无人接手之忧: previously risky-assets were under-priced, but now no buyers at all! Not even a price can be set. What you can do is just watching the spread shoot up.
房价之忧: 美房价再滑1.5%, SUB-PRIME 阴影更严重
油价上涨之忧: 美库存减少, 能源资源成本上涨之担心益盛


现在的问题是全球交易基本没人在看基本面了,都心乱了. SUB-PRIME 高度敏感,听到就恐慌, 而显然还会有其他相关的坏消息浮出水面..

下面就等失业率数字看怎样了...

For risky-assets, I am saying in the past, before the sub-prime crisis, risky-assets were so much under-priced to a large extend, and now this wave of credit crunch is all about risky-assets re-pricing. However, due to the sudden liquidity dry-up, investors are generally panic and the BUYER market of risky-assets simply disappeared. Without a buyer market's existence, there is no way to re-price the risky-assets, what would happen is ppl can only play in quality asset market, coupled with regulatory or risk-averse concern, quality assets are oversold at cheap price to cash-in. But without the re-pricing of the risky-assets, the sell-down in quality assets is far from an end.

Traders, Investment bankers are taking long leaves for the market to settle down. Simply because there is little business for credit play - leveraged buy-out, high-yield, all these hot topics in the past utilizing leverage and credit are deadly quite, IPOs and new debt issuance are postponed....

For Housing, here is the Existing single home prices that fell 1.5%, confirming that housing is still falling and is not improving. This is taken from one institute's summary, no further details yet.

force sell down of quality assets.

according to one senior banker, these instruments can easily leverage the sub-prime underlying 7-20 times!

I would be more interested to find out how the mechanism works! If any of you have the details, kindly share :)

I remember CDO is about multiple tranches of the pool of debt obligations being rated differently from high to low and the re-payment of interests/principle use waterfall method.

How does the leverage step in?