Aug 7

Aug 7.   (Bloomberg) “We do not expect to operate profitably in the foreseeable future,” the company [FNM] said in its filing. “We expect that we will experience adverse financial effects as we seek to fulfill our mission by concentrating our efforts on keeping people in their homes and preventing foreclosures.”  Fannie Mae, which is drawing another $10 B and change from the Treasury.
–BofE announced increase in QE yesterday, raising the prospect the Fed could follow suit at next week’s FOMC meeting, though I doubt it.
–Nonfarm payrolls today expected -325k, with unemployment rate of 9.6%.  Given ADP report and comments from the administration, I would suspect a somewhat worse result is already priced into the market, and the main bearish factor lurking ahead is supply next week.
–There was a buyer of 40k EDH11 9775/9800c spd for 11.5 at the end of the day.  Open interest was up in both strikes, 32k and 18k respectively.
–Best quote of the day was at one of the “town hall” meetings on health care, at which there seems to be an increasing number of hecklers. This comment was directed to Steny Hoyer: “…why would you guys try to stuff a health care bill down our throats in 3-4 weeks when it took the president six months to pick out a dog for his kids?”  (Video clip on

Posted on August 7, 2009 at 5:42 pm by lesliemanzara · Permalink
In: Eurodollar Options

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