Anyone heard the rumours?

Doug Henwood dhenwood at panix.com
Mon Feb 7 10:42:13 PST 2000


DANIEL.DAVIES at flemings.com wrote:


>Heads-up, folks. I am told by those who might know that a big institution
>has taken a very big bath indeed on interest rate derivative positions, as
>a result of the Treasury's sucking up the supply of 30-year bonds and
>causing an inverted curve between 10 and 30 years. The names of Deutsche,
>Warburgs and Bank of America have been floated around on Friday and today,
>with Deutsche now denying everything and B of A looking like they might be
>in the frame if anyone is. The amount of the loss may or may not be in the
>region of US$1bn, which would be a nasty loss for any bank to take.
>
>Anyone heard any spin?

The goldbugs are all over this too.

But remember, trouble means a bailout. And, as we've learned a hundred times now, "bailouts are bullish." Except maybe the 101st, or 102nd time.

Doug



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