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Barclays: Swaps Compression/Central Clearing will reduce the Balance Sheet beyond Expectations

Derivatives compression (the restructuring of derivatives portfolios so that unwanted leverage exposure declines while target risk exposures remain within tolerance) will likely reduce industry notional amounts by over $60tn in 2013 (near 10% of the outstanding of ~$700tn – see

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Quick Thoughts – BAC: A Capital Tsunami

Since the Fed released guidelines for the 2014 CCAR process on November 1st, investors have expressed concern that the stress tests have been stiffened and that more capital than previously expected will be trapped in the banks in general and

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US Payments: Winners and Losers in Mobile

On Thursday, Google announced Android support for “host card emulation” which places payments credentials in the cloud and allows them to be securely accessed by mobile applications including digital wallets; in particular, NFC-enabled wallets no longer need to access the

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More from the EPA on the Ethanol Mandate

There were a number of articles yesterday suggesting that U.S. Environmental Protection Agency (EPA) is considering dialing back its requirements on the use of ethanol in 2014.  This news should not come as a surprise to anyone given the EPA’s

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September Spending Woes

We tend not to get bent out of shape (or comment on) the kabuki theater that is Washington politics these days unless it starts to impact the consumer (i.e.  Food Stamps, sequestration cuts, etc.).  In the case of the current

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August Home Prices +12.4%

The most recent CoreLogic home price data (August) remains very constructive – +12.4% year over year and +0.9% sequentially when compared to July.  This marks the 7th consecutive month of double digit increases and the 18th consecutive month of positive

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We’ve Talked Houses, How About Households?

The Census Bureau defines household very simply – “all the people who occupy a housing unit.”  To many people, household is synonymous with “family”, but that isn’t necessarily the case – the Census Bureau tracks both family and non-family households. 

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MOS Trims Expectations as Near Term Weakness Abounds

This morning, in conjunction with a sell-side conference, MOS updated its outlook for the balance of ’13, taking the opportunity to overlay what are clearly very weak industry fundamentals (both potash and phosphates) near-term with a re-affirmation of the company’s

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Some Thoughts on HD’s Q2 Results

With retail earnings dominating the morning’s news flow, we thought we would offer some (brief) commentary on Home Depot’s (HD) Q2 results. There is no quibbling about the comp – +10.7%, a full 400 bps above consensus with the U.S.

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The EPA Speaks on the 2013 and 2014 RFS

Consistent with the timing in years past, the Environmental Protection Agency (EPA) set out its final rule for the use of renewable fuels for 2013 and offered some initial commentary with respect to 2014.  Our focus is on the latter;

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