Blog

Our thoughts on news that matters.

Babble < > Babel

The words Babble and Babel apparently are not related etymologically. Goldman’s new effort to create a type of federated chat to challenge Bloomberg messaging is code-named Babble. In the story of Babel, the builders of a great tower were scattered into confusion by God for their hubris. They were given different languages, and communication then […]

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We Just Kinda Cared More Than Those Other Companies

Why did a start-up create a global platform like Facebook? Why not some legacy global operator like Google or Microsoft? In a fascinating discussion, Mark Zuckerberg answers that question (at the ~10:00 mark), and several of his points apply to DealVector’s experience.   He says: We just assumed that …. someone would build it … A […]

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BOOM!! … BOOM … Boom … boom …

In absolute terms it is surprising how loud the echos of the 2008 crisis remain both in structured credit (where we really hear about it at DealVector) and elsewhere.  There was a loud boom, and it keeps bouncing around the economic canyon walls. For example, the $250+ billion litigations that were filed just last month […]

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Trustee Clock Still Ticking

Much time has passed since the great financial crash. In that time, many structured credit lawsuits against underwriters have become time-barred, as per a recent ruling. But the large cases filed this week suggest that trustees may not benefit from the same statute of limitations. Litigants claiming losses in excess of $200 billion (as of 2012) and covering over […]

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Fraud Claims Can Proceed

Despite the lengthy, complicated risk disclaimers that accompany offering documents for CDOs, fraud, apparently, is still fraud. At least for the moment, Loreley Financing’s two suits against Citi and Merrill can proceed. At DealVector we are big believers in keeping things simple, and that appears to be what the appellate judge has done in these […]

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One Size Does Not Fit All

The market is looking for the perfect bond market App. Maybe there should be many bond market Apps to fit the many types of bond markets. Take a look at the chart below which summarizes Sifma data with respect to bond liquidity. In the aggregate the bond markets turn over around 5x per year, or […]

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The Fish at the Table

Poker wisdom says to look around the table at the start of a game; if you cannot determine who the fish is, then the fish is you, and you will be served for dinner. The recent survey by ConvergEX suggests that US equity investors have now come to understand that they are the fish. In […]

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Please Sir … May I have some more?

Bond allocations are sexier than stock market IPO allocations. For example, the gigantic $49 billion Verizon bond issue from last September reportedly gave its recipients an instant 5% gain, or nearly $2.5 billion. That’s almost equivalent to the market cap of an S&P500 company. It is also roughly equal to 1.5 year’s worth of interest […]

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Mr. Lewis, your next book should be on LFT

In Flash Boys Michael Lewis has detailed the structural rigging problems of High Frequency Trading. Last year the Financial Times estimated that HFT generates over $1 billion per year in profits. Mr. Lewis details how these profits should be understood as “unfair”. He also suggests that the overall “tax” to the system could be much bigger: […]

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Deep or Wide? Industry Cloud Companies

Emergence Capital has a fascinating piece in Forbes noting that “Industry Cloud” companies have outperformed traditional cloud companies as well as the NASDAQ this year. Industry Cloud companies are vertically focused on a particular industry, as opposed to companies like, say, LinkedIn, that are horizontal across many industries. DealVector could be thought of as a type […]

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We have over $2 trillion of deals loaded on the platform already. And the industry has noticed.