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Friday, August 17, 2012

Oil rises for 3rd straight day, tops $95


Oil prices rose Thursday after hopeful news about housing permits suggested that oil demand could rise, too.
On the New York Mercantile Exchange:
Benchmark crude rose $1.27 to end at $95.60 per barrel.
Wholesale gasoline fell a fraction of a penny to finish at $3.0832 per gallon.
Heating oil rose 3.77 cents to end at $3.1229 per gallon.
Natural gas fell 2.4 cents to finish at $2.7240 per 1,000 cubic feet.
On the ICE Futures exchange in London:
Brent crude rose 96 cents to end at $115.27 per barrel.

Markets and debt capital




Relations are developed by the debt markets and capital with the key players in the bond markets and stock one of the most important features that distinguish this market from its competitors. This means that Wen Vinnchal Markets in well-positioned to meet the highest possible level of the needs of its customers, with the ability to provide customized services too.

I treated the debt markets and capital with government institutions and other quasi-governmental organizations to help them to provide their financial needs; in addition to dealing with large institutional entities in this regard. We have worked hard to build strategic partnerships in both the UK and Europe and the Middle East, in order to enable the debt markets and capital to respond quickly and efficiently to changes in economic environments of local, and to ensure the highest level of local expertise to deal with financial issues.

Can debt markets and capital to help clients from institutions to increase their capital by the following means:


Listing on the Stock Exchange
A company may decide, when you get to a certain stage of their growth cycle, to ask for subscription shares, or to resort to the public that the initial offer put forward years. May be a primary goal of this, simply, the capital increase, or to provide liquidity for current shareholders, or for reasons of further projects.

Have any private company to answer a number of questions before agreeing to vote of any shares for subscription. It means that this is not the most appropriate routes through the company, or its owners, always, but they should study carefully all the other options. We will work in the debt markets and capital, as well as our strategic partners, with the company and their owners closely to help them in decision-making process. The listing on the Stock Exchange was the best way, we will work closely with our partners in all stages of the transition to a successful listing on the stock exchange, whether the insertion in the local stock exchange, or international.
 

Sale of assets of private financial
Private companies sometimes resort to selling some of its shares in a manner sale financial assets, rather than trying to provide financial liquidity of the market open, so that the process of selling securities to a relatively small number of investors elect. This method allows to choose the new shareholders the right to the requirements of the company, and also allow to give up a percentage of its assets is less than allowed by the process of listing on the stock exchange.

In this regard, the debt markets and capital in a good position to help private companies is formatted to be listed on the stock exchange, in the process of sale of assets of private financial and capital growth, with its broad base and a very respectable of investors, both in the Middle East and the world.


Issuance of debt securities
The issuance of corporate bonds, and still is, the motive behind the market to allow corporate entities to collect money without having to sell some shares, and to preserve the structure of their owners at the same time. We work, we and our partners, with the company that issued bonds during each stage of the process of issuing debt securities, and we can assist in the endeavor to obtain a credit rating if it was in the interest of our client.

The team help companies to get loans in various forms; whether local or international; either in the form of banknotes normal, or in the form of a secondary securities or convertible into cash, or at the form of instruments, to name a few.
     

Guaranteed loans
Can debt markets and capital assistance to secure loans for certain types of guarantees, such as real estate, aircraft and stocks and bonds, which allow the release of the capital, and then re-invested to increase the total returns to an investment portfolio.

The provision of property as collateral for the obligation of the debtor, will reduce the personal risk to the creditor, and thus reduce the interest payments on the borrower.

Dependent rate of the loan to value (LTV) on the type of security provided, and not appreciated according to each case separately.


Direct lending
Can debt markets and capital across developed excellent strategic partners, and their relationships with banking institutions, to find sources for loans by a wide range of institutions, corporate investors from our customers, to ensure that certain conditions provide the best soft.

Time to Pick Up Some Gold




Gold has clearly evolved into a call option on global quantitative easing. Don't think of it just as the stuff your dentist puts in your teeth or the thing your girlfriends gets you to wrap around her finger anymore. I don't think that the Federal Reserve will implement QE3 at its September 16-17 meeting, or even next year. This shocking realization will be bad for gold prices.

However, Europe is a completely different kettle of fish. Having just spent two months there, I can tell you with great certainty that the economic conditions are far more extreme than any economic data releases are indicating so far.

So the ECB has to launch its own QE through a second tranche of the LTRO or some other vehicle of at least €500 billion - €1 trillion. While most of this money will be used to buy high yield European sovereign bonds, some will spill over into the gold market, and that will be good for prices.

I can't tell you how bad things are in Italy. I just visited the main middle class shopping district in Milan. The sales were offering discounts of 70%, 80%, and 90%. They were literally throwing inventory out the door. I'm talking pants for $5 and overcoats for $25. I ended up buying four suitcases, those at 50% off, and filing them up with clothes for everyone I know. I got clothes for the kids, cloths for distant relatives, even clothes for people I don't like. And it barely made a dent on my credit card.

The attraction of the September 2012 $148-$151 call structure is the following. The $151 strike is just below rock solid support for gold that has held for several months. The September expiration allows us to take out 90% of the profit before the Fed gives us the bad news on no QE3 next month. Gold could well keep moving sideways until then, which is why I am not rushing out and buying out-of-the-money calls. This all happens going into the traditional seasonal strength of the Indian wedding season, Christmas in the West, and the Chinese Lunar New Year.

By leveraging up an out of the money call spread in a limited risk position, I get an outsized return. This is a bet that gold will move up, sideways, or down no more than 3% over the next four weeks. If this happens, the call spread will rise in value from $2.42 to $3.00, a gain of 24%. This is why I went for a heavy 10% weighting.