Morning News (S&P: Student Loans a “Bubble”)

Updated on

Every morning the Street of Walls team puts out an update on market levels, today’s top stories, and active M&A deals.

Today’s Top Stories:

  • KKR Private Equity Results: Kohlberg Kravis Roberts (KKR) released their 4Q 2011 earnings results this morning.  KKR reported $0.33 vs. consensus expectations of $0.72 http://bit.ly/Ar4KmN
  • Gross Getting into Treasuries: Bill gross raised Treasuries to 38% of his Total Return Fund, the highest level since Jul ’10 http://bloom.bg/whhxk4
  • Homebuilding Coming Back: the head of the National Association of Home Builders says industry optimism is on the rise http://bit.ly/ACqv5k
  • RBS Layoffs: cut as many as 300 people from its equity cap markets/cash equities business after failing to find a buyer for the unit (BBG)
  • Student Loan Bubble: S&P says student loan debt could be next financial bubble http://lat.ms/y2sgfA
  • Credit Suisse Investment Banking Results: Credit Suisse (CS), the Swiss investment bank, reported 4Q earnings results this morning.  CS reported a net loss attributable to shareholders of CHF 637 million and Core Results pre-tax loss of CHF 998 million http://bit.ly/xZInVZ
  • LinkedIn Showing Strong Results: LNKD +8% very strong earnings and boots guidance
  • Housing Foreclosures: Bloomberg reports that BAC, JPM and 3 other US banks have reached a $25B settlement w/ 49 states and the federal govt to end a probe on abusive foreclosure practices
  • Diamond Foods Scandal: P&G said to have decided it will seek to end sale of its Pringles snack business to Diamond Foods
  • Avenue Makes Bet on MX: Avenue Capital Management has disclosed a 52.1% stake in the total outstanding common shares of MagnaChip Semiconductor (NYSE:MX) http://bit.ly/xBEBcP
  • Marathon Updates VVI: Marathon Asset Management has made the a few 13D filings this week. They have increased their stake to 19.56% of the total outstanding common shares of Viad Corp. (NYSE:VVI)http://bit.ly/yzFgWG

Economic Calendar:

  • 8:30am, Trade Balance, Dec., est. -$48.5b (prior -$47.8b)
  • 9:55am, UMich consumer confidence, Feb., P, est. 74.8 (prior 75)
  • 12:30pm, Fed’s Bernanke speaks on housing in Orlando
  • 12:50pm, Fed’s Pianalto speaks on housing in Cleveland
  • 1pm: Baker Hughes rig count
  • 2pm, Monthly Budget, Jan., est. -$34b (prior -$49.8b)

M&A Watch:

  • Weekly M&A Trends: This week saw some big jumps in Debt underwriting and M&A activity. Announcedinvestment banking M&A increased +22% from the prior week to $34bn, M&A volumes are still very low for the start of the year http://bit.ly/vZUMkZ
Disclosure: I do not have a position in any stocks mentioned in this article, do not have a plan to initiate a position within the next 72 hours.
Disclaimer:  The information, opinions, material, and any other content provided in this article is for informational purposes only and is not to be used or considered an offer or solicitation to buy or sell securities, investment products, financial instruments, or to participate in any particular investment strategy. The information, opinions, material, and any other content provided in this article does not constitute as a recommendation or as advice to buy or sell securities, investment products,  financial instruments, or to participate in any particular investment strategy.

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