Tim Hope 
Where the rubber meets the road: credit availability in corporate America
Posted by Tim Hope on 10/2/08 11:05 am
The hidden underbelly of the current credit squeeze does not necessarily show up as a flashing number on the TV news. Rather, the lack of routine credit availability…
The “Man Behind the Curtain”
Posted by Tim Hope on 9/24/08 10:47 am
Everyone must be familiar with the scene from the Wizard of Oz when the wizard is finally discovered behind the curtain only for him to proclaim “pay no…
Money Squeeze Rippling Beyond the Headlines
Posted by Tim Hope on 9/22/08 11:44 am
Franchisees of a major worldwide fast food chain are experiencing difficulty obtaining financing for routine business improvements through their usual lender, a major money center bank. The problem…
Tight Credit Market Driving Up Corporate Financing Costs
Posted by Tim Hope on 9/18/08 10:07 am
For the week ending September 17th, the U.S. commercial paper market has shrunk by 4.2% the largest such decline in 26 years. Commercial paper is a major source…
Energy Initiatives: History Repeating Itself?
Posted by Tim Hope on 7/2/08 10:45 am
The current spike in oil prices have policymakers calling for new initiatives in order to eventually reduce energy prices. Sadly, past political rhetoric does not seem to offer…
Venture Capital Pipeline Drying Up
Posted by Tim Hope on 7/1/08 1:56 pm
For the first time in 30 years, no venture capital backed company managed to go public in the second quarter. Industry observers cite a weak stock market along…
Black Gold and the Black Swan
Posted by Tim Hope on 6/12/08 10:08 am
In his extremely interesting book “Black Swan: The Impact of the Highly Improbable”, Nassim Taleb writes about the consequences in life, and in the financial markets, of relying…
Auction Rate Market Mess Continues
Posted by Tim Hope on 6/6/08 9:03 am
Investors who used auction rate preferred securities as an alternative to other cash equivalents are having a difficult, if not impossible, time finding liquidity. Firms that sold the…
North Dakota the next Saudi Arabia?
Posted by Tim Hope on 6/3/08 10:14 am
While estimates differ on the exact quantity of oil available, the Bakken formation in North Dakota may hold the largest deposit of oil in the lower 48 states. …
“But look how much they pay for gas in Europe!”
Posted by Tim Hope on 5/30/08 12:24 pm
In the midst of the latest rise in gasoline prices, one frequently hears a refrain similar to “…look how much they pay in Europe.” All too often buried…
Dividends Matter
Posted by Tim Hope on 5/29/08 10:58 am
Dividends have long been viewed by the investing public as one signal of corporate confidence in the health of a business. While some investors focus on the current…
Tip-off from the TIPS Market
Posted by Tim Hope on 5/19/08 11:04 am
The market for Treasury Inflation Protected Securities (TIPS) offers investors one measure of inflationary expectations. Despite significant price increases in oil and other commodities, traders in the TIPS…
Another Perspective on Oil Prices
Posted by Tim Hope on 5/12/08 10:56 am
With the price of oil making new historical records, some are making the case for continued price increases. However, some analysts believe that Saudi Arabia may increase its…
Futures Trading in Food Staples and Energy Under Threat
Posted by Tim Hope on 5/9/08 9:41 am
It is widely acknowledged that the global financial community is increasingly interconnected. A troubling trend in the current environment is emerging in the form of bans, or proposed…
Rain May Reduce Corn Output and Raise Prices
Posted by Tim Hope on 5/8/08 11:04 am
With ethanol fuel mandates in the news, policymakers should be careful what they wish for in expanding such requirements. Wet fields and cold weather may delay the planting…
Housing Data Report May Be Unreliable
Posted by Tim Hope on 5/5/08 9:06 am
The old computer adage of “garbage in garbage out” also applies to economic data. The most recent example rests in a recent report on home prices. While the…
State Pension Plans Borrow to Make Up for Lost Ground
Posted by Tim Hope on 5/1/08 11:25 am
A number of states are adopting controversial strategies in an effort to make up for funding shortfalls in their respective retirement system plans. At present there are over…
Is the High Yield Market Sending a Signal?
Posted by Tim Hope on 4/30/08 10:43 am
The performance of high yield bonds in April may be signaling that investors are beginning to creep back into riskier asset classes. As an asset class high-yield bonds…
Counterparty Risks in Credit Default Swaps
Posted by Tim Hope on 4/28/08 10:08 am
The outstanding volume of credit default swaps rose from $34.4 trillion in 2006 to $62.2 trillion by the end of 2007. Credit default swaps can be thought of…
Unforeseen Risks in Currency Derivatives
Posted by Tim Hope on 4/28/08 9:56 am
The creation and pricing of derivative contacts can be a mysterious process that holds the prospect of unexpected outcomes. Given the growth in derivative instruments of all kinds…
Bondholders May Get a Fraction of What They Expected From Defaults
Posted by Tim Hope on 4/25/08 3:54 pm
Fitch Ratings recently reported that junk bondholders may get a fraction of the historic recovery rate from bond defaults. As the credit market continues to de-lever itself, the…
U.K. Refinery Strike May Lead to a Retread of Media Images
Posted by Tim Hope on 4/25/08 3:44 pm
Get ready for a spillover media effect in the United States should a potential U.K. refinery strike come to pass. It will be the first such strike in…
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