Salient to Investors: Carl Icahn said: BlackRock have fueled a bubble in the high-yield debt market through the sale of ETFs filled with risky bonds, akin to the banks selling billions of dollars of faulty subprime mortgage bonds in 2007. The ETFs offer the appearance of liquidity and make the high-yield bond
READ MORE... →Salient to Investors: William D. Cohan writes: The CFTC voted May 16 for a watered-down compromise over requiring opaque and hard-to-value swaps and derivatives to be traded on an exchange, allowing dealers – essentially the big Wall Street banks – to continue to set the prices for these financial instruments using their black
READ MORE... →Salient to Investors: In March 2013, up to 79 percent of swaps must be backed by collateral and go through clearinghouses. Lloyd Blankfein at Goldman Sachs said clearinghouses could be the world’s biggest systemic threat. Supurna VedBrat at BlackRock said they are the new too-big-to-fail. JPMorgan is the biggest swaps dealer in the US with $72
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