Cooperman Says Earning 13% In Stocks Takes ‘Average IQ’ [Bloomberg] On a dreary Monday morning in May, rain pelts the windows of Omega Advisors Inc.’s 31st-floor conference room in New York. Inside, Leon Cooperman and his 14 analysts are trying to come up with ways to make money amid squalling markets. In a single dismal month, half of the hedge fund’s gains for the year have evaporated.
UBS Prime Brokerage Sees Strong Asia Growth [Reuters] Switzerland’s UBS (UBSN.VX), which more than doubled the amount of assets serviced by its Asian prime brokerage business last year, expects that figure to grow at 50 percent annually going forward.
Goldman Debuts Its Bond Platform [Bloomberg] Goldman Sachs Group Inc. recently started trading corporate bonds on a new electronic platform designed to bring investors together to trade at specific times, as the New York securities firm looks to respond to a growing threat from rival trading venues that could woo customers away.
Don’t Hold Your Breath, Big Banks Will Not Be Broken Up [Forbes] Big bank CEOs may not have the most objective of voices but they are loud and powerful, and these days they are using them to defend their universal bank model more openly.
Credit Suisse Shares Hit New Lows Amid Capital Worries [Reuters] Credit Suisse shares hit a new 20-year low on Wednesday as a board endorsement of American chief executive Brady Dougan’s strategy failed to banish investor skepticism that he can meet demands for a stronger capital base. The Swiss bank is struggling to restore confidence after a rebuke from the Swiss National Bank that it needs to bolster its capital this year and a downgrade of its long-term debt by ratings agency Moody’s.
High-Frequency Trading Has Made Markets More Efficient — Larry Tabb [WSJ] Few developments in the financial markets in recent years have inspired as much debate—oftentimes rancorous—as the rise high-frequency trading, the use of supercomputers by sophisticated trading outfits to jump rapidly in and out of markets.
Barclays Libor Fine Sends Stocks Lower as Probes Widen [BusinessWeek] Barclays Plc (BARC)’s record $451 million fines for interest rate manipulation sent bank shares plunging as U.S. and U.K. authorities pursue sanctions in a global investigation of more than a dozen lenders.
Chinese Brokers Ramp Up Algo Use [TheTrade] The demand for algorithmic trading in China continues to escalate, with Nanhua Futures becoming the third brokerage in the country to team up with technology vendor Progress Software to develop its own strategies.