Thursday, November 3, 2011

Peter Tchir of TF Market Advisors calls for position level disclosure

In a post on ZeroHedge, Peter Tchir lays out why financial institutions must be required to disclose their current asset, liability and off-balance sheet detailed exposures.

Simply put, he would like the same information he has on his own positions so that he can analyze what is going on.
One of the consequences of MF Global ... is that investors are less trusting about what "net" is.... 
I would like to see gross and net by instrument.  So bonds as one line item.  CDS as another.  Futures as another.  I would like to see gross and net on a notional basis, and DV01 basis.  It would also be helpful to know a jump to default number.  I would want sovereign exposure and European bank exposure.  Basically I would want the data that I would have on my own positions.... 
I think more disclosure is better right now, and even if the market takes some advantage of the disclosure to cause some P&L pain, that is far better than losing trust in the company and deciding to do business elsewhere.

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