Wednesday, January 30, 2013

NEW Aberdeen Islamic Funds

Aberdeen Islamic Asset Management Sdn Bhd has recently launched two shariah unit trust funds for the Malaysian market, the Aberdeen Islamic Malaysia Equity fund and the Aberdeen Islamic World Equity fund. The new funds are the company's 1st shariah retail products in Malaysia - and the 1st from a foreign fund manager under the special scheme - and come almost 8 years its parent company Aberdeen Asset Management Sdn Bhd was established to manage assets in Malaysia for institutions and corporate investors.



Malaysia: Turning promise into profit

Malaysia has long been rich in promise - rich because of its abundant natural resources, physical infrastructure and educated workforce. However it has not always maximize its advantages. In recent years that has changed as the country streamlines priorities. There is more emphasis now on efficiency, the private sector has a greater say across industries and more value is being created for shareholders. This enterprise is taking Malaysian companies overseas, too, helping businesses to sharpen their competitive edge.


Why Global then?
International markets are continually evolving, underpinned by increased movement of people, goods and capital around the world. But far from embracing 'globalization', research shows that investors tend to follow a home-country bias when it comes to their investments. As a result, they miss out on investments overseas that may offer steadier long-term returns as well as superior risk diversification.


Fund Detail
Source: Aberdeen Islamic Asset Management

Tuesday, January 22, 2013

The "Gold" Rush

India's problem of deficit is now widely known. Rising levels of both fiscal deficit and current account deficit are alarming for the country's economy. The government is using every possible tool in its hand to reduce this deficit so that India can get back on track of growth.

So now the yellow metal has been used as a tool by the government to reduce the current account deficit. Gold forms one of the biggest part of imports in India along with crude oil. So the customs duty has been increased by 2 % and now has reached 6%. Total import of gold into India in the year 2011 was more than 950 tonnes. It is estimated that there is gold worth $1.4 trillion in India. The attraction of Indians for the yellow metal has never reduced. And hence government thinks that increasing the customs duty would deter people from importing gold and thus reduce the current account deficit. Moreover the ETFs have been allowed to deposit a part of their physical gold in the banks thus increasing the circulation of gold in the economy which lies idle as of now.

However there has been a counter argument that this alone will not serve the purpose. It will only make the metal more expensive for the common man. One of the reasons why Indians love investing in gold is because they feel it is not only safe but also provides better returns compared to other investment instruments available as of now. So just raising the duty will not make much of a difference. If a real effect has to be seen then people must be provided with safer and better investment instruments only then can the attraction for this precious metal reduce.

Only time will show what effect does this increase in import duty brings with it !!!


Parth Pandya
SIMSREE Finance Forum

Combating Goldman Sachsophobia: Two resources for making Vampire Squid Calamari

Hiss...
In 2010 Rolling Stone's Matt Taibbi infamously referred to Goldman Sachs as a Vampire Squid, a term that has since then become something of an overused meme (even Taibbi has expressed ambivalence about it). He's but one individual who's tapped into disturbing imagery to describe Goldman though: For example, the other day I picked up Money and Power: How Goldman Sachs came to Rule the World by Steven Cohan, repleat with a golden snake on the cover, poised to strike. The sentiment was echoed by Alesio Rastani, the trader who upset everyone by saying Goldman rules the world.

I have no doubt that Goldman is a powerful company, and yes, they've been involved in some corrupt-as-hell deals (check out Senator Carl Levin's scathing report about them), but I sometimes suspect that the public hype around the company merely helps to reinforce it's existing self-image - presented in sanitised form in their graduate recruitment videos - as a repository for society's 'best & brightest' destined for  ubermensch greatness. Let's face it though: The average Goldman employee is statistically more likely to be a meek PhD student than a bad-ass Gordon Gekko, or for that matter, a balls-to-the-wall Richard Branson. When I ask "what kind of person aspires to work for Goldman", I see someone who seeks acceptance by the winning team. Would underdog  rogues like Chuck Norris apply for their graduate recruitment programme? Hell no!

Resource 1: What does Goldman Sachs do? An epic pearltree organisational chart
In the interests of breaking down some of the mystique around the Vampire Squid though, I made the following Pearltree diagram (Click on the title to open in a new tab):

It's not rocket science - I just went through their website and put all the pieces in order. Click on any division to expand it and see what they get up to. Over time I'm going to add more information to this, and do it for other banks too, so I'll keep you posted on that. Their securities division is the most important division in the firm, with their investment banking, investment management and 'investing and lending' (direct investing) divisions coming in tie after that. I'd say the 'investing and lending' section is worth more investigation - it's now reputed to be a source of undercover proprietary trading activities. I've included something called the 'nerve centre', which is all the departments (such as treasury and IT) that normally get overlooked, but that make the whole edifice work. Ping me a message if you think anything else should be on there.

Resource 2: Who's wants to watch Blankfein dance!



For anyone with an hour & a half to spare, I've created a Goldman Sachs video list on Youtube called, Goldman Sachs: A List of Diverse Opinions. It includes the CNBC documentary Power & Peril, which is pretty decent if you're looking for something substantial, but if you're looking for some shorter pieces, I comissioned a music video by a new band called Government Sachs, entitled Me and my Bitches. Of all the theories as to Goldman's success - superhuman talent, witchcraft etc - I think the strongest theory concerns its immense lobbying power, and the accompanying internal culture that encourages their people to seek positions of power later in life. The subtle dynamics of this process are brought out in this exchange between James Altucher and Jim Cramer (starting at around 1:20). Whatever the case, I'm going to join David Attenborough in continuing to observe the actions of the vampire squid (vampyroteuthis). If you have any insights on how to understand it's behaviour, or any other interesting videos, please do comment. Cheers

Monday, January 21, 2013

CLSA Malaysia Politics Market Strategy

There is no better time to blog about this post. After the plunge of KLCI yesterday, citing election risk, we came across an interesting research report by CLSA. As such, we would like to take this opportunity to share with you.


By CLSA,

An unexpected opposition Pakatan Rakyat (PR) coalition victory in the impending 13th General Election (13GE) would spark a broad sell-off in Ringgit assets. Changes of government are not uncommon in ASEAN. Looking at the experience of Indonesia, Thailand and the Philippines over the last decade, parliamentary control has seen significant shifts and governance has been possible despite the lack of a parliamentary majority. However, Malaysia has never experienced a change in government, meaning any change will come as a shock and with a host of uncertainties.



From an equity and debt market perspective, Malaysia has always enjoyed a political premium for the stability in governance and policy-setting stemming from majority control of parliament. The immediate financial market repercussions can be grouped as follows:

  • Equity and bond markets sell-offs are likely as Malaysia's political stability premium is erased, at least temporarily. Domestic corporate, many of which have deep links with the existing government, will be putting big-ticket decisions on hold pending guidance on continuity;
  • Ringgit depreciation can be expected in parallel with the sell-off in Malaysian assets by foreign investors. This will pose another drag on broad corporate and foreign investor confidence, especially foreign debt (though positive impact on exporters should not be forgotten).
  • And, subsequently draw unfavorable attention from international rating agencies.


Near-term policy expectations

  • PR's stated policies are broadly aimed at raising disposable incomes, improving fiscal governance (key revenue generator), and encouraging private investment.
  • Higher minimum wage and lower car prices will support consumer spending, while cutting ASEAN-topping corporate tax rate would reassure corporate and investors.
  • State oil company Petronas will get more resources to invest in rebuilding reserves.

Medium-long term policy focus

  • PR's desire to "rebalance" government contracts and agreements means negative overhangs for state-dependent entities i.e. utilities, concessionaires, construction.
  • Banks as large holders of private sector bonds will face negative risk perception.
  • Reversing GLC dominance (Iskandar not impacted) will boost private investment and FDI; Khazanah could accelerate local asset disposals, lifting Bursa's free-float.


"Rain or Shine" stock picks

  • At the macro level, companies with government-dependent contracts, licenses and concessions will see sustained negative overhang and discounting, while consumer and oil & gas sectors will benefit from rising disposable income and Petronas capex.
  • Our "rain or shine" stock picks are expected to do well under either a BN or PR-led government, with earnings underpinned by higher disposable incomes, Petronas association, overseas earnings contribution buffer and a weaker currency.
  • A market sell-off would be a prime opportunity to add to positions in Axiata, PGas, UEM Land, IHH, Sapura Kencana, AirAsia and exporters e.g. rubber glove players.


Source: CLSA Asia-Pacific

Wednesday, January 16, 2013

TA 2013 Malaysia Outlook: Ride the Volatility

By TA Securities,

We believe 1H13 will be a choppy period and election concerns could drag down the FBM KLCI by 8% to 10% in the period before market rebounds in the 2H13. The impetus for revival will mainly hinge on the end of election overhang and strong domestic demand.


Sustained monetary easing on the back of low inflationary pressure and attempts to reduce budget deficits by cutting subsidies and channeling the savings to productive ventures are positive despite the short-term impact on earnings. Overall, domestic economy will play an integral role in sustaining confidence in domestic equities next year in the absence of any overwhelming micro drivers.



Corporate earnings for 9M12 were less robust and we forecast full year earnings growth for the FBM KLCI to be 9.4% only. Chances of a strong revival in the immediate-term are minimal based on external sentiment and dwindling demand in key export markets. Our earnings growth forecast of 8% and 8.4% for CY13 and CY14 is not compelling vis-a-vis key regional emerging market's 16.1% and 14.7% respectively. It could come under further pressure if the implementation of minimum wages had greater impact in raising the input cost than the intended increase in disposable income and spending. High likelihood of subsidy cuts (electricity tariff and fuel price increases) post 13th General Election would be negative on earnings and will prompt us to trim our CY13 and CY14 forecasts by 1.2% and 4.9% respectively.



How about Foreign Markets?
External factors will continue to dictate the market directions. The structural flaws cannot be undone overnight but expect bouts of positive improvements to kick in the 2H13 as fats are trimmed and jobs created. China could revive its domestic growth without stoking inflationary pressure but it can be destabilizing factor if its row with Japan escalates. The same applies to Iran and the West.

Can KLCI end Strong this year?
We derived our end-2013 target of 1,710 for FBM KLCI after applying 2008-2011 average forward PER of 14.3x on mid-cycle EPF of 120 sen. The underlying key assumption is that BN will return to power with slim majority. This target is a 5% discount to our bottom-up valuation of 1,800.

FBM KLCI performance before and after 2008 Malaysia's election
Strategy...
Sell-on-strength, especially overvalued defensive plays in the Consumer, Healthcare and Telco sectors and turn cash-heavy to accumulate high beta plays in domestic sectors, which are mainly related to Construction, Oil & Gas and Property sectors, in 1H13. Banking sector holds good buys based on their attractive valuation, still robust loan growth and bright chances of benefiting from ongoing domestic expansions.


Source: TA securities report

Tuesday, January 15, 2013

What's Wrong for an Economist to Predict the Upcoming Election?

I am writing this post during midnight after I came across a report saying that Bank Islam chief economist suspended after predicting that opposition will win the upcoming election. As usual, Finance Malaysia would NOT include political elements in its blog post. And, we would like to stress here again, that we are discussing this topic WITHOUT any political elements. Then, what are we talking here?


FREEDOM of VOICE & OPINION
I knew that I could not sleep if I didn't speak up for En. Azrul Anwar. We are not here to defend anyone, neither to offend any parties. But, we should open up our mind, and accept other opinions with open heart. In this matter, the said bank is losing its credibility and reputation by suspending one of its key staff --- just because of his prediction. Why can't he speak freely? Will the bank lose its banking license because of this?

Does he answer the question wrongly? NO... It's a prediction only, there is no right or wrong here.



Everyone knew that political changes is the key risk for Malaysian economy this year. Can an economist avoid this topic? Or, should they answer the same question with the same biased answer? Otherwise, who will listen to their opinions? Then, why a company hires an economist to represent them in the first place?

Funny... That's why Finance Malaysia blog is another channel for investors and readers to get 3rd party opinions and views. Blogging industry will prosper even faster, because the demand is there. Readers DO NOT want to read biased newspaper or news portal anymore. Thanks for your support. Finance Malaysia supports Azrul Anwar.

Sunday, January 13, 2013

What are the 100 Top (Anglo-Saxon) Finance Blogs? A Pseudo-Scientific Study


I know what you're thinking: How on earth would I be able to read, let alone rank, 100 blogs? The answer is simple: I have a METHODOLOGY!... and it's about as scientific as a model used to work out the value of a junk-bond backed CLO. Yes, I've taken something completely subjective and added a spurious quantitative element to it. Given that this is standard practice in the financial industry, there should be no problem.

The Methodology
A category like 'financial blogs' is somewhat loose: I've included blogs that focus on analysis of financial news, blogs that waffle about trading and investment strategies, and more general economics blogs that provide analysis relevant to financial markets. Personal finance sites though, are excluded, so no Mint.com. The methodology is based on 3 voting rounds, during which points are scored. Let me explain...

Voting round 1: The List-Makers
As a starting point, I sought to identify four pre-existing 'best of' lists that appeared to be relatively reputable. There were actually surprisingly few of these, but I settled on the following four: 
Each recommendation from these lists counted as a Round 1 Vote. I got 25 from Time, 6 from MarketWatch, 21 from CNBC (this list actually had 18 main suggestions, but mentions 3 others), and 13 from Downtown Josh Brown (his list has 5 major recommendations, but a series of secondary recommendations too). That gives us 55 initial votes from pundits who were prepared to put their reputation on the line.

Voting round 2: The winners of Round 1
I decided that if a blog received two votes or more from Round 1, that blogger was then eligible to vote too. How would they do that? Simple - I used their blogroll as a proxy: A blogroll is a list of blogs recommended by a blogger, an implicit vote of confidence if ever there was one.

The top blogs emerging from Round 1 were Business Insider (Joe Weisenthal), Calculated Risk (Bill McBride), Dealbreaker (Bess Levin), The Big Picture (Barry Ritholz), Pragmatic Capitalism (Cullen Roche), Felix Salmon, Zero Hedge, Abnormal Returns (Tadas Viskanta), FT Alphaville, Naked Capitalism (Yves Smith), Reformed Broker (Josh Brown), and Dealbook. Not all had blogrolls though, but I managed to find 282 blogroll votes from Naked Capitalism, Calculated Risk, The Big Picture, Zero Hedge and FT Alphaville.

Voting round 3: Up-and-comers from Round 2
I used a similar process for Round 3. This time, if a blog had received three or more votes of approval from Round 2 and and Round 1, their blogrolls were eligible to be drawn into the vote pool too. The Up-and-Comers included Brad DeLong, Paul Krugman, Econbrowser, Mish's Global Economic Analysis, Credit Writedowns, The Epicurean Dealmaker, Infectious Greed, The Aleph Blog, Minyanville, MarketBeat, Angry Bear, China Financial Markets, Jesse's Café Américain, Oil Price, The Economic Populist, Cassandra does Tokyo, Economist's View, Interfluidity, and Financial Armageddon. I rounded up the blogrolls of those that had them, and harvested another 1074 votes.

Weighting the Votes
To compile the final list, I weighted the votes. The votes from Round 1 were worth 4 points - because they were from explicit 'best of' lists that had been actively created. The votes from Round 2 were worth 2.5 points, because they were from more passive blogrolls, and the votes from Round 3 were worth 1.5 points. These points are somewhat arbitrary, but the results remain roughly similar even when I use slightly different point weightings. Besides, it's my list. So, here it is, split into four quartiles (please note that only the first quartile is ranked in exact order - thus, while Naked Capitalism is No.2, a blog in quartile 3 is somewhere between 50-75. I don't feel the need for spurious accuracy).


THE F-100

CLICK FOR LARGER VERSION!

Top24 Q2 Q3 Q4
Calculated Risk Cassandra does Tokyo TheMoneyIllusion Daneric's Elliott Waves
Naked Capitalism Financial Armageddon The Research Puzzle Dr. Housing Bubble
The Big Picture Jesse's Cafe Americain Macro-Man Global Econ Matters
FT Alphaville Oil Price Macro Market Musings Greg Mankiw
Felix Salmon Minyanville PeakProsperity Liberty Str. Economics
Business Insider WSJ MarketBeat Streetwise Professor Macroblog
Dealbreaker Economix The Burning Platform Max Keiser
Abnormal Returns Marginal Revolution Tim Iacono Modeled Behavior
Zero Hedge Real Time Economics The Oil Drum Next New Deal
Econbrowser Rortybomb Megan McArdle Psy-Fi Blog
Paul Krugman Von Mises Institute World Beta re: The Auditors
Economist's View The Economic Populist Alea The Market Ticker
Credit Writedowns The Aleph Blog A Dash of Insight WSJ Deal Journal
Reformed Broker Epicurean Dealmaker Bespoke Investment Distressed Debt Invest
Angry Bear Credit Slips Eschaton Brazilian Bubble
Mish’s GlobalEcon VoxEU iMFdirect Macrobusiness
Interfluidity Falkenblog Marc to Market Money is the way
Brad DeLong Ezra Klein Market Montage Automatic Earth
Dealbook Freakonomics Testosterone Pit DollarCollapse
The Baseline Scenario Beat the Press AllAboutAlpha Environmental Econ
China Financial Markets Bronte Capital Bonddad Blog Pension Pulse
Infectious Greed Roubini GlobalEcon Boom Bust Blog Q-Finance
Pragmatic Capitalism Free Exchange Capital Gains & Games Robert Reich
Of Two Minds Footnoted Capital Spectator Worthwhile Canadian
Jeff Matthews Coyote Blog No.100: Your Choice!
Market Folly



So, who is No. 100?
That's for you to decide. The list needs to be taken with a pinch of salt, because I've derived it from pre-existing opinions from respected, but comparatively mainstream commentators and their blogrolls. Not only have I assumed that their opinion is valid, but I've also assumed that there is no group-think or systematic bias from well-known bloggers reinforcing each other's positions with reciprocal links. Perhaps we should call the list the "Top 100 mainstream anglo-saxon finance bloggers who have already been discovered". It doesn't include all the cool smaller blogs that don't post as regularly, or who have weirder things to say. That said, I'm very pleased that the deranged rantings of Michael Fowke from Money is the Way got on - his blog is so surreal that many people don't get it, but it really captures something of the absurd hubris of financial institutions. I'd really like to see Ian Fraser's blog on there, and Tim Johnson's Magic, Maths & Money: Both of them got votes in Round 3, but not enough to get on the main list. I'll have to start work on another list of more marginal (and perhaps more subversive) bloggers - please send me any suggestions!

By the way, if you want some more good lists of financial blogs, check this huge list here, this one here, and this useful site here.

799E2PRVM3GZ

Friday, January 11, 2013

Bear Stearn’s kollaps i backspegeln (och observationer om marknadseffektivitet)

Jag läste nyligen en förträfflig bok, för den som gillar detaljer i hur investment banker styrs, som heter House of Cards. Boken handlar om Bear Stearn’s kollaps och gÃ¥r detaljerat igenom hur korthuset trillade ihop under tio dagar i mars 2008.
Det roliga är att jag sparat Financial Times (d.v.s. papperstidningen) från de dagarna och kan därför gå tillbaks i tiden och göra en jämförelse mellan vad som skrev i media och vad som skedde bakom kulisserna. Jättekul, det känns nästan som om jag gått och blivit historiker!
En speciellt intressant utveckling är det som författaren av boken, W. D. Cohen, hävdar är ett misstag av JP Morgan i övertagandet/köpet av Bear. JP Morgan var banken som tog över Bear Stearns tillsammans med Fed och de kom initialt överens om att JP skulle betala $2 per Bear aktie. Kom ihÃ¥g, detta var en aktie som bara ett Ã¥r tidigare hade kostat $172! Problemet enligt Cohen är att JP gjorde misstaget att tillÃ¥ta Bear’s aktieägare att rösta ja/nej till detta bud under en hel 12-mÃ¥n period samtidigt som JP garanterade alla Bear’s lÃ¥n. I princip gav JP Bear en option att piggybacka pÃ¥ JP balansräkning under 12 mÃ¥nader och vänta pÃ¥ ett bättre bud! Jamie Dimon var enl boken ursinnig…..
Det intressanta är att inget stÃ¥r att läsa om detta i Financial Times och istället spekulerar man annorstädes om varför aktiekursen efter $2 budet tillkännagivits snabbt steg till $6-8. Hela veckan efter 16 mars gick Bear’s aktiekurs upp och hela tiden rapporteras (felaktigt) om varför sÃ¥ var fallet. Misstaget frÃ¥n JP verkar dock inte ha varit känt och de som kände till det hade verkligen kunnat tjäna storkovan eftersom det var uppenbart för dem att JP skulle höja budet snart. Mycket riktigt, en vecka senare, 24 mars, höjde JP budet till $10 per aktie. Det spekulerades i media att skälet var att slippa stämningar frÃ¥n aktieägarna i Bear. Enligt boken var det dock nödvändigt för JP eftersom de (samt kreditgivarna och resten av det finansiella systemet) hade sÃ¥ mkt att förlora pÃ¥ att dealen ej gick igenom.

Om författarens påståenden är sanna så har vi ett tydligt exempel på att all information inte alltid inkorporeras instantant i aktiepriser!!

Tuesday, January 8, 2013

Understanding Exchange Traded Bond and Sukuk (ETBS)

Today, Malaysia achieve its first milestone in Exchange Traded Sukuk, following the launching of RM300million sukuk by DanaInfra Nasional Bhd. This is the first sukuk for retail investors. When we mention about retail investors, which refer to public, are we ready for this kind of new investment? We should better understand first before jumping onto the ship...


In short, ETBS refers to Exchanged Traded Bond and Sukuk. Generally, bonds/sukuk have always been seen as an asset class to hedge when markets are bearish and a means to develop a steady income over many years. But in the past, these was only accessible to high net worth and institutional investors. Now, with ETBS, all investors can have access to the bond/sukuk market with ease, via the stock market.

What are ETBS ?
ETBS are fixed income securities, also known as bonds or sukuk (syariah compliant bond), that are listed and traded on the stock market. ETBS are issued either by companies or governments (the issuer) to raise funds for their needs. ETBS have varying structures such as fixed rate, floating rate and hybrids.

Why Invest in ETBS ?
Here are some of the reasons to invest in ETBS:

  1. Flexibility and ease of trading on Bursa Malaysia
  2. Transparency, as ETBS are listed on the bourse, investors will have access to real-time prices and volumes, just like shares, with up-to-date information.
  3. Diversification by including ETBS in your portfolio, to complement your investments in other asset classes.
  4. Additional income stream, from the steady income stream through regular coupon payments.


What are the Factors that determine the price of an ETBS ?

  1. Price and Yield
    • It's all about demand and supply in the marketplace. High price, low yield. Low price, high yield. Since the coupon payments for an ETBS are generally fixed to the principal value of the bond, what you pay (price) is crucial to determine the yield.

  2. Interest Rates
    • ETBS is sensitive to interest rates changes. Supposing the average interest rate available to investors goes up, the ETBS' current yield will become a less attractive investment. This would caused a decline in the price of ETBS; until when the yield becomes competitive with prevailing rates. The reverse occurs, if interest rates go down.

  3. Credit Risk
    • Essentially, credit risk is the likelihood that the issuing entity will or will not be able to repay principal amount and its interest element at maturity. As such, corporate ETBS has higher risk than most government ETBS. It was evaluated and rated by rating agencies, such as MARC, RAM, Moody's and S&P. A top rating (AAA) means the ETBS carries the least credit risk (not without risk). Ratings can be upgraded or downgraded, thus, affecting the price.

  4. Maturity
    • Longer maturities have more risk and tend to priced lower (or have higher yields), because of uncertainties in future. Eventually when ETBS start to approach their maturity date, their prices start to get close to the par value.

Please take note that the minimum board lot size for ETBS is 10 units, versus 100 units for shares. You can start trading ETBS simply by opening a CDS account, just like share trading. Happy trading!!!


Source: Bursa Malaysia

Sunday, January 6, 2013

Culture-Jamming with the Lords of Finance: Jamie & Bob

BEAR STEARNS (2008)
DIMON: "A PIECE OF ART CLOSE TO MY HEART"
I have many artists in my family - for example, my mother creates psychedelic textile art, and my uncle  Stidy is a political cartoonist - but I feel over the last few years that I've been giving too little attention to the dark arts of art. So, welcome to my first exhibition.

It all started when I was messing around with one of those demotivational poster generators. I was reflecting on the sad greatness of the now departed Bear Stearns, and Shakespeare came to mind with the speech of Mark Antony, when he says "Friends, Romans, Countrymen, lend me your ears, so that I can sell them to an investment bank that wants to securitise them". One thing led to another, and I created my first masterwork. I called it simply, Bear Stears, but it is now known amongst collectors as 'ear 'ear.

When I first put it out for auction on Ebay, the piece wasn't well understood, it's meaning opaque like a Cayman Islands SPV. But, there was one man whose heart it captured, and he offered me $10 a share for it. He was my first patron, JP Morgan CEO Jamie Dimon.



I do dedications
I was inspired by Jamie's bold leadership of JP Morgan, and also wanted to keep him sweet so that he'd buy more of my art, so, in honour of him, I made a special edition print called The Dirty Work. It was a simple portrait against the backdrop of his respected asset management division, showing his understated elegance. I pinged him an email with a JPG copy, but his personal assistant replied saying "Jamie says you've hurt his feelings and should go screw yourself". I'm still confused by this response, but I think he's a bit sensitive because his company is being sued for Bear Stearns 'Shit Breather' mortgage bonds.

A CONTROVERSIAL PIECE: THE DIRTY WORK (2011): £13 000


I do commissions
You learn to deal with the rejection in the art world though. As it happens, there was a silver lining, because Bob Diamond saw The Dirty Work at a distressed asset auction. He was impressed, and called me up on Skype, saying he was nostalgic for Barclays and that he wanted a piece reflecting on his tenure at the bank that he was thrown out of. I was sensitive to his wishes. I created a work called Libortarian Dreams, featuring dreamy blue imagery from his past. Bob, unlike Jamie, was very happy with it.

LIBORTARIAN DREAMS (2012)


MR DIAMOND: MY HAPPY PATRON!


I do deep social commentary
It's all too easy for an artist to become slaves to their patrons and to lose touch with the everyday person. This is why I do special edition print runs of more down-to-earth creatures, like Morland, the Merrill Lynch Bull. Morland has always felt objectified on Merrill's logo (they even incorrectly refer to him as 'Dollar') and wanted to use his position to draw attention to the plight of less fortunate cattle in the factory farming industry. He helped me design, and posed for, a touching piece called Bully Beef.


BULLY BEEF (£450)

Morland was kind enough to pose for me in another print too, featuring my brother reflecting on a nuclear explosion that I made on PaintShop. Both of these prints go for the meagre sums of £450, payable also in Bitcoin.

TALKING BULL: £450


So, what do you do? Become an artist
Pablo Picasso once said "What do you think an artist is? An imbecile who has only his eyes if he is a painter, or his ears if he is a musician?... On the contrary, he is at the same time a political being, constantly on the alert to the heart-rending, burning, or happy events in the world, molding himself in their likeness." He also said "there ought to be an absolute dictatorship of painters", so go out, ye dictators and be merry, paint Canary Wharf in bright canary yellow, Wall Street in emerald green and Hong Kong in neon lava orange. Send me your images, and I'll put them up.