Archive for the ‘Uncategorized’ Category

Hillary Clinton Email Problem

Monday, March 2nd, 2015

The NYTimes is leading with a piece on Hillary Rodham Clinton who it seems chose to conduct her official business while Secretary of State via her personal email. How would that go over with the Department of Justice if a bond dealer salesman had chosen to do that? I doubt ...

Merrill Lynch on Eclectic Topics

Monday, March 2nd, 2015

Via Merrill Lynch Research: Dudley's remarks highlight why we should expect the coming rate hiking cycle to be much less favorable than the previous one. Clearly if Dudley's views are shared the Fed is going to want to see higher long term interest rates once they start hiking. This is one reason we ...

More on the Rush to ETFs

Monday, March 2nd, 2015

This morning  I posted this article on  the surge of assets flowing to corporate bond ETFs. Here is an WSJ piece on the same story: Via the WSJ: By KATY BURNE March 1, 2015 6:02 p.m. ET 17 COMMENTS Institutions are piling into exchange-traded bond funds at the fastest pace on record, driven by forces ...

Personal Income and Spending

Monday, March 2nd, 2015

Via Millan Mulraine at TDSecurities Personal income rose at a relatively decent 0.3% m/m pace in January, though it fell short of the market's consensus for a 0.4% m/m gain. This marks the 12 consecutive monthly gain in this indicator, and the rise was driven by the strong 0.6% m/m gain ...

ETFs as a Source of Liquidity

Monday, March 2nd, 2015

I just found this in a site called ETF Trends. Money is pouring into corporate bond ETFs and some of the buyers have turned to the funds because they believe that there is increased liquidity in that instrument. That is an extremely facile and simplistic view as the fund which manages ...

What to Watch Today

Monday, March 2nd, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: Personal Income, Jan., est. 0.4% (prior 0.3%) * Personal Spending, Jan., est. -0.1% (prior -0.3%) * PCE Deflator m/m, Jan., est. -0.5% (prior -0.2%) * PCE Deflator y/y, Jan., est. 0.1% (prior 0.7%) * PCE Core m/m, Jan., est. 0.1% (prior 0%) * PCE Core ...

FX

Monday, March 2nd, 2015

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead - This week, there will be four major central bank meetings (BOE, ECB, RBA and BOC) and the US employment report - The PBOC explained the rate cut on Sunday in terms of a decline in inflation, which results in an ...

Secondary Corporate Bond Trading on Friday

Monday, March 2nd, 2015

Via Bloomberg: IG CREDIT: PETBRA Issues Led Trading; ACT May Be Today 2015-03-02 10:40:33.106 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $16.4b Friday vs $17.8b Thursday, $13.4b the previous Friday. 10-DMA $15.9b. * 144a trading added $1.8b of IG volume Friday vs $2b Thursday, $2.4b last Friday * Most active issues ...

Overnight Flow

Monday, March 2nd, 2015

The Treasury market is about a basis point cheaper across the curve when compared to Friday closing levels. Within that context the moves along the curve are miniscule and where the curve has moved it is in tenths of a basis point. Dealers report Japanese pension fund buyers of 2s 5s ...

Wage Pressures and the Fed

Sunday, March 1st, 2015

Via the WSJ: U.S. bond investors are behaving as if they have all the time in the world. They don’t. The Fed is gearing up for its first rate increase in eight years, a potential killjoy for fixed-income markets. But historically low yields in the U.S. Treasury market suggest investors are betting ...