Archive for the ‘Uncategorized’ Category

Eclectic stuff from Merrill Lynch Research

Tuesday, October 21st, 2014

Via Merrill Lynch:   Out the curve, into US credit. Credit spreads in Europe rallied today on speculation in a Reuters article that the ECB could buy corporate bonds in the secondary market. While such development appears underwhelming as means to expand the ECBs balance sheet and create inflation, not surprisingly iTraxx ...

Retention Rule to Make Credit Expensive

Tuesday, October 21st, 2014

Via Bloomberg: LSTA Says CLO Retention Rules to Make Credit ‘Expensive, Scarce’ 2014-10-21 15:25:18.573 GMT By Shannon D. Harrington Oct. 21 (Bloomberg) -- Final version of proposed risk retention rules requiring managers or banks hold 5% of deals will “negatively impact’ U.S. credit markets, LSTA Executive Director Bram Smith says in e-mailed statement. * ‘‘The LSTA is very ...

New Issues Today

Tuesday, October 21st, 2014

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2014-10-21 13:49:01.628 GMT By Greg Chang Oct. 21 (Bloomberg) -- The following is a list of new issues expected to price today. * KFW $3b Aaa/AAA * 3Y Global * Launched MS -6 vs spread set MS -6 vs guidance MS -6 vs IPT MS ...

Swap Spreads

Tuesday, October 21st, 2014

Two year spreads and three year spreads are a basis point tighter and the rest of the list is mostly unchanged. In vol land one trader reports that the carry game is back in vogue with hedge funds selling vol. He notes that they are now believers in a range trade ...

Corporate Bonds

Tuesday, October 21st, 2014

Corporate bond spreads are opening tighter this morning. The IG 23 stands at 67 3/4 to 68 1/4 which is down 1 1/4 from the close. Long dated fianancial paper is 2 basis points to 5 basis points tighter. The 5 year JPM which priced last week at + 100 ...

JPM Duration Survey

Tuesday, October 21st, 2014

All  Clients             Long       Neutral       Short October 20             13              65              22 October 14             20              54              26 October 6               16               51               33 Active Client Oct 20                      8               75              17 Oct 14                       17              58              25 Oct 6                        18               45              36   In the all clients survey, the percent of longs decreased by 7, the percent of neutrals increased by 11, and the ...

ECB to Buy Corporate Bonds?

Tuesday, October 21st, 2014

Reuters is carrying a story which cites sources who report that the ECB might begin to buy corporate bonds. That story has bolstered the appetite for risk in Europe and US equities.

Outlook for Bunds

Tuesday, October 21st, 2014

Via Citibank: EUROZONE VIEW: Citi says it expects any likely ECB QE to pull Bund yields "a bit lower from current levels" and has adjusted its Q4 target to 0.65% from 0.75%. Citi adds "more interesting is the Bund trajectory in the aftermath of such QE" and notes "inflation premia may ...

FX

Tuesday, October 21st, 2014

Via Marc Chandler of Brown Brothers Harriman - The euro is lower after newswire reports that the ECB is considering buying corporate debt on the secondary market - IBM stock plunged Monday after it reported poor earnings, and the company seemed to partially blame the strong dollar - There was little new information ...

October 21 2014 Opening

Tuesday, October 21st, 2014

Prices of Treasury coupon securities have registered very small changes when compared to levels which prevailed at the New York close yesterday. The yield on the benchmark 5 year note edged lower to 1.407 from 1.408. The yield on the benchmark 10 year note decreased to 2.189 from 2.192. The ...