Archive for the ‘Uncategorized’ Category

Hilsenrath on Saturday Morning

Saturday, November 22nd, 2014

Via Jon Hilsenrath at the WSJ: Economy Central Banks Move to Boost Global Growth Steps by China, ECB Lift Stocks, but Risk Lurks ENLARGE The People’s Bank of China headquarters in Beijing. Bloomberg News By Jon Hilsenrath in Washington, Brian Blackstone in Frankfurt and Lingling Wei in Beijing Nov. 21, 2014 7:45 p.m. ET Two ...

Swap Spreads

Friday, November 21st, 2014

Swap spreads are interesting today as there is some idiosyncratic movement. Two year spreads have tightened 3/4 basis point and 3 year spreads are tighter by 1 1/2 basis points. Those sectors have traded off of movements in the Eurodollar pit and those movements have pushed spreads tighter. In the ...

Corporate Pricings Today

Friday, November 21st, 2014

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2014-11-21 15:25:57.806 GMT By Greg Chang Nov. 21 (Bloomberg) -- The following is a list of new issues expected to price today: * Caterpillar Financial Services Corp. $750m A2/A * $500m 5Y & $250m 10Y (will not grow) * IPT 5Y +75, 10Y +105 ...

TIPS

Friday, November 21st, 2014

TIPS are " en fuego" today as central banks continue to debase their currencies. The dovish Draghi speech and the rate cuts in China have awakened sleeping commodities and slumbering TIPS buyers. The auction yesterday went quite well with strong indirects and a diminished award to dealers. There has been follow ...

Excellent Analysis

Friday, November 21st, 2014

Via Richard Gilhooly at TDSecurities: The rate cut from China and another revamped speech from Draghi, with increased urgency to get inflation higher rapidly, have Break-evens significantly higher today, supported by a jump in commodity prices. The latter has bolstered commodity currencies, in addition to another strong core CPI print in ...

Corporates

Friday, November 21st, 2014

The risk on rally is coursing its way through the corporate bond market,too. The IG 23 is 1 3/4 tighter at 64  64 1/2. Long dated financial paper is 2 basis points to 4 basis points tighter. Here is a  run for your edification: C  24      129/126      ...

Guest Post

Friday, November 21st, 2014

My friend and former colleague Steve Liddy whose musings I have chosen to intermittently reproduce here notes minutes ago that the 5 year forward inflation rate which the FOMC follows is at a cycle low. I hope the Bloomberg chart is readable and as always that is the fault of ...

MBS

Friday, November 21st, 2014

Mortgages are opening pretty much in line with Treasuries. One dealer reports solid buying overnight on the back of real money buying and Federal Reserve buying yesterday. The Draghi speech and the rate cut by China have fostered a risk on mentality today and that should benefit MBS in the days ...

Dealer Positions

Friday, November 21st, 2014

Via the good folks at Bloomberg: IG CREDIT: IG Dealer Positions in Short Issues at Series High 2014-11-21 11:24:07.747 GMT By Robert Elson Nov. 21 (Bloomberg) -- Dealer positions in corporate bonds rose $800m to $33b as of Nov 12. $45.9b, seen March 5, was the high for the series Fed began April 2013; $23b low ...

Secondary market Corporate Bond Trading

Friday, November 21st, 2014

Via Bloomberg: IG CREDIT: Highest Volume Thursday of 2014; MDT May Be Next Week 2014-11-21 10:46:15.610 GMT By Robert Elson Nov. 21 (Bloomberg) -- The final Trace count for secondary trading was unchanged at $18.4b, the highest Thursday session of the year; the previous Thursday session was $15.5b. * 10-DMA $15.6b, ties the January high for 2014; ...