Archive for February, 2009

Swimming Naked in Omaha

Saturday, February 28th, 2009

Hard times in Omaha for the avuncular billionaire as even he gets caught up in the powerful grip of the financial crisis and bear market. And Mr Buffet describes the economy this year as a shambles and does not paint an especially appealing portrait of the future. Also a link to a ...

Bond Market Close Feb 27 2009

Friday, February 27th, 2009

Prices of Treasury coupon securities posted truly bifurcated results today as the yield curve steepened dramatically. The yield on the 2 year note slid 6 basis points to 1.03 percent. The yield on the 3 year note dropped 7 basis points to 1.42 percent. The yield on the 5 year ...

Bond Market Update: Treasury Market

Friday, February 27th, 2009

The Treasury yield curve is undergoing some appreciable steepening today. The 2year/10 year and the 2year/30 has widened by about 7 basis points.   There are several reasons for the price action. I have heard of some (small) asset allocation trades out of bonds and into equities.   There has been rate lock ...

Swaps and Agencies

Friday, February 27th, 2009

Swap spreads are manifesting very small changes today. Two year spreads are tighter by a basis point and 5 year spreads are flat. Ten year spreads are tighter by one and 30 year spreads are flat.   Agency spreads are wider by 2 basis points in the 2 year sector and 3 ...


Friday, February 27th, 2009

One salesman tell me that Citi preferred which traded at 20 yesterday8 .40 prederreds) is trading around 37 today. it is a function of the price of the common stock on the conversion which gives the preferred the boost. Another note from a research analyst at a small shop suggests buying ...


Friday, February 27th, 2009

Citi CDS tighter by 25 bps and BOA tighter by 10.  Wells and JPM tighter by 2 to 5

Treasury Announcement on Citi

Friday, February 27th, 2009

  Treasury announces participation in Citigroup’s exchange offering   Citigroup is planning to strengthen its capital structure through conversion of a significant portion of its preferred securities to common equity in a series of exchange offers. Citigroup requested that the Treasury participate in this exchange offer by converting a portion of its preferred ...

Bond Market Update: Feb 27 2009 Morning

Friday, February 27th, 2009

Prices of Treasury coupon securities are posting very modest gains on overnight trading. Is it the bounce of the famous moribund feline striking the pavement after free falling from on high or is it the beginning of a relief trade following the record issuance by the Treasury? Today is the ...

Some Overnight News

Friday, February 27th, 2009

Credit growth in South Africa rose at its slowest pace in 4 years in January. The New York Times reports that a deal has been struck between Citibank and the US government in which the taxpayer preferred stock investment will become common equity and depending on how many other (suckers) investors ...

Bond Market Close and a Reminiscence

Thursday, February 26th, 2009

Prices of Treasury coupon securities slumped and sagged again today as the penurious debt managers at the Treasury replenished their barren coffers. Today was the final leg of a three part issuance cycle which raised the amazing sum of $94 billion.   This auction went well. There was a small tail ...