Archive for April, 2014

April 30 2014 Opening

Wednesday, April 30th, 2014

Prices of Treasury coupon securities have registered modest declines in lackluster overseas trading as market participants await the outcome of the Federal Reserve confab and the plethora of data scheduled for release over the remainder of the week. Today is also month end and that sometimes reduces volumes  for the ...

Merrill Lynch Research on Apple Bonds

Tuesday, April 29th, 2014

Merrill Lynch research has an excellent piece on the Apple issuance. By that firms reckoning the 10 year sector is unchanged from the day on which they intimated that they would flood the market and the 30 year sector according to Merrill is 8 basis points tighter. Via Merrill Lynch Research: Apple ...

Golden Apple.

Tuesday, April 29th, 2014

Apple priced its deal at steamy levels. The 3 year priced at + 18 (IPT 20), the 5 year priced at +37.5 (IPT 50), the 7year at +60 (IPT 75) and the 10 year at + 77 (IPT 90). I think the 30 year priced around +98  (IPT 115/120)but scouting ...

Overnight Preview

Tuesday, April 29th, 2014

An overnight data preview via Robert Sinche of Pierpont Securities: AUSTRALIA: Private Sector Credit Growth data for March, with a BBerg consensus at 4.5% YOY, up from 4.3% in February. A 4.5% print would be the strongest since April 2009. S. KOREA: March data for Industrial Production, Leading Indicator and Manufacturing and ...

Apple Launch (Apology for the Format)

Tuesday, April 29th, 2014

$12b  Apple Inc (AAPL) Aa1/AA+    DB/GS $1b      3Y FRN    3ML +7              $1.5b      3Y  +18              $1b      5Y  FRN  3ML +30              $2b      5Y  +37.5    ...

MBS

Tuesday, April 29th, 2014

Thirty year MBS is now back to approximately  a + wider after being a tad tighter earlier today. Similarly 15 year paper which had been 3 tighter on Fed purchases is now unchanged to 1 tick better. Real money and fast money sold the tightening move.

Apple Guidance

Tuesday, April 29th, 2014

This is the guidance on Apple pricing released about one hour ago. Compare to my earlier note here with the initial price guidance. Via Bloomberg: Apple 7 prt guidance 3 yr +20 area +/- 2bps  (FRN Libor Equivalent) 5 yr +40 area +/- 2.5bps (FRN Libor Equivalent) 7 yr +62.5 area +/- 2.5bps 10 yr +80 ...

Miscellany

Tuesday, April 29th, 2014

Swap spreads are mixed this morning with 2s and 5s unchanged and 10s and 30s each 1/2 basis point tighter. Participants noted that announcement of the Apple deal pushed 5 year and 10 year spreads nearly 1/2 basis points tighter. Dealers report algorithmic types receiving in 10s and 30s. In Treasuries ...

MBS

Tuesday, April 29th, 2014

Mortgages are quiet today with 30 year paper unchanged.However 15 year paper is 1+ to 2 better versus Treasuries as the Open Market Desk took down 15 year 3s. Clients are quiet awaiting the FOMC and the labor data.

A Smaller Apple Deal

Tuesday, April 29th, 2014

The multi tranche Apple deal is dominating the marketplace today with other factors quiescent. The conventional wisdom holds that some of the general market weakness is a function of rate locking of that deal and the other belief is that when the deal prices the unwinding of the locks will ...