Archive for July, 2016

June Durable Goods

Wednesday, July 27th, 2016

Via Stephen Stanley at Amherst Pierpont Securities: The June durable goods report was generally weaker than expected.  The headline figure sank by 4.0%, more than double the drop projected by the consensus.  The bulk of the decline in June reflected a steep plunge in aircraft bookings (Boeing reported a sharp fall ...

Driverless Cars and Insurance Company Revenue

Tuesday, July 26th, 2016

Via WSJ: By LESLIE SCISM July 26, 2016 10:22 a.m. ET 0 COMMENTS The insurance industry has a $160 billion blind spot: the driverless car. Car insurers last year hauled in $200 billion of premiums, about a third of all premiums collected by the property-casualty industry. But as much as 80% of the intake could ...

Duration Lesson

Tuesday, July 26th, 2016

Via WSJ: The German Yield Curve is Getting Kinky Blame the ECB's era of low rates, which makes 12 years is more expensive than 10 By JAMES MACKINTOSH Jul 26, 2016 8:45 am ET 0 COMMENTS Germany’s yield curve is getting kinky. The European Central Bank’s extraordinarily easy monetary policy has led to an unusual kink in ...

Low Returns Bedevil Pension Funds

Tuesday, July 26th, 2016

Via WSJ: By TIMOTHY W. MARTIN July 25, 2016 7:16 p.m. ET Long-term returns for U.S. public pensions are expected to drop to the lowest levels ever recorded, portending deeper pain for states and cities as a $1 trillion funding gap widens. Twenty-year annualized returns for public pensions in the U.S. are poised to ...

Five Year Note Auction

Tuesday, July 26th, 2016

Via Ian Lyngen (formerly of CRT Capital): We are apprehensive about this afternoon’s $34 bn 5-year auction and see the risks tilted toward a modest tail.  Following yesterday’s poor 2-year reception and with the WI currently suggesting the lowest yielding new 5-year since May 2013, we expect a lackluster reception unless ...

FX

Tuesday, July 26th, 2016

Via Marc Chandler at Brown Brothers Harriman: Yen Soars Amid Stimulus Confusion and Doubts The strength of the Japanese yen is the main development in the foreign exchange market today Sterling has managed to recover from the initial slide driven by dovish signals from MPC member Weale The North American ...

Yen Surge

Tuesday, July 26th, 2016

Via Japan Today: Yen gains as Japanese stimulus expectations dialled back  Jul. 26, 2016 - 04:51PM JST ( 1 ) LONDON — The yen rose more than 1 percent against the dollar and the euro on Tuesday, as traders dialled back expectations of how much new stimulus Japanese authorities will inject into an ailing ...

English Ease

Tuesday, July 26th, 2016

Via Bloomberg: Weale Says BOE Stimulus More Likely as Slowdown Signs Mount Fergal O'Brien fergalob July 26, 2016 — 2:46 AM EDT Bank of England policy maker Martin Weale said Brexit has rattled the economy more than he anticipated and indicated he now favors immediate stimulus. After saying last week he needed to see more evidence ...

Some Early Corporate Bond Stuff

Tuesday, July 26th, 2016

Via Bloomberg: IG CREDIT: WFC 5Y, MS 10Y Led Secondary Trading Session 2016-07-26 09:36:31.570 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $14.7b vs $11.5b Friday, $14.8b last Monday. 10-DMA $16.3b; 10-Monday moving avg $13.2b. * 144a trading added $1.7b of IG volume vs $1.4b Friday, $1.9b last Monday * Most active ...

Credit Pipeline

Tuesday, July 26th, 2016

Via Bloomberg: IG CREDIT PIPELINE: NIB to Price as List Grows Longer 2016-07-26 09:29:47.939 GMT By Robert Elson (Bloomberg) -- Expected to price today: * Nordic Investment Bank (NIB) Aaa/AAA, to price $1b Global 5Y at MS +17, via managers BAML/C/HSBC/RBC LATEST UPDATES * Adani Transmission (ADTIN) Baa3/BBB-, mandates Barc/DBS/NBD/MUFG/Nom/SG/SCB for debut $bench 144a/Reg-S 10Y * Visa (V) A1/A+; CFO ...