Archive for September, 2016

Consumer Spending Analysis

Friday, September 30th, 2016

Via TDSecurities: TD Securities Dataflash TD: Spending momentum likely to ease in Q3, but core inflation perking up ·         Personal income suggests a smaller consumer contribution to Q3 GDP growth than during Q2, with real personal spending slipping 0.1% m/m. ·         Inflation did show signs of perking up, with core PCE accelerating to ...

Dollar Demand in Europe

Friday, September 30th, 2016

Via Bloomberg: European Banks Are Asking the ECB for a Lot More Dollar Funding Rise in dollar demand may point to increasing tensions for region's lenders Lorcan Roche Kelly lorcanRK September 30, 2016 — 5:21 AM EDT The European Central Bank has been been holding U.S. dollar-providing operations since the weeks after the collapse of Lehman ...

Lawless Chutzpah

Friday, September 30th, 2016

The Washington Post reports that the Obama Administration is planning to use an obscure law to bail out insurance companies and defy the will of the Congress. Via the Washington Post: Obama administration may use obscure fund to pay billions to ACA insurers By Amy Goldstein September 29 at 12:25 PM The Obama administration ...

More FX

Friday, September 30th, 2016

Via Marc Chandler at Brown Brothers Harriman: Dollar Finishing Week on Firm Note True to its recent habit, the US dollar is finishing the week on a firm note Japan released a mixed bag of data; Eurozone data was largely in line with expectations Better than expected UK data failed to ...

Early FX

Friday, September 30th, 2016

Via Kit Juckes at SocGen: A mixed bag of data overnight (Japan deflation poor PMI in Korea, marginally better one in China, solid UK consumer confidence) but gloom is returning to markets. Our rates strategists have thrown in the towel on short duration trades, and that's leaving FX is a mostly ...

Credit Pipeline

Friday, September 30th, 2016

Via Bloomberg: IG CREDIT PIPELINE: $25b Priced So Far, More Today Is Possible 2016-09-30 09:28:56.36 GMT By Robert Elson (Bloomberg) -- There has been issuance in a Friday session at least 15x YTD. A self-led Financial may be possible. LATEST UPDATES * Comision Federal De Electricidad (CFELEC) Baa1/BBB+, mandates BBVA/BAML/C for investor meetings from Oct. 4 * Global Bank ...

Some Corporate Bond Stuff

Friday, September 30th, 2016

Via Bloomberg: IG CREDIT: DOW, KMI Led Trading on 100% Client Flows 2016-09-30 09:51:24.127 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $15.8b vs $18.6b Wednesday, $18.5b last Thursday. 10- DMA $15.9b; 10-Thursday moving avg $15.3b. * 144a trading added $3.2b of IG volume vs $2.6b on Wednesday, $2.7b last Thursday; ...

Ghost of Lehman Brothers

Thursday, September 29th, 2016

Via WSJ: The Ghost of Lehman Brothers Haunts Deutsche Bank But parallels to failed investment bank are misleading By JAMES MACKINTOSH Sept. 29, 2016 8:04 p.m. ET 0 COMMENTS Eight years ago this month, Lehman Brothers failed in large part due to panicked hedge funds pulling their money. With some big hedge funds worried enough to ...

Yellen on Asset Purcchases

Thursday, September 29th, 2016

Via Bloomberg: Yellen: May Be Benefits, Costs to Fed Buying Stocks/Corp Bonds 2016-09-29 20:27:08.873 GMT By Vivien Lou Chen (Bloomberg) -- Fed Chair Janet Yellen says there could be benefits to Fed buying equities or corporate bonds, yet would also likely be costs that have to be considered. * Idea of expanding into areas like equities might ...

Impaired Liquidity

Monday, September 26th, 2016

Via Bloomberg: Carney's Corporate-Bond Purchases May Worsen Liquidity Squeeze Joe Mayes Joe_Mayes September 26, 2016 — 6:05 AM EDT Central bank aims to acquire 10 billion pounds of company debt Buying may tighten shortage of notes in small sterling market   The start of the Bank of England’s corporate-bond buying program on Tuesday may exacerbate already tight liquidity ...