Corporate Bonds
October 7th, 2008 2:36 pm | by John Jansen |The corporate bond market is mired in a melancholy malaise. Sentiment is glum and no amount of good news can shift sentiment. The Federal Reserve announcement this morning of the CP rescue package should have sparked some buying. One veteran corporate bond salesman noted that he saw not even a nibble.The Bernanke speech today was essentially a notice that the FOMC would lower rates at the next regularly scheduled meeting. That should have brought some cheer to investors but if it did, they chose to do something other than opening their wallet to procure corporates.
The IG 11 which traded as tightly as 161 ½ after the Federal Reserve CP announcement is back to 170.
The salesman with whom I spoke offered the saga of the GE 10 year note. It began the day 425/405 and moved to 395/375. The issue has surrendered those early gains and is now 415/395.
6 Responses to “Corporate Bonds”
By fatbrick on Oct 7, 2008 | Reply
Sorry for off topic. I heard someone on other blog mention the CDS default auctions for Fannie & Freddie yesterday. They said that went well. Is that so? Any implication here?
By John Jansen on Oct 7, 2008 | Reply
i will have to check on that. i read of it this morning but i will confess i had personal stuff to do so that fell off the screen
By Adam on Oct 7, 2008 | Reply
that was me mentioning it
I would like to know, if this could be the first sign of less depressing news. I guess it the LEH CDS’s bids on thur/fri will give us a better indication
By Stephen on Oct 7, 2008 | Reply
Is that a typo or have the spreads really down out to 415/295? Sorry, dumb question- it must be a typo
By John Jansen on Oct 7, 2008 | Reply
415/395……too many typos lately. Sorry.
By SS on Oct 7, 2008 | Reply
The FNM/FRE auctions went off between .91-.98 depending on what piece of paper we are talking about. You can see the details on a post at http://www.aleablog.com