Archive for the ‘Uncategorized’ Category

Bond Market Rout?

Wednesday, January 4th, 2017

Via Bloomberg: Harvard Academic Sees Debt Rout Worse Than 1994 ‘Bond Massacre’ 2017-01-04 15:39:28.489 GMT By Anchalee Worrachate (Bloomberg) -- If you thought you had already read the gloomiest possible prognosis for bonds, wait until you read this one. Paul Schmelzing, a PhD candidate at Harvard University and a visiting scholar at the Bank of England, said if ...

FX

Tuesday, January 3rd, 2017

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead We expect the dollar's uptrend to continue, driven by the divergence of monetary policy broadly understood and the political risks emanating from Europe The highlight of the week is the US jobs report Investors await the UK Supreme Court ...

Some Corporate Bond Stuff

Tuesday, January 3rd, 2017

Via Bloomberg: IG CREDIT: Trading Expected to Bulk-Up; Issuance Has Quick Start 2017-01-03 10:53:50.48 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $2.5b Friday vs $4.1b Thursday, $2.2b last Friday. * 10-DMA $7.8b vs $18.6b Dec 9; 10-Friday moving avg $10.3b vs $12.3b Dec. 9 * 144a trading added $169m of ...

Earnings Set to Rebound

Tuesday, January 3rd, 2017

Via WSJ: Earnings, Not Donald Trump, Are Stocks’ Best Friend in 2017 Continued rebound in corporate profits should prop up share prices regardless of Washington policies By AKANE OTANI Jan. 3, 2017 5:30 a.m. ET 0 COMMENTS Here’s one simple thing set to help sustain stocks’ march in 2017: corporate earnings. While Donald Trump’s election supercharged investors’ hopes ...

Animal Spirit on the Rise

Tuesday, January 3rd, 2017

Via WSJ: BUSINESS Businesses Ramp Up Investment Despite Rising Rates After years of hoarding cash and buying back stock, U.S. companies are ready to spend money on equipment, buildings By THEO FRANCIS and VIPAL MONGA Updated Jan. 2, 2017 10:40 p.m. ET U.S. companies are preparing to invest again after years on the sidelines, and rising interest ...

Mighty Greenback and the US Economy

Tuesday, January 3rd, 2017

Via Bloomberg: Dollar Rally Adds to Uncertainty as Fed Weighs 2017 Rate Hikes by Christopher Condon January 3, 2017, 12:00 AM EST Greenback’s rise caused by anticipation of fiscal boost Appreciation will harm economy if Trump can’t deliver The dollar’s appreciation may represent the U.S. economy’s biggest speed bump in 2017, and that could be ...

Credit Pipeline

Tuesday, January 3rd, 2017

Via Robert Elson at Bloomberg: IG CREDIT PIPELINE: 2 Expected to Price, Beginning 2017 Issuance 2017-01-03 10:22:45.197 GMT By Robert Elson (Bloomberg) -- Expected to price today: * Westpac Banking (WSTP) Aa2/AA-, to price 2-part deal, via managers BAML/HSBC * 5Y, IPT +105 area * 5Y FRN, IPT equiv * BNP Paribas (BNP) Baa2/A-, to price $benchmark Non-Pfd Senior 7Y; ...

New Year and New Yuan Basket

Tuesday, January 3rd, 2017

Via Bloomberg: Analysts Can't Seem to Agree on Whether China's New Yuan Basket Will Be More or Less Volatile A-tisket, a-tasket, a new currency basket. by Narae Kim January 3, 2017, 3:18 AM EST It's a new year and a new yuan. Days after announcing a revamp of its trade-weighted foreign-exchange basket, China's decision to downgrade the importance of the ...

Early FX

Tuesday, January 3rd, 2017

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h12032ba4,196c164f,196c1650&p1=136122&p2=b7962b819e3d1b71c528572ef2a812d1> My inner Grinch was fueled  by the cold this morning, nopt to mentin the dark. That Pret-a-manger decided to delay its opening until 7 am, delaying my first coffee of the day, didn't help. But all I've learnt since getting in is that the Grinch, and ...

FOMC Rotation: Non Economists Join the Mix

Thursday, December 29th, 2016

Via WSJ: New Fed Voters Bring Wide Range of Experience to Rate-Setting Panel First-time FOMC voters include a former university president and a onetime gubernatorial candidate By Michael S. Derby and Shayndi Raice Updated Dec. 28, 2016 3:47 p.m. ET   Three of the four officials who gain votes next year on the Federal Reserve’s ...