Archive for the ‘Uncategorized’ Category

Convexity Crowd Crazed

Wednesday, November 30th, 2016

Via TDSecurites: §  Given the 50bp move higher in rates over the last few weeks, we analyze MBS convexity risks. Even though the structure of the mortgage market has changed significantly from the pre-crisis period due to Fed ownership and GSE conservatorship, we think that there are still some holders of ...

FX

Tuesday, November 29th, 2016

Via Marc Chandler at Brown Brothers Harriman: Dollar Comes Back Mostly Firmer, but Focus is Elsewhere The dollar is firmer but confined to yesterday's ranges The focus today is on OPEC, which is struggling to reach an agreement and South Korea, where the President is offering to resign to avoid impeachment ...

Some Corporate Bond Stuff

Tuesday, November 29th, 2016

Via Bloomberg: IG CREDIT: 3rd Highest Monday Volume on Record 2016-11-29 11:12:33.741 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $16.9b vs $1.6b Friday, $16.5b last Monday. It was the 3rd highest Monday session volume since record keeping began in 2005. * 10-DMA $15.6b; 10-Monday moving avg $15b * 144a trading added ...

Credit Pipeline

Tuesday, November 29th, 2016

Via Bloomberg: By Robert Elson (Bloomberg) -- Set to price today: * BPCE SA (BPCEGP) A2/A, to price $benchmark 2-part deal, via managers GS/HSBC/MS/Natix/RBC * 5Y, IPT +115 area * 10Y, IPT +140 area * Rentenbank (RENTEN) Aaa/AAA, to price $benchmark Global 5Y, via Barc/HSBC/RBC/Sco; guidance MS +32 area * In the 2 weeks following Thanksgiving 2015, $65b was ...

Just Don’t Enforce It (and Best Acronym RENT-D)

Monday, November 28th, 2016

Via WSJ: How to Kill the Volcker Rule? Don’t Enforce It Big banks hoping a Trump administration will defang one of Dodd-Frank’s most-controversial pieces News By Ryan Tracy and John Carney Nov. 28, 2016 5:30 a.m. ET   Big banks spent years railing against the so-called Volcker rule, which bars them from making wagers with ...

Cautious View on Bank Stocks

Monday, November 28th, 2016

Via Bloomberg: Whiff of Danger in Bank Stocks Returning $300 Billion in 25 Days Lu Wang luwangnyc November 28, 2016 — 5:00 AM EST Group’s market value on course for record monthly increase Little sign of fear in bank ETF’s options, short interest Optimism is higher than ever on a ...

Italian Referendum and the Euro

Monday, November 28th, 2016

Via Bloomberg: Chiara Albanese chiaraalbanese John Follain JohnFollain November 28, 2016 — 12:00 AM EST Investors reeling from democratic shocks in Britain and the U.S. are worried about Italy’s future in Europe’s monetary union. They’re concerned that a defeat for Prime Minister Matteo Renzi in the Dec. 4 constitutional-reform ...

Credit Pipeline

Monday, November 28th, 2016

Via Bloomberg: IG CREDIT PIPELINE: Dealers Expect Over $20b of Issuance 2016-11-28 10:26:24.814 GMT By Robert Elson (Bloomberg) -- 69% of dealers and clients, in a Bloomberg survey, expect IG issuance to exceed $20b this week; 33% expect more than $25b, 10% over $30b. * $65b priced in the 2 weeks following Thanksgiving last year; in the week ...

Some Corporate Bond Stuff

Monday, November 28th, 2016

Via Bloomberg: IG CREDIT: Lowest Trading Volume Since Christmas Eve 2016-11-28 10:43:15.144 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $1.6b Friday vs $8.4b Wednesday, $15.6b the previous Friday. It was the lowest volume session since $990m on Dec. 24. * 10-DMA $15.8b; 10-Friday moving avg $12b * 144a trading added ...

More FX

Monday, November 28th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead There is growing confidence that the Federal Reserve will hike rates next month, and more next year This week's US data is unlikely to alter views but may strengthen the appreciation of the solid economic performance since struggling ...