Archive for February, 2008

High Yields Going Higher Still

Friday, February 8th, 2008

 I just spoke with a portfolio manager who noted that carnage in the High Yield bond market. The HY9 which is an index of 100 non investment grade names,has widened by 49 basis points today. This PM suggests some liquidation transaction did take place and there are more than a ...

Midday Update.

Friday, February 8th, 2008

 The Treasury market is in full throated rally mode as it erases much of the damage which occurred yesterday after the failed bond auction. The yield on the 2 year Treasury note has once again plunged below 2.00 percent and currently yields 1.95 percent. The benchmark 10 year which had ...

Corporate and Treasury Update

Friday, February 8th, 2008

 Corporate bond spreads opening up 3 basis points to 5 basis points wider in financial names this morning. Industrial names are unchanged to maybe a basis point wider. In my conversations this morning I have picked up reports of decent buying of corporates late yesterday as Treasury debt swooned. The new ...

A Little More on the Overnight Trade

Friday, February 8th, 2008

 Here is a little more commentary on overnight trading. The markets were rife with rumors of credit related problems.There were stories about a bid list of telecom CDS and talk of a German bank in need of a bailout/rescue. It was an active night on the customer side with some key activity ...

Opening Comments

Friday, February 8th, 2008

February 8th, 2008 Prices of Treasury coupon securities have rebounded sharply in overnight trading from the very depressed state which they reached in very late trading yesterday. As I recounted at that time,  the post auction trading was a debacle but in retrospect it led to some bargain prices and contributed to ...

Inflation Fear at the Fed Article

Friday, February 8th, 2008

The Wall Street Journal is carrying a story this morning regarding the inflation concerns of some senior Fed officials. The article is mostly a rehash of recent speeches by several regional Fed bank Presidents and chronicles their fears that setting rates too low now is bad policy as they expect ...

Friday Morning News

Friday, February 8th, 2008

A gloomy view from Deutsche Bank. Securitisation soiree. An inconvenient truth? European stocks rebounding.

Some Evening News

Thursday, February 7th, 2008

Weak capex in Japan via Marketwatch. Stimulus package passes. Not economic news but maybe the chimes of freedom are beginning to ring in Cuba are beginning to ring in Cuba.

Tumultuous Trading Tests Traders

Thursday, February 7th, 2008

Prices of Treasury coupon securities plummeted in a tumultuos trading session which was reminiscent of trading in the 1980s. The outstanding 30 year bond traded early in the day with a 111 handle and trades now late in the day with a 107 handle. That's the way stocks trade! As I ...

Corporate Bond Wrap

Thursday, February 7th, 2008

Corporate bond issuers had the temerity to offer a chunk of bonds for investor consumption on the same day that the Treasury offered $9 billion 30 year bonds. Some of the corporate issues ,particularly the Verizon deal ,received a far more enthusiatic reception than the Treasury. Alexander Hamilton  is ,I ...