Archive for February, 2008
Wednesday, February 6th, 2008
It was a mostly uneventful day in agencies. Spreads are tighter by 1 basis point to 3 basis points with the 2 year sector the best performer. Paper with maturities of less than a year improved as Libor set down today and allowed some of the backlog there to clear.
The agencies ...
Posted in Uncategorized | Comments Off on Agency Market
Wednesday, February 6th, 2008
TheTreasury market is experiencing a 5 basis point back up in yields across the curve this morning. The craven fear which motivated trading yesterday has receded into the background as equities improve and credit markets experience a moment of stability.
The major focus for the market over the next 90 minutes is ...
Posted in Uncategorized | Comments Off on Treasury Market and Other Musings
Wednesday, February 6th, 2008
An interesting story fromReuters about the potential pitfalls of lending to lame credits
Posted in Uncategorized | Comments Off on Neither a borrwower nor a lender be
Wednesday, February 6th, 2008
Agency paper has significantly underperformed the swaps market over the last several weeks. Agency benchmark paper in the 10 year sector traded Libor +1 yesterday whereas it had traded as rich as Libor -20 three months ago.
What factors drives the underperformance of the benchmarks? One friend who makes it his ...
Posted in Uncategorized | 2 Comments »
Wednesday, February 6th, 2008
Leveraged Loan market is stable this morning with the LCDX at 92.6 versus the 92.2 of late last evening. The flow names are still in the high 80s with no real improvement.
Posted in Uncategorized | Comments Off on Leveraged Loan Redux
Wednesday, February 6th, 2008
Some mixed flows overnight in Treasury market.
Asian bank seller of 2 years
hedge fund buyers of 2 year and 5 year sectors.
Central Bank buyers 10 years
End user buyer of 10years.
Posted in Uncategorized | Comments Off on Overnight Flows in Treasury Market
Wednesday, February 6th, 2008
Prices of Treasury coupon securities are posting marginal gains in overseas trading. The benchmark 2 year note has barely breached the 1.90 level and sits at 1.899 percent. I believe that in this cycle it has traded as rich as 1.84 percent when equity markets were melting on Martin Luther ...
Posted in Uncategorized | Comments Off on Opening Comments February 06 2008
Wednesday, February 6th, 2008
An FT story on the risk to banks from a downgrade of the monoline insurers.
The FT on Super Tuesday result.
The New York Times reports on Asian equity market trading.
European equities via Reuters.
Posted in Uncategorized | Comments Off on In the News February 06, 2008
Tuesday, February 5th, 2008
The CMBX Index suffered from assault and battery today with a sharp across the board sell off. The weakness resulted from the general climate of risk aversion as well as from the weakness in the equity markets. The AAA and AA tranches took the worst hit. Here is a link ...
Posted in Uncategorized | Comments Off on CMBX Battered
Tuesday, February 5th, 2008
Agency spreads performed well today but mostly because the market has spent the last several days discounting supply. FNMA priced $3 billion 2 year notes at T+68.5 basis points and the same amount of 5 year notes at T+ 72 basis points. As the market closed the 2 year tranche ...
Posted in Uncategorized | Comments Off on Agency Market