Archive for March, 2008

Closing Comments March 31 2008

Monday, March 31st, 2008

 Prices of Treasury coupon securities posted modest gains in a quiet quarter end session. Dealers reported that the level of activity was light and any large block trade was capable of moving spreads or markets.The yield on the benchmark 2 year note declined 4 basis ponts to 1.61 percent and ...

Corporate Bonds

Monday, March 31st, 2008

There is not a lot of new information in corporates since last I wrote earlier in the day. The most interesting factoid is the Metropolitan Life hybrid deal. The giant insurance company is offerng $500 million of a 60 year non call 25 year deal with a spread nearly 500 ...

Agency Commentary

Monday, March 31st, 2008

 Agency spreads were a little tighter today joining swap spreads at narrower levels. There were sellers of bullets with maturities of less than a year and discount notes. Another dealer reported customer demand for cushion bonds(callable bonds 200 basis points or so in the money on which the call in ...

Corporate Bonds

Monday, March 31st, 2008

 The corporate bond market, in the words of one trader, is violently unchanged this morning. There is a spate of issuance but it does not seem to have dramatically impacted spreads. On the credit front the woes of cholestorol medicine vytorin have wounded Merck and SGP. SGP spreads are certainly ...

MBS

Monday, March 31st, 2008

Mortgages are trading about even with the Treasury curve this morning but are underperforming swaps. Some hot money types went home short for the weekend and lower yields have forced some buying and they have been joined by the servicers. Otherwise it is pretty quiet.

Scandinavian Model: But Not the Type That You Think!

Monday, March 31st, 2008

An interesting story about a possible Fed response to the financial crisis and credit crunch.

A Treasury Market Update

Monday, March 31st, 2008

 Prices of Treasury coupon securities are well bid this morning as a variety of factors combine to push prices higher. I think that the calendar was an arbitrary constraint and with the calendar page prepared to turn to the cruelest of months many investors who were precluded from playing by ...

March 31 2008 Opening Comments

Monday, March 31st, 2008

 Prices of Treasury coupon securities have slipped marginally in overseas trading of US government securities. The yield on the 2 year note has increased by about 2 basis points to 1.66 percent. Each of the other benchmark Treasury securities has seen its yield rise by just 1 basis point.That leaves ...

Sunday Night Linking

Sunday, March 30th, 2008

The UK will propose more stringent regulation of international financial institutions. A Reuters story which suggests that the problems at the US subsidiary of HSBC are gargantuan. Here is a solid real world indication of economic weakness.

HUD Secretary Jackson to Resign

Sunday, March 30th, 2008

The Wall Street Journal is reporting the HUD Secretary Jackson will tender his resignation tomorrow. The WSJ article notes that this is a blow to the Administration as HUD has been at the forefront of efforts to minimize damage from the credit crunch.