Some Links for March 18 2008
Wednesday, March 19th, 2008Capital relief. Manic depressive markets. There just might be some way out of here said the joker to the thief. More on JPM and BSC.
Archive for March, 2008
Capital relief. Manic depressive markets. There just might be some way out of here said the joker to the thief. More on JPM and BSC.
Closing Commentary March 18 2008
Tuesday, March 18th, 2008Prices of Treasury coupon securities are taking a sharp tumble today as the 75 basis point rate cut by the FOMC disappointed the hopes of some market participants who longed for 100 basis points. The statement also took a bit of a harsher stance regarding inflation and two members dissented ...
Giant Sucking Sound
Tuesday, March 18th, 2008The giant sucking sound that you hear is the sound of air coming out of yield curve steepening trades. On the day the 2year /10 year spread has narrowed by 9 basis points and the 2 year/ 30 year spread is tighter by 17 basis points. The less than hoped for ...
FOMC
Tuesday, March 18th, 2008The FOMC decided to lower rates by 75 basis points to counteract the effects of the housing contraction which they note has created financial market turbulence,slowed consumer spending and tempered job market gains. In the same paragraph they specifically note that growth will remain slow for a “few” more quarters. The ...
Agencies: Agony Now Ecstasy
Tuesday, March 18th, 2008There has been a massive movement in spreads on US agencies. Spreads are significantly tighter and the magnitude of the move is unprecedented. The 2year agency has outperformed Treasuries by 15 1/2 basis points and has beaten swaps by 8 basis points. The 5 year has outperformed Treasuries by 26 ...
Corporate Bonds
Tuesday, March 18th, 2008Corporate bond spreads are tighter by 5 basis points to 10 basis points in light trading. Some financial names such as Lehman (50 better) and Citi(25 better) are outperforming the peer group. The IG 9 traded 164 166 this morning and that is fully 30 tighter from the wides of Friday. PNC ...
Like Lazarus from the Grave?
Tuesday, March 18th, 2008Bloomberg just scrolled a headline across that Bear Stearns stock (BSC) is up 47 percent to $6.97. Might someone have an insight on that?
TIPS
Tuesday, March 18th, 2008TIPS have become a rather volatile asset class rather than the sleepy backwater that I fondly recall. TIPS breakevens (in 10years) had collapsed to 228 basis points as commodity prices collapsed yesterday. With some recovery in commodities the spread was out a couple early but has moved quite a bit ...
Spread Product Update
Tuesday, March 18th, 2008There is an orgy of spread product buying this morning and it is driving all spread product tighter. The main reason for this is a sense that the Federal Reserve/JPMorgan action in dealing with Bear Stearns is a template for any future market disturbances. The Fed will follow a blueprint which ...
Chinese Central Bank Takes Away the Punch Bowl
Tuesday, March 18th, 2008China looks to check inflation.