Archive for April, 2008

Commodity Corner

Wednesday, April 2nd, 2008

 Some thoughts that I am picking up on commodities: The current trade is liquidation en masse.The liquidation process began when the Federal Reserve slashed rates by a paltry 75 basis points at its last meeting rather than the 100 basis points that many participants had hoped for or expected. As one ...

Libor Levels

Wednesday, April 2nd, 2008

 There has been a slight incremental upward creep to Libor level the last several days. One money market trader with whom I spoke offered several thoughts on the situation. He noted that there is a dislocation in the swap markets such that a foreign bank can borrow at a dollar ...

April 2 2008 Recap

Wednesday, April 2nd, 2008

 Prices of Treasury coupon securities are closing the day with mixed results as the front end of the yield curve sags.The yield on the 2 year note has jumped by 11 basis points to 1.90 percent. The yield on the 5 year note has increased by 8 basis points to ...

A Little Corporate and a Little MBS

Wednesday, April 2nd, 2008

 Corporate bond spreads remain very firm in spite of the signifcant rally of yesterday. The IG 9 is in the mid 120s and that places it about 70 ish off the wides. Generic corporate spreads were about 10 basis points tighter yesterday and are a couple tighter today. The market ...

Morning Update

Wednesday, April 2nd, 2008

 Prices of Treasury coupon securities are mostly lower and the yield curve is significantly flatter as the process of deleveraging flushes positions. The shift in the yield curve is rather dramatic as curve steepening positions are unwound. The yield on the 2 year note has jumped 12 basis points this ...

Some Links for April 02 2008

Wednesday, April 2nd, 2008

IMF slashes world growth estimates. The FT chimes in on the surge in equiy prices yesterday and suggests that the gains might have been short covering. Lehman petitions the SEC claiming "abusive short selling" by hedge funds. I invite correction if I am wrong but has there ever been an accusation of ...

Some Opening Comments April 2 2008

Wednesday, April 2nd, 2008

 Prices of Treasury coupon securities have registered slim gains in overnight trading as they retain most of the losses which occurred yesterday when markets reversed course and proclaimed that risk of every variety was a beautiful thing. The yield on the benchmark 2 year note has slipped 3 basis points ...

Administrative Note

Tuesday, April 1st, 2008

I am off to the dentist at which time he will harvest one of my molars which will leave its accustomed home after nearly 58 years there. I may or may not return to blogging later today.

MBS

Tuesday, April 1st, 2008

 I am hearing that Asian buying emerged at higher yield levels and the MBS spreads have recouped ground lost earlier in the wave of selling by orignators and servicers.

Some Early Stateside Flows

Tuesday, April 1st, 2008

 In very early New York trading I have heard of some Asian buying of 4 year sector supra paper . In mortgage land the back up in yields has elicited selling from servicers and originators.