Archive for June, 2008
Tuesday, June 3rd, 2008
I posted late yesterday regarding the CDS of the downgraded investment banks. In another piece from a different source, this dealer reports that 250 was the wide spread for the day in the Lehman name. That level did attract some short covering demand for the name. This dealer reported that ...
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Tuesday, June 3rd, 2008
Prices of Treasury coupon securities have posted modest gains in overnight trading as the turmoil which swept the markets yesterday persists. The market movements overnight are modest but the press is replete with stories which elevate fear to the forefront and impart an uncertain tone to the markets as the ...
Posted in Uncategorized | Comments Off on Some Opening Comments June 03 2008
Tuesday, June 3rd, 2008
The Wall Street Journal in a lengthy piece discusses the trials,tribulations and travails of Lehman Brothers. The Journal reports that the firm suffers from the very painful experience of having longs and shorts simultaneously underwater. That can be a painful and disorienting experience.
The Wall Street Journal story reports that current ...
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Monday, June 2nd, 2008
Prices of Treasury coupon securities surged today as credit woes resurfaced with a vengeance and the stock market cratered. (That is one of my favorite verbs and I do not think I have had a chance to use it here since the heady days in March when the world was ...
Posted in Uncategorized | Comments Off on Treasury Recap
Monday, June 2nd, 2008
It is 350PM here in New York and about half an hour ago someone updated me with quotes on the the 5 year CDS of the aforementioned counterparties. In case the market has moved I wanted to put the quotes in some context.
Lehman CDS was about 20 wider on the day ...
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Monday, June 2nd, 2008
Agency spreads were wider by 2 basis points to 2 ½ basis points today. Some of the widening was a response to widening elsewhere and some was a response to supply. FNMA announced $4billion 2 year notes and $4billion 5 year notes which will price later in the week.
Posted in Uncategorized | Comments Off on Agency Market
Monday, June 2nd, 2008
Mortgages are about 3 ½ basis points wider to the treasury curve and about 2 ½ basis points wider to swaps. Late in the day there was servicer buying and end user buying of low coupons. Foreign accounts spent the day (mostly) on the sidelines.The spread widening which occured was ...
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Monday, June 2nd, 2008
Corporate bond spreads as measured by the IG 10 are wider by 5 basis points to 6 basis points today. They opened about 3 ½ basis points wider and have slowly leaked as equities stumbled. Cash market spreads are about 2 basis points to 3 basis points wider in quiet ...
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Monday, June 2nd, 2008
One dealer notes that agency debt has begun to under perform Treasury benchmarks and swaps. The agencies have been given permission and leeway to bulk up their balance sheets and it looks as though Freddie Mac is in the process of doing just that.Total debt outstanding for Freddie Mac was ...
Posted in Uncategorized | Comments Off on Agency Musings
Monday, June 2nd, 2008
I just read a brief research piece from a dealer on the prospects for corporate bond spreads.I do not know if the author intended to do so but in the short piece he made the case for wider spreads as well as tighter spreads.
The case for wider spreads hinges on ...
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