Archive for July, 2008
Thursday, July 31st, 2008
The FT reports that Russia plans to create a state controlled grain trading company. Russia is the fifth largest exporter of grains and the trading company would control 40 percent to 50 percent of the country's output,according to the FT story.
The bottom line is that this action will probably lead ...
Posted in Uncategorized | Comments Off on Back to the Future
Thursday, July 31st, 2008
Carlyle Group is shuttering its Blue Wave Hedge Fund because they could not raise enough assets to make the enterprise worthwhile. (Worthwhile means generating fat fees for the operators of the hedge fund.) The hedge fund opened its doors around the time the credit crunch gripped the market last year ...
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Thursday, July 31st, 2008
The credit crunch reminds me of a Dickens novel with numerous characters,stories and subplots . The saga goes on as the head honcho at National Australia Bank warns of more heavy losses and writedowns at financial institutions.
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Thursday, July 31st, 2008
Overnight Economic Releases:
Australian TD Securities Inflation Rate (July)
German Retail Sales (June)
Australian RBA Commodity Index ( July)
Eurozone PMI (July)
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Thursday, July 31st, 2008
Prices of Treasury coupon securities surged today, as investors responded to weaker than expected economic data by driving bond yields lower. The main focus was the GDP data and the initial claims data.GDP was less than anticipated and prior periods were revised down with Q4 2007 showing outright contraction.
The initial ...
Posted in Uncategorized | Comments Off on Closing Comments July 31 2008
Thursday, July 31st, 2008
Agency spreads are wider by about 2 basis points across the curve. It was a lethargic trading session as investors anticipate the employment report tomorrow.The Federal Home Loan priced $3billlion of a 5 year note today at T+82. One trader commented that while the pricing was fair the deal struggled ...
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Thursday, July 31st, 2008
Mortgages are about 3 ticks wider to Treasury debt today. Participants report a lack of activity except for some originators selling some product. The coupon of choice this morning was 6.5s.One portfolio manager noted that the issue of the new higher loan limit has not been settled yet. Some feel ...
Posted in Uncategorized | Comments Off on MBS
Thursday, July 31st, 2008
Corporate bonds are showing surprising strength in the face og economic data which manifests weakness and a crumbling equity market.The IG 10 is a tad tighter at 130 ¾ /131 ¾ . One veteran salesperson suggested that there is still a substantial street short in the index and dips are ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Thursday, July 31st, 2008
The economic data released this morning have a dovish tint about them.The initial jobless claims report showed a big jump in first time filers and in continuing claims. The 4 week moving average at 393K is approaching the Maginot line of 400k.
Some are trying to explain away some of the ...
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Thursday, July 31st, 2008
Prices of treasury coupon securities are virtually unchanged in overnight trading. The yield on the 2 year note has dropped 1 basis point to 2.62 percent. The yield changes on the other benchmarks are so minute as to be imperceptible so I will call them unchanged. The yield on the ...
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