Archive for July, 2008

Weak Open for Credit

Tuesday, July 15th, 2008

Early indications are that credit is opening very weak. The IG 10 had seen consistent support at the 140 level. Not so anymore as a recent quote pegs it 146.25 /147.25Wachovia Bank is indicated 25 wider and banks and brokers generically are 10 to 20 wider.

Some Very Lengthy Opening Comments July 15 2008

Tuesday, July 15th, 2008

Prices of Treasury coupon securities have climbed higher in overnight trading as credit fears and a variety of economic factors drove investors to the safety of bonds.The litany of troubles which investors will face as they confront the new trading day in the US is lengthy. Stocks around the globe ...

Some Links for July 15 2008

Tuesday, July 15th, 2008

From the New York Times, a story which details the over the weekend efforts of administration officials and regulators to rescue the GSEs. Some dry humor and some numerology from the Times. This story,also from the NYTimes, on many levels reads as though it were a piece of Swiftian satire.

Closing thoughts July 14 2008

Monday, July 14th, 2008

Prices of treasury coupon securities surged today as the weekend rescue of FNMA and Freddie Mac did little to remove the residue of fear which clings to the financial markets. While the GSEs received the imprimatur of Treasury Secretary Hank Paulson, fear and anxiety swirled around several regional banks and ...

Corporate Bonds

Monday, July 14th, 2008

Corporate bond spreads opened tighter but the soggy price action in the financial sector has induced a merdurinous tone in the entire sector. The IG 10 was several basis points tighter early in the day but it is finishing a couple wider.Portfolio managers report very little secondary market trading and ...

Agency Recap

Monday, July 14th, 2008

Agency spreads are closing wider on the day after opening substantially tighter. Some traders suggest that some of the back up today reflects profit taking following the sharp narrowing of spreads late last week. Benchmark spreads in the 2 year sector are wider by about 3 basis points. Benchmark spreads ...

NCC

Monday, July 14th, 2008

Trading halted in NCC, National Citi Cleveland. The stock is down over 25 percent and is in a flirtation with the zero level.

Miscellaneous News

Monday, July 14th, 2008

The one month bill has rallied by about 20 basis points this morning and earlier it was as much as 40 basis points lower. The 2year note is leading a curve steepening move which has 2 year/10 year about 5 basis points wider than it was at the open. The ...

IG 10

Monday, July 14th, 2008

The IG 10 opened around 134 but with the sell off in financial  stocks it is back around 138.

Update

Monday, July 14th, 2008

The treasury market is confounding the non believers with a bit of a rally and a bit of a steepening trade. The treasury market is responding to some softness in the equity market and particularly to softness in financial stocks. FNM, FRE and LEH each opened to strong gains but ...