Archive for July, 2008

Corporate Bond Update

Friday, July 25th, 2008

The corporate bond market is virtually closed with very little trading. The IG 10 is about a basis point tighter and the better than expected economic data this morning has imparted a firm tone to the cash market.WAMU continues to take a drubbing in CDS. The quotes are real but ...

Morning Update

Friday, July 25th, 2008

The Treasury market has taken a little bit of a respite following the sharp price gains yesterday. The stronger than expected Durable Goods report has taken some of the bloom off the rose. The yield on the 2 year note and the yield on the 10 year note has each ...

WAMU

Friday, July 25th, 2008

WAMU CDS are currently quoted 16 1/2  / 17 1/2 plus 500 basis points running. The last quote I had seen (which came from a reader) was 13/14.  So the market reflects an additional level of stress this morning.

HSBC on Durable Goods

Friday, July 25th, 2008

Some commentary from HSBC on the Durable Goods numbers. I guess the conclusion I can draw is that Armageddon has been deferred. HSBC: US June Durable Goods Orders - Strong Report              * June durable orders substantially better than expected with      total orders up 0.8% (consensus -0.3%)  ...

Agency Opening

Friday, July 25th, 2008

Agency spreads leaked wider overnight in Asia time. They are opening 2 basis points to 3 basis points wider across the curve.

July 25th 2008 Opening Comments

Friday, July 25th, 2008

Prices of Treasury coupon securities have edged higher in overnight trading as credit concerns and economic weakness dominate trading. Equity markets around the globe took their cue from the weakness in the US and most have posted sharp losses. Asian stocks dropped on the news that Australian banking house NAB ...

Wheelbarrow Alert

Friday, July 25th, 2008

Wage negotiations in Germany may give the ECB more reasons to raise rates.

Foreclosures

Friday, July 25th, 2008

I missed this earlier but the latest foreclosure report is not pretty and is another in a long litany of reasons not to raise rates

Some Links For Friday July 25 2008

Friday, July 25th, 2008

This one will be hard to top. Reuters reports that our European cousins want the Fed to raise rates. There has been no job growth this year as businesses shed workers. The unemployment rate is on its way to 6 percent. The declines in home prices are unabated. The financial ...

Antipodean Angst and Credit Losses

Thursday, July 24th, 2008

If this crisis is death by 1000 cuts I will posit that this is number 501.  In which case we are halfway home. http://www.reuters.com/article/ousiv/idUSSYD33747120080725