Archive for August, 2008

Corporate Bonds

Friday, August 8th, 2008

The corporate bond market as recorded by the IG 10 did not have an especially swell day. The index is closing the day at 134 ¼ / 135 ¼. That is about where it was this morning at the open and pretty close to the level at which it finished ...

The Mighty Greenback

Friday, August 8th, 2008

The dollar has surged dramatically against the Euro and registered more modest gains versus the Euro. I think a top is now in place for the Euro and the comments by Trichet yesterday were the catalyst for the crash of the Euro.The market action reflects the economic fundamentals away from ...

More MBS

Friday, August 8th, 2008

The animal spirits are racing through the mortgage market today. Mortgages are about 5 basis points tighter to swaps. There has been robust buying  and down in coupon trades from an eclectic array of end user clients.There has been a modest amount of selling from originators. Servicers and Asian based ...

MBS

Friday, August 8th, 2008

There have been some chunky buyers of MBS this morning and spreads are tighter to Treasuries and swaps by about 8 ticks.End users and hot money types have been seduced by record wide spreads and have entered the fray on the buy side.

Spreads

Friday, August 8th, 2008

Agency spreads initially moved wider by 2 basis points to 3 basis points . Benchmark paper has tightened a bit and is currently 1basis point to 2 basis points tighter. In corporate bond land the IG 10 is 135 1/2 136 1/2 which is about 1/2 basis point wider than the ...

FNMA

Friday, August 8th, 2008

FNMA has released its Q2 earnings report and it is not a pretty sight. The firm reported a net loss of $2.3 billion in Q2 after losing a cool $2.32 billion in Q1.The chief factor driving the loss was a sharp increase in provisions for credit losses. In Q2 FNMA ...

Some Overnight Flow

Friday, August 8th, 2008

Some Overnight Treasury FlowAsian Real Money Buys 2s Bank buyers in 5s. Spec sellers 5s. European real money selling 10s

Some Opening Comments 08-08-08

Friday, August 8th, 2008

Prices of Treasury coupon securities are modestly lower in overseas trading as some professional profit taking emerged after the sharp price gains of yesterday. Some of those gains sprang from fear and while equity markets are not exactly ebullient there is a modicum of stability and that drained some of ...

Closing Comments August 07 2008

Thursday, August 7th, 2008

Prices of Treasury coupon securities moved dramatically higher today in an exciting day of trading. The market opened with a very firm tone as the AIG confession renewed worries about credit.Some economic data fuelled the fire. The weekly report on initial claims jumped sharply to 455K when forecasters had been ...

Agency Market

Thursday, August 7th, 2008

Agency spreads are 3 basis points to 5 basis points wider today. Some dealers report that there were Japanese sellers of the agency product last night and that left the market with a soggy tone this morning. The market remains very illiquid and a comparatively small amount of bonds has the ...