Archive for August, 2008

Potpourri of Spreads

Tuesday, August 26th, 2008

Mortgages are finishing the day about 2/32 tighter to the swap market. There was some buying by hot money types and servicers but flow was very light.Swap spreads tightened by 3 basis points in the 2 year sector, 2 ½ basis points in the 5 year sector and 2 basis ...

Corporates

Tuesday, August 26th, 2008

The corporate bond market is a little softer than when I reported on it earlier. The IG 10 is 144 ¼ /145 currently. There is very little cash trading and the market has a heavy feel about it. One salesman noted that it felt heavier yesterday than Friday and today ...

Agency Market

Tuesday, August 26th, 2008

Agency spreads are unchanged after an initial flurry of tightening. There is a $3billion Home Loan global deal which is being priced later in the week and it has dampened sentiment. The issue is being market at T+ 133 basis points. (For the uninitiated the deal prices off the 2 ...

Corporates

Tuesday, August 26th, 2008

The IG 10 is wrapped around 144. In the middle of the day yesterday the index was trading around 147. Once again there is very little business being transacted in the cash market.Lehman is quoted 365/375 as the euphoria from the Korean takeover story fades. It traded as tight as ...

Goldman Says GSE Bailout Not a Big Deal

Tuesday, August 26th, 2008

Goldman Sachs is out with a report which says that a government sponsored bailout of FNMA and Freddie Mac is entirely manageable, according to a CNN story. I have the news story and I suppose there is an entire research report with all the details. The CNN story makes it sound ...

HSBC on CASE SHILLER

Tuesday, August 26th, 2008

Commentary from HSBC on Case Shiller:   if (typeof YAHOO == "undefined") { var YAHOO = {}; } YAHOO.Shortcuts = YAHOO.Shortcuts || {}; YAHOO.Shortcuts.hasSensitiveText = false; YAHOO.Shortcuts.sensitivityType = []; YAHOO.Shortcuts.doUlt = false; YAHOO.Shortcuts.location = "us"; YAHOO.Shortcuts.document_id = 0; YAHOO.Shortcuts.document_type = ""; YAHOO.Shortcuts.document_title = "HSBC: Jun S&P/Case-Shiller ...

MBS

Tuesday, August 26th, 2008

Mortgages are opening 2 ticks tighter to swaps. Trading volumes in the early hours are light.One dealer note posited that the mortgage basis should improve into month end as buyers emerge. There is also quite a bit of focus on a quarterly report from the FDIC which will be available later ...

Freddie Mac

Tuesday, August 26th, 2008

I did not pick this up yesterday but it is worth mentioning. Freddie sold 3 month bills and 6 month bills yesterday and stock jockeys allegedly took that as a reason to rally the stock. First of all it was only$1 billion of each. That is a piddling amount and in ...

Some Overnight Flow

Tuesday, August 26th, 2008

Central Bank and Hedge Fund sellers of 10 years. Central Bank buyers of 2 years. Central bank buyers of callable agencies. Japanese receivers in 2year and 3 year sectors.

Opening Comments 08/26/08

Tuesday, August 26th, 2008

Prices of Treasury coupon securities are registering small mixed changes in overnight trading. The gloom which hung over the US markets yesterday remains today and motivated trading in foreign markets.Asian equities fell in sympathy with the steep decline in US equities and as the concerns of investors in that region ...