Archive for August, 2008
Monday, August 25th, 2008
Prices of Treasury coupon securities surged today as the credit crunch hovers and associated economic weakness hangs over the market like a funeral pall draped over a casket. It is sad and depressing and good news is hard to find.The day opened with the news that there would not be ...
Posted in Uncategorized | Comments Off on Closing Comments 08/25/08 (LONG)
Monday, August 25th, 2008
The cash market for corporate bonds is virtually closed. There is nothing in the way of new issues and cash market trading is not even sporadic. One seasoned salesman said that conditions feel as bad as they have anytime in the last six months. Thinking that he might be a ...
Posted in Uncategorized | Comments Off on Corporate Bond Market
Monday, August 25th, 2008
Today is Remittance Day for mortgage collateral holders. It is especially noted in the woeful land of ABX as participants evaluate the quality or lack thereof which supports the various ABX tranches.Dealers and investors will spend the day running the data through models but one participant with whom I spoke ...
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Monday, August 25th, 2008
Agency spreads are 2 basis points to 4 basis points wider across the yield curve. Two traders with whom I spoke attribute the weakness to generalized aversion to risk rather than heavy selling by clients.
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Monday, August 25th, 2008
MBS are approximately unchanged versus swaps.There has ben two way flow. Servicers have been better buyers and originators as is their custom have been better sellers.
Swap spreads are under pressure with 2 year spreads wider by 1 1/2 basis points, 5year spreads wider by 3 basis points and 10 year ...
Posted in Uncategorized | Comments Off on MBS and Swaps
Monday, August 25th, 2008
Benchmark Treasury paper is rallying rather dramatically in the early going. No one With whom I speak has a good reason.
There were Lehman is going bust rumors but that would seem patently bogus. The CDS which i quoted an hour ago at 335/345 are now 10 basis points wider at ...
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Monday, August 25th, 2008
IG 10 is opening 141/142. I do not have a late clsoe but at about 1100AM on Friday it had tightened 8 basis points to 139.
At the same time CDS on Lehman were quoted 322/332 and had traded as tight as 300. They are currently 335/345.
FNMA and Freddie CDs are ...
Posted in Uncategorized | Comments Off on IG 10 Open
Monday, August 25th, 2008
Prices of Treasury coupon securities are modestly higher in overseas trading, partially reversing some of the losses suffered on Friday. Credit fears still dominate and they dominate in the press and were ever present at the deliberations at Jackson Hole over the weekend.Bloomberg carried a story (which I linked to ...
Posted in Uncategorized | 4 Comments »
Sunday, August 24th, 2008
HeadlineCharts is a blog which is kind enough to link to acrossthecurve.com. I checked out the site and I found it very interesting and would recommend that you pay it a visit.
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Sunday, August 24th, 2008
The markets seem to be on an inexorable mission to push FNMA and Freddie Mac to the brink and to test the mettle of the Treasury and Hank Paulson. The markets will be very thin this week as many participants will be off until after the Labor Day holiday and ...
Posted in Uncategorized | 6 Comments »