Archive for August, 2008

Some Early Morning Reading

Tuesday, August 19th, 2008

Financial stress was the main driver of the various markets yesterday and the FT recounts the redeveloping fissures in the Libor market. I had to sneak this one in here. Also from the FT it is a story about how some of the social welfare programs which have been in place ...

Closing Comments August 18 2008

Monday, August 18th, 2008

Prices of Treasury coupon securities registered solid gains today as a host of factors contributed to the markets firm tone. The principal factor in the firmness in the bond market was the reemergence of the risk aversion trade. Spreads in most other investment grade assets classes are widening as the ...

Agency Agony

Monday, August 18th, 2008

The agency market has been a place of sturm and drang today.  The principal focus of market participants has been talk of recapitalization of FNMA and Freddie by the Treasury and the result of that recapitalization on current hoders of various classes of debt and equity.  Regarding the holders of subordinated ...

CMBS

Monday, August 18th, 2008

CMBS paper which had a rocky day on Friday continues to be buffeted by client selling, a lack of liquidity as many dealers are on vacation and belief that the wide spreads attained during the Bear Stearns debacle in March will be revisited.Clients are rummaging through portfolios and cash bonds ...

Credit News

Monday, August 18th, 2008

FNMA and Freddie Mac CDS on subordinated debt have opened 20 basis points wider than levels which prevailed late Friday. FNMA is quoted 290/305 and Freddie is quoted295/310.The American Express deal which priced 425 basis points over the 5 year Treasury and 90 cheap to comparable Amex paper has tightened ...

Agency and Swap Open

Monday, August 18th, 2008

Barron's had a very negative article this weekend on FNMA and Freddie Mac and predicted the imminent demise of those institutions via an infusion of taxpayer funds via Hank Paulson and his minions. I noted some of the details in my opening comments post.The agency market has responded by moving ...

MBS Open

Monday, August 18th, 2008

Mortgages are opening 3 ticks tighter Treasury debt and 5 to 6 ticks tighter to swaps.Volume has been light. Originators, as is their wont, have been small sellers. The street appears to have a short covering bid.

IG 10

Monday, August 18th, 2008

The IG 10 is opening around 134. It closed around 136.

OVernight Flow

Monday, August 18th, 2008

Some Overnight Treasury Flow: Hedge fund sellers of 10 year.  Hedge fund sellers of 5 years. Asian end users buying 5 years. European sellers 2 years. Japanes receivers in 10 years.

UK Home Prices

Monday, August 18th, 2008

I failed to catch this story a bit earlier. UK home prices registered their largest drop (nearly 5 percent) since record keeping began six years ago.