Archive for September, 2008
Wednesday, September 17th, 2008
Bloomberg is carrying a story that CDS on US Government debt is rising. If there are more transactions over time similiar to the one completed yesterday, the CDS will continue to be under pressure and I suppose ultimately the AAA rating would come under attack.
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Wednesday, September 17th, 2008
Swaps are 3basis points to 8 basis points wider this morning. FNMA 5s are lagging treasuries by 20/32.
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Wednesday, September 17th, 2008
Fear is ascendant once again in the short markets. In the comment section of an earlier posting, friend of the blog Full Carry noted that the October 16 T bill traded at negative 1 basis point for cash settlement. The 3 month Tbill rate has declined 45 basis points and ...
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Wednesday, September 17th, 2008
Maybe I should retract some of the sanguine thoughts I offered in my opening comments.I just had a long conversation with a money market trader which gave me a jolt. Overnight Libor was just set at 5.00 percent . One month Libor was set at 3.03 percent which is up ...
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Wednesday, September 17th, 2008
Overnight Libor fixed at 5 percent. I am writing a longer post on the turmoil in the money markets which I will post in a bit.
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Wednesday, September 17th, 2008
Prices of Treasury coupon securities have registered modest declines in overnight trading as the US Government decision to buy an insurance company has, at least for the moment, assuaged the fears of investors and reduced the steamy flight to quality bid which had bolstered Treasuries.The yield on the 2 year ...
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Tuesday, September 16th, 2008
The term of the loan is 24 months. The interest rate is three month Libor plus 850 basis points. The loan is collateralized by all the assets of AIG and its subsidiaries.
The taxpayers now own 79.9 percent of a gigantic insurance company.
Additionally, I will stand by all of the criticisms ...
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Tuesday, September 16th, 2008
http://www.federalreserve.gov/newsevents/press/other/20080916a.htm
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Tuesday, September 16th, 2008
Let me begin by noting that no details have been released on the alleged transaction between the Federal Reserve and AIG and so to comment is dangerous. But I will anyway!
If the Federal Reserve Bank of New York plans to write an $85 billion check to AIG , then Treasury ...
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Tuesday, September 16th, 2008
This is amazing. As I wrote the other evening it is as if we are reading financial science fiction.
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