Archive for September, 2008

More on Lehman Rescue

Saturday, September 13th, 2008

The Wall Street Journal reports that discussions are ongoing today to formulate a rescue package for Lehman Brothers  this weekend. ( I imagine the scene from "The Godfather" when the heads of the families came together in a plush, panelled board room to end the ruinous war which was destroying ...

NY Times On the Pow Wow

Saturday, September 13th, 2008

The New York Times reports in a more detailed story than the WSJ on the gathering of financial grand poohbahs at the New York Fed last night. There were more attendees than the Journal indicated and included officials from Goldman Sachs, Bank of New York Mellon and Citibank. The article reports ...

Pow Wow At The New York Fed

Friday, September 12th, 2008

The WallStreet Journal is reporting a gathering of financial market heavyweights to discuss the future of Lehman Brothers and the troubled state of the financial world.

Mortgage Close

Friday, September 12th, 2008

MBS spent most of the day 3 basis points to 4 basis points tighter to swaps. Late in the day selling by originators and total rate of return clients cheapened MBS into the close and they finished 2 basis points tighter to swaps.Banks and originators were also observed selling  to ...

Administrative Note

Friday, September 12th, 2008

I  remain in Chicago with my wife as we visit our (pregnant) daughter and her husband. Consequently, posting to the blog will remain on the sporadic side today.

Lehman CDS

Friday, September 12th, 2008

CDS  on the beleaguered  investment bank have slipped to 530/560. CNBC is reporting that prospective buyers are seeking a Dimonesqe Bear Stearns type deal with significant back stop from the Treasury. 

Credit Open

Friday, September 12th, 2008

IG 10 is opening 153/154. Lehman Brother CDS quoted 515/545. The last quote I posted on Lehman late yesterday was 500/520.

Opening Comments

Friday, September 12th, 2008

Prices of Treasury coupon securities ae posting , on balance, small losses in overseas trading. As of this writing there is no consumated transaction for Lehman Brothers and maybe the market is signalling a level of acceptance of very debilitated investment banks. Having said that, it would surprise me if ...

Agency Holdings of Foreign Central Banks.

Thursday, September 11th, 2008

Each Thursday the Federal Reserve discloses a raft of information regarding its balance sheet and the various factors which affect reserve flows. They also disclose the securities holdings of the foreign central banks for which they do safekeeping. Foreign central bank holdings of agency securities declined again this week. On ...

Miscellany

Thursday, September 11th, 2008

Mortgages are closing the day about 2 ticks wider to swaps.Swap are tighter by 1 1/2 basis points in the 2 year sector and the 5 year sector and 1 1/4 basis points in the 10 year sector.