Archive for September, 2008

Lehman

Thursday, September 11th, 2008

I am visiting family (my daughter) in Chicago and I have not been focused on the markets sine about 1230PM New York time. I have seen the WSJ story that reports discussions between B of A and Lehman Brothers. At this point Lehman Brothers has probably had conversations with anyone ...

MBS

Thursday, September 11th, 2008

Mortgage spreads leak wider and are now 8 ticks wider to swaps. There has been chunky selling by hedge funds and originators. (Most of the originator selling has been in FNMA 5s.) Money managers, banks and insurance companies have populated the buy side but have not been able to overcome ...

Update

Thursday, September 11th, 2008

Swap spreads are wider by 2 1/2 basis points in the 2 year sector, 2 1/2 basis points in the 5 year sector and 1 1/4 basis points in the 10 year sector.Lehman CDS are currently 770/800.Wamu CDS are trading with 40 points upfront which is actually unchanged from last ...

MBS

Thursday, September 11th, 2008

MBS opening 3 ticks weaker to 10 year Treasury and 6 ticks weaker to 5 year Treasury.Agency debt opening with small mixed changes.   

HSBC on Initial Claims and Trade

Thursday, September 11th, 2008

HSBC: US Jobless Claims, Trade Balance, Import Prices           * Labor market remains poor as initial jobless claims (Sep 6      wk) stay elevated at 445k (consensus 440k). 4-week average at   440k indicates a high and persistent rate of job losses       * Continuing claims for previous week climbs to ...

IG 10

Thursday, September 11th, 2008

The IG 10 has leaked to about 152. CDS on Lehman Brothers are wide but real at 750/800

Some Opening Comments September 11 2008

Thursday, September 11th, 2008

Prices of Treasury coupon securities surges in overseas trading as fears of economic contraction and credit concerns dominate trading. The yield on the benchmark 2 year note has slipped 5 basis points to 2.15 percent. The yield on the benchmark 5 year note has declined 6 basis points to 2.84 ...

Administrative Note

Wednesday, September 10th, 2008

I am travelling today to the heartland of America. My wife and I are visiting our daughter and son and law in Chicago. I will be back blogging tomorrow.  Good luck. JJJ

IG 10 After Lehman

Wednesday, September 10th, 2008

The IG 10 is 148 ½ /149 1/2 post the Lehman earnings announcement. It had been around 143 prior.There is no decent quote on Lehman CDS as there is a conference call as we speak. There was a 540 bid but no offer side.

Some Opening Comments September 10 2008

Wednesday, September 10th, 2008

Prices of Treasury coupon securities have retreated in European trading reversing some of the outsized gains attained yesterday. The largest declines were in the shorter maturities, reflecting a reduction in fear premium. That seems a tad premature since Lehman Brothers will announce its earnings at 730AM New York time. There ...