Archive for September, 2008
Tuesday, September 9th, 2008
Prices of Treasury coupon securities registered losses in overseas trading as the residue of the GSE bailout diminishes the need for risk free assets. The yield on the benchmark 2 year note has climbed 5 basis points to 2.35 percent. The yield on the 5 year note has also jumped ...
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Monday, September 8th, 2008
Prices of Treasury coupon securities are closing with modest gains but that belies the wild rollercoaster ride which those securities have taken in the last 24 hours. Sentiment regarding Treasury debt had shifted to the very negative as the rescue package was detrimental to treasuries in a variety of ways. ...
Posted in Uncategorized | Comments Off on An Historic Day: September 8 2008
Monday, September 8th, 2008
Corporate bond spreads participated in the orgy of spread tightening today but the thrill began to fade as the day progressed. Financials were 20 basis points tighter in very early trading and they are closing about 10 basis points tighter.Industrial names tightened by about 10 basis points early and are ...
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Monday, September 8th, 2008
Agency debt is closing the day dramatically tighter as the rescue package prompted buying from investors and also moved the street to mark prices higher. Two year sector paper closed 35 better than Friday levels, 5 year sector paper is tighter by 30 basis points and 10 year paper is better ...
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Monday, September 8th, 2008
Credit spreads in the corporate market have leaked wider.The IG 10 opened the day around 135 and it is now 138.
Financial stocks rallied sharply at the start of the day but many are well off their highs and that is pressuring corporates somewhat. I am not sure what the story ...
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Monday, September 8th, 2008
Why has there not been more discussion about the treatment of the subordinated debt holders? Those investors knowingly and with premeditation (I assume) purchased paper which was "riskier" than other agency debt. They received a chunky yield pick up for their faith in that lower rated paper.
Now the companies are ...
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Monday, September 8th, 2008
Mortgages are tighter to swaps by about 1 1/2 points . They look to be about 2 points tighter to benchmark treasury paper. However, one salesman with whom I spoke noted that on Friday nobody desired to buy them and today nobody wants to sell them. The market is highly ...
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Monday, September 8th, 2008
I have new agency quotes which indicate significant tightening of agecny spreads to benchmark Treasury paper.
2year -36 basis points
5 year -31 basis points
10 year -25 basis points
30 year -22 basis points.
I think this stuff should tighten more from these levels.
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Monday, September 8th, 2008
Early indications are that risky assets will open sharply higher. The first quotes which I have been able to garner on agency paper have 2 year FNMA benchmarks better by 19 basis points. The 5year FNMA better by 11 basis points and the 30 year improved by just 3 basis ...
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Monday, September 8th, 2008
Prices of Treasury coupon securities have recovered from the worst levels attained last evening. Yields on benchmark Treasury debt had jumped sharply in response to the rescue of FNMA and Freddie Mac by US regulators.The benchmark 2 year note currently yields 2.42 percent which is 10 basis points better than ...
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