Archive for September, 2008
Sunday, September 7th, 2008
I just spoke with a trader in Tokyo who works for a rather substantial primary dealer. He said that benchmark agency spreads are about 20 basis points tighter than levels which prevailed at 300PM on Friday. Following the Wall Street Journal report spreads tightened about 10 basis points and have ...
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Sunday, September 7th, 2008
WordPress did not accomodate my last post of CreditSuisse research very well. I will apologize but will leave it up as it is. It is the first street research I have seen on the implications of the bailout on the spread markets. It will take a little work to read it but ...
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Sunday, September 7th, 2008
Someone sent me this piece from Credit Suisse:
Fannie Mae and Freddie Mac Move into Government Conservatorship
On Sunday, the Treasury Department took Fannie Mae and Freddie Mac into conservatorship – effectively having the government run the firms. The action was taken because the government (FHFA and Treasury) are concerned about the ...
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Sunday, September 7th, 2008
Just a word on Treasury prices and how much they have moved since late Friday.I posted my daily closing commentary at 423PM on Friday. The benchmark yields which I used would have been recorded around 400PM before the WSJ story hit the tape. (I am older. Humor me. There was ...
Posted in Uncategorized | Comments Off on A Perspective on Early Trading Of Treasury Debt in Tokyo
Sunday, September 7th, 2008
I had done all the writing I could earlier for a Sunday.
I think that credit spreads of every type will tighten. I think that the Treasury yields will do the brunt of the work. The 10 year Treasury has just completed a rally from 4.25 percent down to the middle ...
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Sunday, September 7th, 2008
I think that the Treasury has directly addressed the immediate problems which confronted the GSEs which were uncertainty, ambiguity and lack of clarity regarding the relationship between the Treasury and the Agencies. The Treasury has illuminated that issue and there can not be any question about where the Treasury stands ...
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Sunday, September 7th, 2008
The Treasury has established a short term lending facility for the GSEs which will be administered by the Federal Reserve Bank of New York. The loans will have terms of one week to one month and the rate will be Libor plus 50 basis points.All loans must be collateralized by ...
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Sunday, September 7th, 2008
The Treasury has also announced that it some time later this month it will commence direct purchases of GSE credit guaranteed MBS. They can hold the securities to maturity though they might adjust the portfolio if that is deemed appropriate.Treasury will have outside managers acting as its agent. The prime ...
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Sunday, September 7th, 2008
In conjunction with the statement of Secretary Paulson the Treasury has provided several fact sheets which flesh put the plan. I just read through the agreement which summarizes the Preferred Stock Purchase Agreement.
The Treasury will purchase Senior Preferred Shares of each entity and will begin with an initial purchase of $1billion. ...
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Sunday, September 7th, 2008
Here is the text via Bloomberg of the Paulson statement on the action today which places freddie and FNMA into orderly bankruptcy and reorganization. I need to read and digest before I comment.
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