Archive for October, 2008

Money Market

Wednesday, October 15th, 2008

The bank and financial name sector of the money market remains in grid lock. The preponderance of trading activity is confined to the overnight sector. My correspondent in this sector remains confident that the extraordinary actions of the Treasury and the Federal Reserve will unclog the system but he is ...

IG 11

Wednesday, October 15th, 2008

Credit spreads leaking wider as a more recent quote (and prior to 830AM numbers) makes the IG 11 184 1/2  /  186 1/2. 

Swap Spreads

Wednesday, October 15th, 2008

Swap spreads are opening a bit tighter. Two year sector spreads are tighter by 2 1/4 basis points, five year sector spreads are tighter by 1 3/4 basis points and 10 year sector spreads are tighter by 3 basis points.

Corporate Bonds

Wednesday, October 15th, 2008

The IG 11 is opening 7 wider as it is quoted 181/184.One dealer makes the interesting point that with government backing in place financial names should enter a period of stability. However, the same dealer posits that non financials should decouple and in the recessionary environment should significantly underperform financial names.

Libor

Wednesday, October 15th, 2008

*THREE-MONTH DOLLAR LIBOR 4.55% VERSUS 4.64%, BBA SAYS     *ONE-WEEK DOLLAR LIBOR 3.83% VERSUS 4.08%, BBA SAYS     *OVERNIGHT DOLLAR LIBOR 2.14% VERSUS 2.18%, BBA SAYS

Money Market

Wednesday, October 15th, 2008

Libor is expected to open 5 basis points to 8 basis points lower across the curve. ( Not a shameless plug.)One dealer reports some buying of one week and one month ABCP in Europe. The level of activity is light and the purchases have been confined to AAA names.

Opening Comments October 15 2008

Wednesday, October 15th, 2008

Prices of Treasury coupon securities have surged in overnight trading, partially erasing recent losses and reflecting a shift in sentiment to the debilitated condition of the global economy and away from the euphoria spawned by actions of governments to stave off imminent financial collapse. If focus does shift back to ...

Back to the Future

Tuesday, October 14th, 2008

Politico.com reports that that as the Democrats prepare to assume control of the entire apparatus of government,they have dusted off the history books to study Depression era solutions to some of our current problems.

Some Closing Comments October 14 2008

Tuesday, October 14th, 2008

Prices of Treasury coupon securities plummeted today (though most of the drop occurred in the overseas session) as the domestic market had an initial opportunity to respond to the historic actions of the Bush Administration which has commanded a recapitalization of the banking system. The yield on the 2 year ...

Corporate Bonds

Tuesday, October 14th, 2008

The IG 11 is last quoted 176 /177 ½. That is off the best levels of the day which were right out of the chutes this morning when the index traded around 172. The mid market close of IG 11 on Friday was around 219 so even though we have ...