Archive for October, 2008
Tuesday, October 7th, 2008
The corporate bond market is mired in a melancholy malaise. Sentiment is glum and no amount of good news can shift sentiment. The Federal Reserve announcement this morning of the CP rescue package should have sparked some buying. One veteran corporate bond salesman noted that he saw not even a ...
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Tuesday, October 7th, 2008
My money market interlocutor tells me that the Federal Reserve effort in the commercial paper market has restored a modicum of equanimity to that sector. But he says that the jury is still out on whether or not this is the solution to front end funding problems.In his view there ...
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Tuesday, October 7th, 2008
Swaps are about 4 basis points to 5 basis points tighter to Treasury paper. Mortgages are lagging swaps by about a basis point.
There was some overseas mortgage selling early but that was met with some hot money buying.
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Tuesday, October 7th, 2008
The IG 11 closed last night at 177 1/2. Following the Federal Reserve bail out of the CP market the index is around 161 1/2.
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Tuesday, October 7th, 2008
I have not read the details of this nor have I picked the brain of my money market source but here is the text of the Fed announcement. When the market has a chance to absorb the details I will visit with some traders and post on the topic.
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Tuesday, October 7th, 2008
As I wrote this morning I noticed that the breakeven spread on 10 year TIPS had collapsed to 125 basis points. That means that the market is predicting now that inflation will average (only) 1.25 percent per year over the next 10 years. That is as low as I can ...
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Tuesday, October 7th, 2008
Prices of Treasury coupon securities have retreated in overnight trading as the gloom and doom which coursed through the veins of the market yesterday has faded somewhat. The worldwide equity rout of yesterday is more of a skirmish today. Most European exchanges are posting gains in the 1 percent to ...
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Monday, October 6th, 2008
If you have been declared redundant or suddenly found yourself with out a job due to exigent circumstances, you might want to check this out.
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Monday, October 6th, 2008
Prices of Treasury coupon securities rocketed today as fear gripped every corner of the world today. Money markets are frozen, stocks have returned to levels last seen in the glory days of the 1990s, corporate finance mechanisms are locked, commodities are skidding to new lows and risk in any form ...
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Monday, October 6th, 2008
Swap spreads were tighter today by 3 ½ basis points in the 2 year sector, ½ basis point in the 5 year and 10 year sectors and by 1 ¼ basis points in 30 years.There has been chunky receiving in the back end by servicers and hedge fund. One derivative ...
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