Archive for October, 2008
Monday, October 6th, 2008
The money markets have frozen solid again. My favorite correspondent on that market reports that participants are following the advice of Polonius and are refraining from borrowing or lending. The Federal Reserve announcement earlier today of a gigantic increase in the size of the TAF program has not broken the ...
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Monday, October 6th, 2008
The corporate bond market is more illiquid than usual. There is virtually no trading. Everyone wants to buy protection but there are no sellers. One salesman noted that the only sellers of protection are less than credible counterparties.
The IG 11 was 180/183 last.
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Monday, October 6th, 2008
The movements in the FX market are incredible. One friend just read me something which he has received from an fx trader which said that the only things that anyone desires to own are the US dollar,the Japanese Yen, gold, bottled water and bullets!!!
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Monday, October 6th, 2008
This I have not read as it is hot off the press.
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Monday, October 6th, 2008
http://www.federalreserve.gov/newsevents/press/monetary/20081006a.htm
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Monday, October 6th, 2008
The IG 11 closed around 167 on Friday and is quoted around 172 basis points this morning. Given the carnage lapping up against the doors of the world's financial markets, that is more stability than I might have expected.
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Monday, October 6th, 2008
The moment of good feeling in the money markets which I referenced on Friday has evaporated. My money market source says that the headline news from Europe has overwhelmed the markets and fear is once again ascendant.In addition to the widely disseminated headlines there are other stories percolating below the ...
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Monday, October 6th, 2008
Prices of Treasury coupon securities are surging in overnight trading as the massive maelstrom known as the credit crisis intensifies. The situation in Europe deteriorated markedly in Europe over the weekend as authorities scrambled to keep the system afloat and to avoid some financial Armageddon which appears increasingly nigh.Over the ...
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Monday, October 6th, 2008
October 6, 1979 is the date on which Federal Reserve Chairman Volcker announced revolutionary policy changes to fight the debilitating inflation which had ravaged America in the 1970s.
Volcker changed the operating procedures at the Fed and switched the focus of the Fed to controlling bank reserves and allowing for greater ...
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Sunday, October 5th, 2008
The Wall Street Journal on line carries a story on the weekend woes of the credit markets. This time Europe has its has full.
The Financial Times says that the Federal Reserve is under increasing pressure to shock the system to its senses. They are running out of bullets. They have ...
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