Archive for October, 2008

Money Markets

Monday, October 27th, 2008

The Federal Reserve opened the Commercial Paper Funding Facility for business today. It came off pretty much without a hitch. This facility buys commercial paper from issuers (such as GE) and will hold that paper. Today funding was about 70 basis points through Libor which is a pretty good deal.Next ...

Swaps and MBS and Another IG 11 quote

Monday, October 27th, 2008

Swaps are significantly tighter than when I wrote earlier. In the two year sector spreads are tighter by 9 1/4 basis points to 114.  Five year spreads have tightened 5 basis points to 105 and 10 year spreads are 3 1/4 basis points tighter at 44 1/2. Some of the receiving ...

Swap Spreads

Monday, October 27th, 2008

There is little change in swap spreads this morning.The 2year is tighter by 2 1/2 basis points at 122 basis points. The 5 year, 10 year and 30 spreads are flat at 110,47, and ZERO,respectively.

FX

Monday, October 27th, 2008

I posted elsewhere the terse G7 statement of last evening which decried the volatility in the FX market in general and singled out the yen for particular attention. One analyst whom I read this morning noted that after an initial sell off follwing the statement the yen has since rallied.  It ...

More IG 11

Monday, October 27th, 2008

IG 11 is now 228/233 which makes it about 20 wider for the day.

IG 11

Monday, October 27th, 2008

IG 11 is opening about 12 wider at 221/224.

Libor Deferred

Monday, October 27th, 2008

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Opening Thoughts October 27 2008

Monday, October 27th, 2008

Prices of Treasury coupon securities are surging this morning as the historic global margin call continues and fears of a deep and protracted recession lead investors to the relative safety of government bonds. The yield on the 2 year note has dropped 8 basis points to 1.43 percent. The yield on ...

Some More Links

Monday, October 27th, 2008

Japanese stocks at 26 year low, as per Reuters. Treasury has stakes in banks, at least one insurance company,and two firms which formerly operated as investment banks. Here is chance to buy a piece of automobile firm on the cheap. UK home prices continue to fall in most recent data. Retailers see gloomy ...

G7: A Terse Statement

Monday, October 27th, 2008

The G7 issued a statement regarding the volatility in the exchange markets. They are especially concerned about the yen.