Archive for November, 2008

Reaction to the Bailout

Monday, November 24th, 2008

Tokyo is closed so there is no US Treasury trading this evening. We will have to wait for EUrope to arrive to get a reaction. Stocks are higher. That also seems ludicrous. I do not care what they call this but Citibank is effectively acknowleding that they did not have the ...

Citibank

Monday, November 24th, 2008

Here is Wall Street story on the bailout. The taxpayers have some skin in the game on this one. http://online.wsj.com/article/SB122747680752551447.html?mod=testMod  http://www.fdic.gov/news/news/press/2008/pr08125a.pdf

WSJ on Citi Rescue

Sunday, November 23rd, 2008

Perusing the world wide web, the Wall Street Journal seems to have the best insights on the Citi rescue. I would suspect that something will be announced before the stock market opens tomorrow morning. If the situation continues to fester, it will ignite more volatility and probably make already hesitant lenders even less ...

Sunday Evening Links

Sunday, November 23rd, 2008

The New York Times reports that active discussions are under way to salvage Citibank. The article makes the obvious point that the Citibank is too large to fail and discussions center around what type of stake the taxpayers would take as well as what amount of losses Citibank would incur ...

Closing Comments November 21 2008

Friday, November 21st, 2008

Prices of Treasury coupon securities reversed course today and surrendered some of the outsized gains achieved yesterday. Some participants suggest that the frantic, frenzied flow observed at the end of the day yesterday was the crescendo or climax that is observable at the end of a process rather than a ...

MBS

Friday, November 21st, 2008

Mortgages have marginally  outpaced Benchmark Treasury securities this morning. There has been two way flow thus far. Banks have been both buyers and sellers. Originators as is their custom have sold. Dealers report that the Treasury has been a buyer as have money managers.

Citibank

Friday, November 21st, 2008

Once upon a time in the New York Metropolitan area Citibank ran an advertising campaign with the theme that the Citi never sleeps. As we speak the stock trades with a $3 handle and is off 22 percent today. At that dollar price there will be frantic activity this weekend and ...

IG 11

Friday, November 21st, 2008

IG 11 now 10 better than the first quote at 267/272.

An Intersting Piece on Agency Spreads

Friday, November 21st, 2008

Another piece from a dealer which delineates the extent to which agency spreads have moved versus Treasury benchmarks and Libor. What a week in Agencies. 2s, 5s, 10s, 30s have widened 56bp, 46bp, and 62bp, and 82bp, respectively, to the widest asset swap levels on record: L+86, L+71,  L+155, and L+228. ...

A Note on Recent Price Action

Friday, November 21st, 2008

I think I have found a great piece from a dealer which contains some of the best explanation of the recent rate plunge as well as an explanation of the receiving in the swap market. we have seen heavy receiving from insurance companies and real money who are faced with significantly ...