Archive for December, 2008

Corporate Bonds

Wednesday, December 3rd, 2008

The corporate bond market was something of a quiet backwater today. There was no meaningful issuance except in the FDIC guaranteed sector where Wells announced a $6billion deal.Yesterday was a heavy issuance day with Hewlett Packard and Caterpillar offering benchmark size deals. The Hewlett Packard 5 year priced at T+ ...

MBS Leaking Wider

Wednesday, December 3rd, 2008

One dealer reports that MBS spreads are now about 1/2 point wider (versus swaps) as originator selling overwhelms the modest amount of buying. One dealer noted that until there is some type of schedule regarding government purchases, the sellers would dominate the market.

Spreads

Wednesday, December 3rd, 2008

Swap spreads are dramatically unchanged this morning. The 5 year is a basis point wider and the rest of the stack is unchanged. Agency spreads continue to tighten but not with the same alacrity observed yesterday. Two year spreads are 4 basis points tighter and 5 year spreads are 2 basis ...

HSBC on ISM Services

Wednesday, December 3rd, 2008

HSBC: US Nov ISM Non-Mfg - Record Lows In Employment, New Orders * ISM non-manufacturing fell to 37.3 (consensus 42), from 44.4,   an all-time low since the survey started in July 1997          * Business activity (33 from 44.2) and new orders (35.4 from 44)   fall below 40 for the ...

FDIC Bond Quotes

Wednesday, December 3rd, 2008

Courtesy of a loyal reader and friend of the blog:   fdic debt, markets:                                                                              ...

Some Opening Thoughts December 03 2008

Wednesday, December 3rd, 2008

Prices of Treasury coupon securities are retreating in overnight trading and as I scout the news I am hard pressed to discern a solid reason for the setback. So I will apply the received wisdom of my three decades of watching this and suggest that the bond market has run ...

IG 11

Wednesday, December 3rd, 2008

The index is opening six wider at 259/265.

Libor

Wednesday, December 3rd, 2008

Libor US$ Fixing                  12/03        12/02      Change          OVERNIGHT        .88125      1.00375    -.12250 1 WEEK          1.18625      1.19875    -.01250 2 WEEKS         1.28250      1.29000    -.00750 1 ...

Closing Thoughts December 2 2008

Tuesday, December 2nd, 2008

Prices of Treasury coupon securities have posted another day of gains with the strongest advance in the belly of the yield curve. The 5 year note, the 10 year note and the Long Bond are all back within in a whisker of the lowest yields of the "modern" era.As I ...

A Visit to the Money Markets

Tuesday, December 2nd, 2008

I just chatted with the money market trader with whom I have not spoken in quite some time and I think that some of his observations are worth sharing with the readers of this constant epistle.He notes that he lives and works in a constantly improving corner of the fixed ...