Archive for January, 2009
Tuesday, January 20th, 2009
Corporate bond spreads are in a bit of a bifurcated world again today. Industrial names are unchanged but feeling quite a bid softer. Very little has traded. Bank and finance paper has been battered once again. Citibank paper is wider by about 100 basis points. BOA paper is 50 basis ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Tuesday, January 20th, 2009
Mortgages are outperforming Treasuries in early trading as the Treasury market takes a pounding. Originators have been only modest sellers while hedge funds, money managers and banks have been better buyers. Participants are reluctant sellers, too , as they receive their daily injection from the Federal Reserve.FNMA 4s and 4.5s ...
Posted in Uncategorized | 3 Comments »
Tuesday, January 20th, 2009
In my opening piece I referenced an onslaught of supply which the market seems to be anticipating to pay for the nationalization of the banking sector around the globe.
The calendar from the Treasury highlights the burden of issuance over the next several weeks. On Thursday the Treasury will announce 20 ...
Posted in Uncategorized | 4 Comments »
Tuesday, January 20th, 2009
I have written reasonably often and without clarity about the exotic trades in 30 year swaps which have given rise to the strange circumstance in which 30 year swap rates trade rich to the 30 year bond. That is not supposed to happen. Ever!
The above captioned blog carried a post ...
Posted in Uncategorized | 2 Comments »
Tuesday, January 20th, 2009
IG 11 opening 2 basis points wider at 216/218.
Posted in Uncategorized | Comments Off on IG 11
Tuesday, January 20th, 2009
In honor of the peaceful passing of power in America I take the liberty as editor of reprising a chunk of what I wrote on Election Day in November. I ask your permission as I indulge myself. Thank you.
If Senator Obama does triumph in what was once viewed as a ...
Posted in Uncategorized | 23 Comments »
Tuesday, January 20th, 2009
Libor US$ Fixing
1/20 1/19 Change
OVERNIGHT 0.14125 0.13625 0.00500
1 WEEK 0.24250 0.24188 0.00062
2 WEEKS 0.28313 0.28625 -0.00312
1 MONTH 0.35250 0.35500 -0.00250
2 MONTH 0.86125 0.87375 -0.01250
3 MONTH 1.12250 1.13250 -0.01000
4 MONTH 1.29125 1.29750 -0.00625
5 MONTH 1.42625 1.43250 -0.00625
6 MONTH 1.54500 1.55625 -0.01125
9 MONTH 1.70875 1.72375 -0.01500
12 MONTH 1.83000 1.85125 -0.02125
Posted in Uncategorized | 1 Comment »
Tuesday, January 20th, 2009
Prices of Treasury coupon securities have staged a rather dramatic retreat in overseas trading and the longest maturities have taken the worst drubbing. In fact, I have not been able to locate a single solid reason for the rout but I surmise that the continued nationalization of the global banking ...
Posted in Uncategorized | Comments Off on Inauguration Day Opening Comments
Tuesday, January 20th, 2009
Some comments from a former MOF official if the rise in the yen continues forwarded to me by a friend of the blog and paid up subscriber.
“When the dollar-yen breaks 85, the Bank of Japan would be
in the market to intervene” to sell the yen, Eisuke Sakakibara,
a former top currency ...
Posted in Uncategorized | 1 Comment »
Monday, January 19th, 2009
I do not link too often but here are a few after a three day weekend.
Denmark in a bailout.
UK bailout.
Royal Bank Scotland expects gigantic loss.
Governments seek to encourage bank lending.
Posted in Uncategorized | Comments Off on Links