The Rain in Spain
Monday, January 19th, 2009S and P lowers credit rating of Spain.
Archive for January, 2009
Some Closing Comments January 16 2009
Friday, January 16th, 2009Prices of Treasury coupon securities are finishing the truncated holiday session with mixed changes. Today the wings of the butterfly glittered while the belly of the curve languished.The yield on the 2 year note slipped a basis point to 0.70 percent. The yield on the 3 year note is unchanged ...
FDIC Bonds
Friday, January 16th, 2009As part of the announcement of the bailout of BOA and its troubled Merrill assets the FDIC announced that it would guarantee bank debt beyond the current June 30 2012 maturity. The issuance must be collateralized and the commissars must judge that it supports consumer lending.The 10 year is the ...
Administrative Note
Friday, January 16th, 2009Treasury market closes at 200PM in advance of the Martin Luther King holiday Monday.
Swaps and MBS
Friday, January 16th, 2009Swap spreads are collapsing today as the government bailout of BOA is a benevolent action for those who hold risky assets. It also favors the riskier assets in that mushrooming issuance will tighten spreads as the supply of government bonds grows more abundant.Two year swap spreads are tighter by 9 ...
Libor
Friday, January 16th, 2009Libor US$ Fixing 1/16 1/15 Change OVERNIGHT 0.13625 0.11750 0.01875 1 WEEK 0.24313 0.24125 0.00188 2 WEEKS 0.28875 0.27500 0.01375 1 MONTH 0.35938 0.33375 0.02563 2 MONTH 0.88250 0.84125 0.04125 3 MONTH 1.14250 1.08563 0.05687 4 MONTH 1.31500 1.24250 0.07250 5 MONTH 1.45375 1.36875 0.08500 6 MONTH 1.58875 1.50125 0.08750 9 MONTH 1.76000 1.66000 0.10000 12 MONTH 1.89000 1.77125 0.11875
Some Opening Comments January 16 2009
Friday, January 16th, 2009Prices of Treasury coupon securities tumbled in response to the US government bailout of Bank of America. The United States Government will inject $ 20 billion into the company and will provide various guarantees for $118 billion of assets which BOA acquired in the deal with Merrill Lynch .When I ...
Groundhog Day
Thursday, January 15th, 2009It was a great movie with Bill Murray and a woman who is ubiquitous in some cosmetic commercial and it spoke of the transformative power of love. There is no love in the bond market or stock market for financial names and the rout in financial paper is leading stocks ...
Reminiscences of Things Past
Thursday, January 15th, 2009A paid up subscriber and friend of the blog passed along to me a note that the Treasury had called the 13 1/4 May 2014 bond. Obviously, with that coupon the taxpayers will benefit greatly from the call and subsequent refinancing. I post this because I recall that bond as the ...