Archive for February, 2009

MBS

Wednesday, February 11th, 2009

Mortgages are about 2 ticks wider to swaps. Originators have been rather heavy sellers. One deal wrote that spreads should be under a bit of pressure for a bit as origination selling should remain chunky. The same dealer also felt that most investors are about where they wanted to be and ...

Spread Product

Wednesday, February 11th, 2009

Spreads  recovering the messy widening of yesterday which resulted from the non plan proposal of Geithner. In days prior to his speech spreads had narrrowed as participants hoped for some sort of guarantee or explicit governmental support. So some of those losses are being recouped this morning. Two year swap spreads are ...

HSBC on the Trade Balance

Wednesday, February 11th, 2009

  HSBC: US Dec Trade - Exports and Imports Down 24% from Peak      Although the Dec trade deficit did not narrow as much as the    market expected (consensus -$35.7BN), the outcome of -$39.9BN    was still substantially lower than the -$57-59BN deficits seen  between Aug to Oct. Nominal exports fell 6% after -6% in ...

IG 11

Wednesday, February 11th, 2009

IG 11 opening 2 basis points narrower at 193 1/2  /  195 1/2.

Libor

Wednesday, February 11th, 2009

Libor US$ Fixing                  2/11         2/10      Change OVERNIGHT     0.30125      0.30500    -0.00375 1 WEEK        0.35250      0.35625    -0.00375 2 WEEKS       0.40375      0.40250     0.00125 1 MONTH       0.45250      0.44688     0.00562 2 MONTH       0.94438    ...

Some Opening Comments Feb 11 2009

Wednesday, February 11th, 2009

Prices of Treasury coupon securities edged higher in overnight trading with marginal gains for benchmark securities of 5 years and less and modestly greater gains for the benchmark 10 year and 30 year. The yield on the 2 year note declined a basis point to 0.88 percent. The yield on ...

China

Wednesday, February 11th, 2009

Polonius had it right when he intoned to Laertes that he should "neither a borrower or a lender be ". The US is deep in debt  to China and against that background the musing of this former Chinese official are a bit scary. He suggests that China should have some guarantee ...

JPMorgan on Geithner and Bernanke…….Apologies for the Small Font But It Is a Good Read

Tuesday, February 10th, 2009

Treasury Secretary Geithner's announcement on the next steps for the financial bail-out was a major disappointment.  The new plan discussed some of the ideas that have been floated in the media over recent days, and delivered some cosmetic re-labelling of existing programs, but many of the fundamental questions that former ...

Close February 10 2009

Tuesday, February 10th, 2009

Prices of Treasury coupon securities roared higher today as the firm tone observed during the overseas prevailed in early New York trading and then turn decidedly robust as the markets decided that “there was no there there” in the much pined for financial rescue package of the Obama Administration. The ...

Agency and Swaps

Tuesday, February 10th, 2009

Agency spreads are suffering the slings and arrows of outrageous fortune today. Last week those very spreads had rallied on the prospect of full throated nationalization, guarantee or some other explicit backstopping mechanism. But alas the saddest words of tongue or pen are those that might have been. The Obama Administration ...