Archive for March, 2009
Tuesday, March 24th, 2009
The Federal Reserve and the Treasury issued a joint statement at 430PM New York time about the role of the Federal Reserve in the ongoing credit crisis.
I am surprised that I have not seen any comments on this. JPMorgan economists entitled their email "The 2009 Treasury-Fed Accord" which is a ...
Posted in Uncategorized | 7 Comments »
Monday, March 23rd, 2009
Prices of Treasury coupon securities slumped today as the details of the Obama Administration toxic asset relief plan engendered a stock market rally which then diminished the luster and allure of Treasury bonds. The animal spirits raced at Broad and Wall at least for today.
Supply remains an issue for the ...
Posted in Uncategorized | 3 Comments »
Monday, March 23rd, 2009
Mortgages are several ticks weaker versus swaps. Higher coupons are performing better than the 4 s and 4 1/2s. As an example, 6 1/2s are up 2/32 and the 4 1/2s are down 2/32.There is concern that there will be gigantic production of 4s and 4 1/2s going forward and ...
Posted in Uncategorized | Comments Off on Mortgages and Swaps
Monday, March 23rd, 2009
In the world of corporate bonds it has been an active day of issuance by corporate Treasurers.
Time Warner has a two pronged offering of $1 billion 5 year notes and $1 billion 10 year notes. The price talk is +595 and + 570,respectively. That would represent a concession of 75 ...
Posted in Uncategorized | 5 Comments »
Monday, March 23rd, 2009
Cash CMBS are screaming tighter. One trader noted that stuff was over 100 basis points tighter.
Posted in Uncategorized | Comments Off on CMBS
Monday, March 23rd, 2009
Swap spreads are tighter across the curve. Two year spreads are tighter by 2 basis points at 62 1/4. Five year spreads are 3 basis points tighter at 66 basis points. Ten year spreads are 3/4 basis point tigher at 30 1/4. Thirty year spreads are one basis points tighter ...
Posted in Uncategorized | 13 Comments »
Monday, March 23rd, 2009
5yr Snr Bank CDS: BAC 292/302 (-17), CITI 525/550 (-20), JPM 170/180 (-10), WFC 208/218 (-12)
- 5yr Snr Broker CDS: GS 255/265 (-15), MS 355/365 (-20)
- CDS Index: IG11 228.5/230 (-8.5)
Posted in Uncategorized | Comments Off on IG 11 (And Some Financial Name CDS)
Monday, March 23rd, 2009
Here is an excerpt from a morning note to customers by David Ader and Ian Lyngen of RBS Greenwich Capital. They think that the FOMC purchases in total will soak up about $1 trillion of supply. That is in 10 year equivalents.
They also anticipate that the aforementioned purchases will spark ...
Posted in Uncategorized | 6 Comments »
Monday, March 23rd, 2009
Prices of Treasury coupon securities are posting small, mixed and seemingly random changes in overnight trading. The yield on the 2 year note has climbed one basis point to 0.87 percent. The yield on the 3 year note is unchanged at 1.22 percent. The yield on the 5 year has ...
Posted in Uncategorized | 4 Comments »
Sunday, March 22nd, 2009
A faithful reader and frequent commenter (always cogent) raised several points on Friday regarding the results of the FOMC to launch the ICBM of Quantitative Ease into the market. Reader Greg posits that with the Fed setting the price of government bonds that the functioning of the market will be ...
Posted in Uncategorized | 21 Comments »