CIT
Wednesday, July 15th, 2009Negotiations between CIT and the government have broken down and place that company's survival in jeopardy.
Archive for July, 2009
Negotiations between CIT and the government have broken down and place that company's survival in jeopardy.
Bond Market Close July 15 2009
Wednesday, July 15th, 2009Prices of treasury coupon securities plummeted today and the yield curve steepened significantly as a reborn appetite for risk dulled demand for risk free Treasury assets. The increased appetite for risk is exemplified by the surging equity market as well as the resumption of spread tightening for investment grade corporate ...
Swaps and MBS and VOL
Wednesday, July 15th, 2009There was paying in swaps today which resulted from mortgage portfolio convexity concerns. Once again I reiterate that there was paying but it never reached the throw out the baby with the bathwater state of several weeks ago. Two year swap spreads widened 1/4 basis point to 45 1/4. Three year ...
Corporate Bonds
Wednesday, July 15th, 2009Corporate bonds had treaded water for most of the last four weeks and many bonds experienced little movement. At times the tone would feel better or worse but in many instances the quoted levels never changed. That changed today and quotes moved such that what was once the offered side is ...
Bond Market: Midday Meltdown
Wednesday, July 15th, 2009It is an orderly debacle in the fixed income market. Swap spreads are leaking wider as convexity payers emerge. Two year spreads are a basis point wider at 46. Five year spreads are 1 1/4 basis points wider at 49 1/4. Ten year spreads are 3 basis points wider at 24 ...
Goldman Sachs: New Issue
Wednesday, July 15th, 2009NEW YORK, July 15 (Reuters) - Goldman Sachs Group (GS.N) on Wednesday launched a self-led sale of $1 billion nonguaranteed notes, according to IFR. The notes are expected to yield 212.5 basis points more than Treasuries, with pricing later on Wednesday, said IFR, a Thomson Reuters Service. The sale comes a day ...
Bond Market: More Curve Musings
Wednesday, July 15th, 2009I just conversed with a bond trader about the stickiness of 10s/30s. He noted that the spread had been as wide as 92.5 basis points this morning and he has seen from that point better buying of the bond by real money. Most of the buying has been weighted trades ...
Curve Musings
Wednesday, July 15th, 2009The ever effervescent stock market bubbles higher and dampens enthusiasm for bonds. Economic data released this morning have added to the pall in the bond market. Industrial Production declined less than expected and the Empire Survey of manufacturing in the New York area has clawed its way back (nearly) to zero. The ...
Reflation Trade
Wednesday, July 15th, 2009The TIPS market is exploding. In part it is sponsored by the Federal Reserve which will purchase TIPS tomorrow. On the other hand the break even on the 10 year has exploded 20 basis points since the close Monday night and the Federal Reserve purchase can not explain all of that ...
Swaps ad MBS
Wednesday, July 15th, 2009Swap spreads are opening mostly wider this morning. Two year spreads are flat at 45. Five year spreads are a basis point wider at 49.Ten year spreads are 2 basis points wider at 23 1/2. Thirty year spreads are a basis point less inverted at NEGATIVE 21. Mortgages are outperforming swaps by ...