Archive for July, 2009

MBS and Swaps

Tuesday, July 14th, 2009

Swaps are about 2 1/2 basis points wider across the curve. Mortgages are unchanged to swaps with light flow thus far. Originators as is their custom have been small sellers. Most others have been sidelined for now.

CIT

Tuesday, July 14th, 2009

CIT bonds are rallying as stories circulate that the troubled lender is negotiation for some form of government assistance. Yesterday I quoted the 6 7/8s of November 2009. I was unable to get a quote on that issue this morning. I am told that there is also a 4 1/8s bond of ...

Corporate Bond Quotes

Tuesday, July 14th, 2009

Corporate bonds of selected financial issuers are opening unchanged to as much as 5 basis points tighter,according to quotes from one dealer. Here are some levels on some of those which are narrowing: BAC 7 5/8 2019 395/385 6 basis points tighter than yesterday morning JPM 630 2018 250/240  7 basis points tighter GS ...

LIBOR

Tuesday, July 14th, 2009

It looks as though LIBOR has found resistance at 0.50 as LIBOR sets higher for second day in a row. Today it sets at 0.51313 versus 0.50938 yesterday. For the uninitiated this is the 3 month Libor rate.

Bond Market Open July 14 2009

Tuesday, July 14th, 2009

Prices of Treasury coupon securities are posting modest losses in overnight trading as the residue of good feeling which developed yesterday regarding equities continued overnight and has not disappeared in early trading stateside. Markets await some key economic data this morning and that will dominate early trading in bonds today. The ...

Bond Market Close July 13 2009.

Monday, July 13th, 2009

Prices of Treasury coupon securities opened stronger but are finishing the day with small mixed changes. The yield on the 2 year note is one basis point lower at 0.89 percent. The yield on the 3 year note is unchanged at 1.40 percent. Longer dated benchmark issues retreated 3 basis  points. ...

Musical Interlude

Monday, July 13th, 2009

Elvis Costello is an acquired taste so he is  not for everyone and probably takes some time to appreciate. I enjoy him and I am currently listening to "when i was cruel". In this instance the lack of caps was in the original.

Swaps and MBS and VOL

Monday, July 13th, 2009

Mortgages are unchanged to swaps today. I  have heard of isolated sales of high coupons by domestic money managers and some buying from end users domiciled on the continent of Asia. Volatility is sliding. The three month at the money option on the 10 year swaption straddle is trading at 596. ...

Corporate Bonds

Monday, July 13th, 2009

The corporate bond market is mostly languid and listless and lackadaisical today. Spreads are for the most part unchanged. The one exception is CIT which has experienced a bout of in flight turbulence. That company can only survive with government guarantees or some source of funding which at the moment is ...

MBS

Monday, July 13th, 2009

Mortgages have opened about unchanged to swaps. There is very little trading thus far.