Archive for September, 2009

Credit Market Open

Tuesday, September 15th, 2009

- 5yr Life Insurance CDS: GNW 480/510 (-20), HIG 280/300 (-5), LNC 275/295 (-10), MET 265/280 (-10), PRU 250/265 (-5) - 5yr Snr Bank CDS: BAC 135/145 (-3), CITI 203/213 (-20), JPM 65/70 (unch), WFC 75/80 (-1) - 5yr Snr Broker CDS: GS 115/120 (unch), MS 155/165 (-3) - CDS Index: ...

Financial Crisis Now a Footnote

Tuesday, September 15th, 2009

Libor-OIS Spread Narrows to Five-Year Pre Credit-Crisis Average 2009-09-15 11:27:26.598 GMT By Gavin Finch Sept. 15 (Bloomberg) -- The Libor-OIS spread fell to the average level in the five years before the credit crisis began after central banks and governments acted to limit the damage sparked by the failure of Lehman Brothers Holdings Inc. The spread, a ...

SFEF

Tuesday, September 15th, 2009

The book for the aforementioned bond deal is $ 10 billion. Price talk is mid swaps plus 18.

Some Morning Reading

Tuesday, September 15th, 2009

Bank of England head honcho signals that it might reduce the rate it pays on deposits (in order that banks might lend those funds to consumers). And the WSJ is reporting this morning that in spite of some support for an early end to Open Market Desk purchases of MBS and ...

Libor

Tuesday, September 15th, 2009

Today  0.29338 Yesterday   0.29500

Bond Market Open September 15 2009

Tuesday, September 15th, 2009

Prices of treasury coupon securities have registered a very modest rebound from the drubbing which they experienced yesterday. The mighty greenback is still trembling versus the Euro and has not done much versus the Yen but at this stage it is refraining from establishing new lows. Equity markets are mixed but the ...

Yellen Speaks

Monday, September 14th, 2009

14:50    *FED'S YELLEN SAYS FORECLOSURES SHOW `NO SIGN OF TURNING AROUND' 14:50    *FED'S YELLEN SAYS TIGHT CREDIT IMPEDING ECONOMIC GROWTH 14:50    *FED'S YELLEN SAYS ECONOMY HAS `ENORMOUS AMOUNT OF SLACK' 14:50    *FED'S YELLEN SAYS CONSUMER SPENDING IS `BOTTOMING OUT' 14:50    *YELLEN SAYS UNEMPLOYMENT WILL `REMAIN ELEVATED' FOR A FEW ...

Bond Market Close September 14 2009

Monday, September 14th, 2009

Prices of Treasury coupon securities are tumbling today in a low volume environment. And if you owned a security in the belly of the curve the carnage was worse,relatively. The yield on the 2 year note increased a basis point to 0.91 percent.The yield on the 3 year note edged higher ...

SWAPS MBS VOL

Monday, September 14th, 2009

Mortgages are about unchanged to swaps today. One trader with whom I speak points out that one year/10 year swaption vol has decline from 164 to 142 since August 7th. In that same period MBS has cheapened. With vol declining MBS should be improving (as the owner of the MBS is ...

Chris Low of FTN on the Tire Tariff Tiff

Monday, September 14th, 2009

Apparently the Chinese government is not happy about press reports of the escalating US - China trade war after the weekend’s decision to investigate the US car and chicken industries for possible dumping, which would allow the imposition of retaliatory tariffs after President Obama slapped a tax of up to ...