Archive for October, 2009

JPM New Issue

Tuesday, October 20th, 2009

A staunch friend of the blog forwarded this to me a few minutes ago.  I am not sure of the authorship but suspect it is a dealer: This morning, JPMorgan Chase announced a $1 billion 30-year bullet Trust Preferred Security (TPS), with JPMorgan as sole bookrunner. This is ...

Record Low Yields

Tuesday, October 20th, 2009

I was speaking earlier with a steadfast friend of the blog and I raised the topic of the record low yields attained last year at the height of the meltdown. I had forgotten how low they actually got. On December 16 the 2 year closed at 0.65 percent. On December 18 the 5 ...

IG 13 and Some CDS

Tuesday, October 20th, 2009

- 5yr Snr Bank CDS: BAC 112/117 (-3), CITI 185/195 (-5), JPM 57/62 (-3), WFC 91/96 (-4) - 5yr Snr Broker CDS: GS 100/105 (-5), MS 133/138 (-8) - CDS Index: IG13 95.5/96.5 (unch)

Swaps

Tuesday, October 20th, 2009

Swap spreads are opening tighter  across the yield curve. Two year spreads are a basis point tighter at 36 1/2. Five year spreads are at 36 1/2 and are also a basis point tighter. Ten year spreads are 2 basis points tighter at 16 1/2. Thirty year spreads are also 2 ...

Corporate Bonds

Tuesday, October 20th, 2009

One corporate bond trader reports early demand for that product has spreads tighter by 3 basis point to 5 basis points already this morning. The trader cites stock market gains and favorable earnings.

Brown Brothers on Brazil and Capital Controls

Tuesday, October 20th, 2009

Late yesterday Brazil announced it would impose a 2% tax on foreign purchases of Brazilian bond and stock transactions.  This is particularly aggressive in that the new tax replaces a 1.5% tax that was scrapped last year during the crisis and only was applicable to fixed income purchases.  The new ...

Bond Market Open October 20 2009

Tuesday, October 20th, 2009

Prices of Treasury coupon securities have advanced in overnight trading and have produced a truly parallel shift in the yield curve. Each of the benchmark issues shed a basis point in yield. The overnight session was not one with a single data point to move the market. The Australian central bank released ...

Libor

Tuesday, October 20th, 2009

Today 0.28313 Yesterday 0.28338

Late Night Links

Tuesday, October 20th, 2009

Skirmishes in the tariff war. And capital controls,too. This was interesting. It is a New York Times story about an increase in Medicare premiums. It wanders and discusses several other health reform issues. It reads like an episode of the Twilight Zone or maybe one of those stream of consciousness Seinfeld episodes. ...

UBS Preview of Economic Data Scheduled For OCtober 20 2009

Monday, October 19th, 2009

Preview: UBS est. housing starts 590k/total PPI -0.5%/core PPI +0.1% (1) Housing starts rose 1.5%m/m in August, reflecting a surge in the multi-family component (up 25.3%m/m); the single-family component edged down 3.1%m/m. We forecast a reversal of that pattern in September (forecast for total starts UBSe: -1.3% to 590k, cons: +2.0% ...