IG 13 Et Alia
Thursday, October 8th, 2009- 5yr Snr Bank CDS: BAC 111/116 (-3), CITI 205/215 (-5), JPM 63/68 (-2), WFC 83/88 (-1) - 5yr Snr Broker CDS: GS 107/112 (-5), MS 133/143 (-7) - CDS Index: IG13 101/102 (-1)
Archive for October, 2009
- 5yr Snr Bank CDS: BAC 111/116 (-3), CITI 205/215 (-5), JPM 63/68 (-2), WFC 83/88 (-1) - 5yr Snr Broker CDS: GS 107/112 (-5), MS 133/143 (-7) - CDS Index: IG13 101/102 (-1)
Swaps
Thursday, October 8th, 2009Swap spreads are tighter across the curve today. Each of the benchmarks has narrowed by a basis point. The 2 year spread stands at 34. Five year spreads are at 36. Ten year spreads are 17 and 30 year spreads are NEGATIVE 10.
Extension
Thursday, October 8th, 2009Here is some recent data on the move from money funds to the belly of the bond curve: Mutual fund flows- from money funds and stocks into bonds. Week ending 9/30/09. Money market: $-17.4 bil. Stock funds: $ -4.2 bil. Bond funds $ +9.1 bil. Source- Investment Company Institute
Toaster Metaphor
Thursday, October 8th, 2009Last night in my long closing piece I wrote that I thought that everyone was in the pool (bond market ) and that someone would soon saunter by the pool and drop a plugged in toaster in the water. One of the frequent commenters at this blog uses the name Farah ...
Bond Market Open October 8 2009
Thursday, October 8th, 2009Prices of Treasury coupon securities are posting small mixed changes in overnight trading. The price action is counterintuitive with the 10 year and 30 year essentially unchanged ( ahead of the bond auction later today) while the shorter benchmark issues experienced small losses. So the curve is a tad flatter. The ...
Swedish Krona and Latvia
Wednesday, October 7th, 2009Brown Brothers analysts in an end of day email wrote about some problems for Sweden,its banks and the krona which derive from the woes of Latvia. Here is an excerpt: "The Swedish krona is softer, hurt by news Latvia may limit homeowner liability to the value of homeowner collateral. That news ...
Latvia Problems
Wednesday, October 7th, 2009Latvia had a failed bond auction and there is talk of devaluation of the currency as per the WSJ.
Bond Market Close October 07 2009
Wednesday, October 7th, 2009Prices of Treasury coupon securities surged today and, since the inverse relationship between price and yield is intact,yields fell. The reason for the so called local trade or day trade can be placed at the feet of the stories about the FX market. Non dollar currencies improve and authorities in those ...
Swap Spreads and Corporates
Wednesday, October 7th, 2009Swap spreads experienced very small changes today and for the most part edged tighter. Two year spreads are 1/2 basis point narrower at 33 1/2, Five year spreads are a solitary basis point narrower at 36 1/2. Ten year spreads are unchanged at 17. Thirty year spreads are 1/2 basis ...