Archive for November, 2013

Corporate Bonds

Tuesday, November 5th, 2013

Corporate bond spreads unchanged today. Demand remains quite robust and investors gobble up new issues. Spreads remain close to the record tights of May (before the taper talk induced sell off and liquidation). Bloomberg First Word reports that eight issuers came to market yesterday with neatly $ 8 billion of ...

Twitter

Tuesday, November 5th, 2013

Twitter will price its IPO later this week and media reports are that the deal is very hot. Apparently the deal will price rich to both Facebook and Linked In. That is very expensive as each of those entities trades times revenue and not as a multiple of earnings. Since I ...

November 05 2013 Bond market Opening

Tuesday, November 5th, 2013

Prices of Treasury coupon securities are sliding in overnight trading . Dealers report chunky selling of TY contract out of the chute when the Japanese markets opened and then mixed flows in the belly of the curve from the central bank community. The RBA left rates unchanged and that will ...

Forever Young

Monday, November 4th, 2013

The WSJ is running a story that at this early juncture in the ObamaCare rollout it appears that a disproportionate chunk of enrollees are older riskier subjects and the young are not storming the ramparts to sign up for this latest manifestation of public largesse. That is not exactly the ...

Administrative Note

Monday, November 4th, 2013

I posted early this morning and then connectivity issues kept me off the world wide web the remainder of the day. For the record I retired on September 30 and since I am obsessed with the fixed income markets I decided to re inaugurate the blog which I had so much ...

Bullard Bloviating on CNBC

Monday, November 4th, 2013

Bloomberg Headlines: BFW 11/04 12:06 *FED’S BULLARD SEES ‘CUMULATIVE PROGRESS’ IN LABOR MARKET BFW 11/04 12:05 *FED'S BULLARD SAYS TAPERING IS DATA DEPENDENT BN 11/04 12:03 *ST. LOUIS FED PRESIDENT BULLARD SPEAKS ON CNBC TELEVISION  

Monday Morning Miscellany and Musings

Monday, November 4th, 2013

Prices of Treasury coupon securities are marginally higher in an extremely quiet overnight trading session. One dealer reported Asian buyers in the belly and then subsequent profit taking in the same sector by other Asian clients. European bond markets are mixed with Bund yields lower while UK, Spain and Italy ...

Sunday Night Miscellany

Sunday, November 3rd, 2013

The always entertaining Dallas Fed President Fisher spoke in Australia overnight. He did not address QE in the text but did have some harsh words for both the Executive Branch and the Legislative branch of our government. He notes that the Federal Reserve has done yeoman like work the last ...

Treasury and Corporate Bond Update

Friday, November 1st, 2013

The US Treasury market continues to move lower in price terms and since the inverse relationship between price and yield appears to be holding yields are higher. The 10 year Treasury did not hold at 2.60 and the next level of support would appear to be around 2.66. I think ...

Swap Spreads

Friday, November 1st, 2013

Swap traders report a very quiet market today. One trader noted that today marked the first day of full implementation  ofDodd Frank mandated SEF trading between dealers. Client trading will go that route in several months. Spreads have exhibited little movement though one trader said he had observed the unwinding ...