Archive for December, 2013
Monday, December 16th, 2013
Corporate bond spreads are unchanged to a tad tighter. Yieldy paper is still in demand and one salesman noted particular interest in bank paper and TMT paper. There is a Kroger deal today and my contact thought that would be the last meaningful issue of the year. I have been ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Monday, December 16th, 2013
My source in Europe reports that 3 month Euribor jumped 0.7 basis points to 29 basis points . One week Euribor had the largest increase spiking 1.4 basis points. The interesting point there is that one week does not take you over year end.
Initially there was little reaction but subsequently ...
Posted in Uncategorized | Comments Off on Short End Europe
Monday, December 16th, 2013
I did not mention this in my overly long opening post but short rates in Europe have been gliding higher over the last week or so as banks repay LTROs. The Euribor rate climbed each day last week (slightly more than 3 basis points over the week) and some participants ...
Posted in Uncategorized | Comments Off on Year End Illiquidity In Europe?
Monday, December 16th, 2013
Prices of Treasury coupon securities have registered robust gains in overnight trading. The market is off its best levels as participants respond to a variety of data releases around the globe. In Asia PMI in China disappointed and failed to meet the rosy predictions of prognosticators. The number printed at ...
Posted in Uncategorized | Comments Off on December 16 2013 Opening
Sunday, December 15th, 2013
Wipeout was a very popular instrumental song by the California surfing sound band the Safaris. It contained a very long drum solo which would fire up young baby boomers at high school dances in the mid 1960s.
Fast forward to the 21st century 50 years later and a Bloomberg news story ...
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Sunday, December 15th, 2013
The WSJ is carrying another Hilsenrath coauthored article which discusses what the FOMC might do at its upcoming conclave. The authors note that employment is at levels which are significantly lower today than the central bank expected when it launched the QE Infinity program in September 2012. The economy is ...
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Sunday, December 15th, 2013
The WSJ leads this evening with an article on the parsimonious returns available in corporate bonds. Spreads are at their tightest levels since 2007 (how did that work out?) and junk bond issuance is about to set a record but buyers keep buying and I think I have chronicled that ...
Posted in Uncategorized | Comments Off on Corporate Bond Mania
Saturday, December 14th, 2013
Analysts at Merrill Lynch anticipate a rotation out of equities and into bonds. The logic is that the prodigious stock market rally has rehabilitated the funding levels of many previously underfunded pension funds. Those funds can lock in the gains by reducing equity exposure and rotating into fixed income.
Via Merrill ...
Posted in Uncategorized | Comments Off on Reverse Rotation
Friday, December 13th, 2013
Making the rounds of bond market participants I have found that it was one very quiet day. I have heard of modest selling by real money in the belly of the curve and little else.
The focus today is on the upcoming FOMC meeting and the taper or no taper decision. ...
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Friday, December 13th, 2013
Corporate bonds are very well bid in a somnolent market place. Issuance has subsided and participants with whom I spoke expect that between now and year end issuance will remain sparse and will be of the one off variety by non household names. In an earlier post on the Treasury ...
Posted in Uncategorized | Comments Off on Corporate Bonds and MBS and TIPS