Archive for January, 2014

Midafternoon Miscellany

Wednesday, January 15th, 2014

The Treasury market has rallied over the course of the afternoon and is still lower on the day but quite marginally so. The curve flattened from early in the morning but has stabilized since and the recovery is uniform across the curve (beyond 5 year point). Several participants with whom ...

Not Exactly an Odd Lot

Wednesday, January 15th, 2014

Here are the details on the Bank America multi tranche deal pricing. Via Bloomberg: Bank of America 6.125 bln 4 part launched  5-yr Fixed:  $1.25Bn at T+ 87 5-yr FRN:    $400mm  at 3ML+ 78 10-yr:        $2.5Bn at T+ 125 30-yr:        $2.0Bn at T+ 120 B

More Stone McCarthy

Wednesday, January 15th, 2014

My previous post was a duration note on the short position reflected in the Stone McCarthy Survey. Bloomberg News is also carrying a story about this survey and this report notes that portfolio allocations to corporate bonds is just shy of an all time high. Via Bloomberg News: IG CREDIT: Allocations to ...

Stone McCarthy Duration Survey

Wednesday, January 15th, 2014

Stone McCarthy is an economics forecasting and research firm which runs a duration survey similar to the JPMorgan  survey I publish here every Tuesday. Courtesy of David Ader at CRT Capital I have the results of the latest survey and it is 96.6 percent. According to Ader' s note that ...

Swaps

Wednesday, January 15th, 2014

Swap spreads are wider today but have narrowed somewhat from their widest levels. The 5 year spread traded as wide as 10.25 but has since narrowed to 9.50. There is an interesting dynamic tension at work in the swap market. On the one side you have fast money traders actively ...

B of A Issuance

Wednesday, January 15th, 2014

Via Bloomberg : Bank of America Corporation B'Mark Baa2/A-  3 part 5-year Re-opening (BAC 2.6 1/19) / 10-year / 30-year asap ipt  95a/ 140a/ 130a IPT  equals Initial Price Talk for the unintiated

Treasury Market: Unwinding the Unwind

Wednesday, January 15th, 2014

The euphoria which suffused the fixed income market on Friday is rapidly fading. Moments before the labor report printed on Friday the 10 year changed hands at 2.95 percent after bouncing off the 3 percent level earlier last week. We rallied to 2.82 so at the current 2.90 we have ...

MBS

Wednesday, January 15th, 2014

Mortgages are quiet today after finishing several ticks wider to Treasuries yesterday.. One dealer noted that the product is in bit of a no man's land as the market makes up its mind about the near term course of interest rates. The same trader noted that for now clients were ...

Corporate Issuance

Wednesday, January 15th, 2014

These deals are in the pipeline already and waiting to price sometime today. And a thanks to my friends at Bloomberg First Word for the info: $b  KfW (KFW) Aaa/AAA  Barc/GS/MS Global 5.25Y    MS +10 area $tbd  Bank of Baroda (BOBIN)  Baa3/na/BBB- 144A/Reg-S 5.5Y +330 area    BAML/Barc/C/JPM/SCB $tbd  Korea National Oil (KOROIL) A1/A+  144A/Reg-S $m  ...

World Bank View on Global Growth

Wednesday, January 15th, 2014

This was out yesterday and I did not see it. The World Bank is forecasting that the global economy is finally emerging from the financial torpor which followed the financial crisis and the Bank forecast global growth of 3.2 percent in 2014 versus 2.4 percent in 2013.