Archive for January, 2014

January 15 2014

Wednesday, January 15th, 2014

Prices of Treasury coupon securities have registered very marginal losses in overseas trading. Dealers report buying  of high grade spread product in the 3 year to 5 year sector by real money. There was also real money buyers of the Long End and some real money sellers of 10s. The yield ...

Corporate Bond Issuance Begins In Asia For Tomorrow

Tuesday, January 14th, 2014

US $ issuance of corporate bonds getting a head start on tomorrow with issuance just announced for two (very obscure) names. Via Bloomberg: Bank of Baroda Markets 5.5-Year Dollar Bonds at About T+360 Bps 2014-01-15 02:39:04.412 GMT By Tanya Angerer Jan. 15 (Bloomberg) -- Person familiar with the matter says. * Issuer: Bank of Baroda * Tenor: 5.5-yr * ...

Bubbles Everywhere

Tuesday, January 14th, 2014

One of my favorite blogs is Marginal Revolution authored by Tyler Cowen et alia at George Mason University in the Commonwealth of Virginia. He writes interesting articles on topics one does not  often see elsewhere. He also gave me one of my first endorsements in my previous blogging incarnation. He has ...

Non Prime ABS Issuance

Tuesday, January 14th, 2014

I wrote about this in a post recently entitled back to the future. One could argue that QE is encouraging excessive risk taking. Via Bloomberg News: By Pham-Duy Nguyen Jan. 14 (Bloomberg) -- May price this week. $1b+. Bookrunners Citi (str), Barclays, Credit Agricole. Co-managers TBD. May be rated by Moody’s, S&P. * A-1a  1.31Y, Rated ...

Q4 GDP Revisions

Tuesday, January 14th, 2014

Action Economics is a private forecasting concern which I have followed for a number of years. Economic forecasting is a difficult business but I think the key there is presenting your opinion in a logical and cogent manner. Action Economics does that well. Forecasters there have revised up there forecast ...

Treasury Update

Tuesday, January 14th, 2014

Treasury traders with whom I spoke this morning are in a sell the rally mode. There are several factors at work here. One trader noted that in his opinion much of the recent rally was short covering and that is (he hopes ) over. Corporate supply has tended to favor ...

Frontrunning Fannie and Freddie

Tuesday, January 14th, 2014

Reuters is carrying a story about traders at dealer shops front running orders from FNMA and Freddie Mac in the swap market. The story needs some fleshing out as it makes an assertion that the dealer(s) would have different ring tones for the GSE clients and would know that they ...

Not Thanksgiving Turkey

Tuesday, January 14th, 2014

The Turkish Lira is trading at what looks like all time lows versus the dollar. I spoke with a fully paid up subscriber who is an FX market participant. He notes that the country is suffering through an ongoing political crisis in concert with a current account deficit. Banks in ...

JPMorgan Survey

Tuesday, January 14th, 2014

Via Bloomberg First Word: RATES: Longs and Shorts Both Rise in Latest Survey, JPM Says 2014-01-14 12:14:04.495 GMT By Robert Elson Jan. 14 (Bloomberg) -- The JPMorgan Treasury Client Survey for the week ended Jan 13 vs week ended Jan 6. * Longs at 19 vs 13 * Neutrals 64 vs 72 * Shorts 17 vs 15 * Net ...

January 14 2014 Opening

Tuesday, January 14th, 2014

Prices of Treasury coupon securities have passed the evening erasing some of the gains achieved yesterday. Equity futures for the US are delivering a wonderful imitation of a moribund feline striking the pavement after being dropped from on high. European equities are all lower and in Japan the Nikkei suffered ...