Archive for February, 2014
Monday, February 24th, 2014
The WSJ has an exceedingly long article on working conditions at the world's largest bond fund, PIMCO. The story describes the fractured and contentious relationship between founder Bill Gross and his soon to be departed number two Mohamed El Erian. Wne one reads a story such as this it is ...
Posted in Uncategorized | Comments Off on Micromanaging PIMCO
Monday, February 24th, 2014
This is the guidance from Cisco via Bloomberg:
18mo L+5-7
3yr fix T+45a
3yr frn L Equiv
5yr fix T+65a
5yr frn L Equiv
7yr 80a
10yr 95a
This is 5 basis points to 15 basis points tighter than the initial price talk.
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Monday, February 24th, 2014
Swap spreads are tighter by about a basis point in the belly of the curve today. Dealers anticipate a fairly active issuance calendar this week and expectations of swapping of that flow has dealers in received positions. I have heard of some prop desk paying in the 10 year sector.
Mortgages ...
Posted in Uncategorized | Comments Off on Swap Spreads and MBS
Monday, February 24th, 2014
The corporate bond market remains quite firm with spreads hovering close to the lowest levels observed since man first learned to walk erect. My principal contact in this sector notes that while the market is well bid the pace of tightening has slowed from a gallop to a trot. He ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Monday, February 24th, 2014
The Treasury market is a very placid fixed income market today. Yields are rising but quite gently as evidenced by the 10 year note on which the 2.744 yield is 1.6 basis points higher than when I wrote at 530AM this morning. The curve has a flattening bias as 5s ...
Posted in Uncategorized | Comments Off on Treasury market Update
Monday, February 24th, 2014
A former colleague of mine who plies his trade as a futures salesman notes that in the options expirations process last week very few puts were rolled. He thinks that participants are anticipating an uneventful week and lack protection against higher yields. He thinks that if the melting ice begins ...
Posted in Uncategorized | Comments Off on Optionality
Monday, February 24th, 2014
The aforementioned technology company just announced a multi tranche corporate bond deal. No size or price talk at this time.
Via Bloomberg:
Cisco Systems, Inc. B'Mark A1/AA- 7 part
18 mo frn, 3 yr fxd & frn,5 yr fxd and frn, 7,10 yr
asap baml,barc,db,jpm(act) ...
Posted in Uncategorized | Comments Off on Cisco
Monday, February 24th, 2014
Courtesy of David Ader at CRT:
OVERNIGHT FLOWS: Treasuries were little changed overnight with no discernible direction resulting from the G-20 or the improving German IFO release. Overnight volumes were on the strong side for a Monday early session with cash trading at 103% of the 10-day moving-average, while TY came ...
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Monday, February 24th, 2014
This is a comprehensive article on the state of the primary dealer business from Bloomberg. I spent the preponderance of my career working as a salesman or a trader at primary dealers or for firms aspiring to be primary dealers. The value of that franchise has eroded over the years ...
Posted in Uncategorized | 3 Comments »
Monday, February 24th, 2014
Mark Chandler at Brown Brothers opines on Ukraine:
The removal of Yanukovych in Ukraine has seen a continued relief rally with 10-year Ukraine yields dropping a little more than 100 bp to around 8.9%. The 5-year CDS has also fallen 185 bp to about 940. Both are now back to late-January ...
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