Archive for March, 2014
Monday, March 31st, 2014
Via Mark Chandler of Brown Brothers:
n contrast, the ECB is under pressure to provide additional accommodation. This is understandable given weak money supply growth, a continued contraction in lending, an elevated EONIA (more than twice the effective Fed funds rate), and an economic recovery that remains (as Draghi says) weak, ...
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Monday, March 31st, 2014
On Friday I posted a long screed attacking ObamaCare and then appended to that post work from economists at FTN Financial which posited that the Affordable Care Act is diverting spending from department stores to health insurance spending. The 538 Blog ( the new expanded Nate Silver blog in his ...
Posted in Uncategorized | 3 Comments »
Monday, March 31st, 2014
Prices of Treasury coupon securities are taking a battering in overnight trading. The extent of the sell off is troubling as the economic backdrop is sanguine for fixed income. In Japan Industrial Production in February posted a sharp 2.3 percent decline. The paid pundits and prognosticators who for profit predict ...
Posted in Uncategorized | Comments Off on March 31 2014 Opening
Sunday, March 30th, 2014
Via Reuters:
ECB's Weidmann says euro zone not in deflationary cycle
By Patrick Graham
BERLIN Sat Mar 29, 2014 8:49am EDT
(Reuters) - The euro zone is not in a deflationary cycle and the European Central Bank (ECB) should not overreact to a slowdown in inflation caused largely by cyclical factors which should prove ...
Posted in Uncategorized | Comments Off on Bundesbank’s Weidman Says Europe Not in Deflationary Spiral
Sunday, March 30th, 2014
Via FT:
Bad loan writedowns soar at China banks
By Simon Rabinovitch in Shanghai
China’s biggest banks more than doubled the level of bad loans they wrote off last year, in a sign that financial strains are mounting as growth in the world’s second-largest economy slows.
The five biggest Chinese banks, which account for ...
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Saturday, March 29th, 2014
I just found this site called House of Debt and the lead post at that site on income and wealth inequality is rather provocative. It seems that it is not the top 1 percent who have accrued all the gains in wealth but the top 0.1 percent, the 99.9 percentile. ...
Posted in Uncategorized | Comments Off on Mega Wealth
Friday, March 28th, 2014
If you are keeping score of mortgages at home and I know you are then you will be glad to know that both 30 year and 15 year paper is 1 to 1+ tighter to Treasuries. Client flow in this market is minimal,too.
Posted in Uncategorized | Comments Off on MBS
Friday, March 28th, 2014
Via Bloomberg:
IG CREDIT: Weekly Volume Falls for Third Consecutive Week
2014-03-28 14:53:22.216 GMT
By Lisa Loray
March 28 (Bloomberg) -- Issuance fell for a third
consecutive week, with 13 issuers pricing $17.425b in 20
tranches for the week ending March 28
* Issuance fell 9.5% from the week prior when $19.25b priced
from 14 issuers in 21 ...
Posted in Uncategorized | Comments Off on Corporate Bond Issuance This Week
Friday, March 28th, 2014
The Treasury market sell off is picking up steam. Volumes are rather light and this appears to me to be a street led sell off. One dealer made the point that supply is over and that supply was a liquidity event for those who needed bonds. Now there is no ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Friday, March 28th, 2014
I have to preface this little post with the remark that I am unabashedly opposed to most of President Obama's progressive makeover of America ( a fundamental transformation to coin a phrase) and I have expressed that point of view several times here on the blog. I am particularly opposed ...
Posted in Uncategorized | 12 Comments »