Archive for March, 2014
Saturday, March 8th, 2014
This is a rather lengthy article from private intelligence and analysis firm Stratfor. It delves into the process of imposing trade sanctions on Russia and what is necessary to make the action meaningful.
Via Stratfor:
Summary
As the standoff between Russia and the West continues over Ukraine, the United States is considering enacting ...
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Friday, March 7th, 2014
The Wall Street Journal has a long story on the tired bull market in equities. The article notes that stocks are not cheap anymore and the future capital appreciation will need the support of growing corporate profits. The equity market needs to shift to a market supported by company fundamentals ...
Posted in Uncategorized | Comments Off on Toro Muy Cansado
Friday, March 7th, 2014
Earlier today I wrote a piece entitled "Asset Allocators " and described the demand for bonds which would flow from pension funds and insurance companies next week in the refunding process. Some of those end user clients have huge gains in their equity portfolio and on any back up in ...
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Friday, March 7th, 2014
I have not read this because it is hot off the press.
Posted in Uncategorized | Comments Off on Dudley Text
Friday, March 7th, 2014
I watch 10 year US versus 10 year Germany and that spread is out to 114 basis points. I have lost the ability to chart as I have no Bloomberg but that spread has hovered around 104/105 as recently as February 28. I just spoke to a trader whose brain ...
Posted in Uncategorized | Comments Off on Bunds vs Treasuries
Friday, March 7th, 2014
The Treasury market holds in well subsequent to the initial round of projectile vomiting in response to the better than expected data. In my conversations this morning I have only heard of buyers and an absence of sellers. One trader noted that he thought an asset allocation trade is the ...
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Friday, March 7th, 2014
Corporate spreads are unchanged today. I spoke with a syndicate desk manager who thought that while spreads are unchanged the tone is heavy as the market digest this week's heavy supply. The GE deal from yesterday is slightly tighter than pricing levels. The 10 year tranche priced at 75 and ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Friday, March 7th, 2014
Mortgages are 2+ to 3+ ticks tighter to Treasuries in current coupons. The best performer of day is FNMA 4.5 which are 4 + tighter. Yield whores are in on the rate back up and dealers report bank portfolio buying of the product.
Posted in Uncategorized | Comments Off on MBS
Friday, March 7th, 2014
Hilsenrath states the obvious in this one as he reports that FOMC will continue taper and drop monthly purchases to $55 billion from current $ 65 billion . He reiterates point that FOMC hierarchy thinks recent soft patch is weather related and notes they will discuss forward guidance and the ...
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Friday, March 7th, 2014
Dealers with whom I converse have reported better buying with 10s around 2.80 level and bonds at 3.74 level.
There have been some interesting yield curve moves since 835AM. The belly of the curve is still getting hammered.I do not watch 2s 5s 10s often because the 2 year note is ...
Posted in Uncategorized | Comments Off on Morning Miscellany