Archive for April, 2014

Very Early Corporate Bond Stuff

Tuesday, April 8th, 2014

Via Bloomberg: By James Holloway April 8 (Bloomberg) -- (Adds EBRD, NEWBNK.) * The following deals are expected to price today: * EBRD Aaa/AAA 5Y global via C, DB, HSBC, MS; expected to price today, spread MS +1 * Nederlandse Waterschapsbank (NEWBNK), Aaa/AA+, 144a/Reg. S via BNP, C, TD; spread set at MS+20 * Abengoa SA (ABGSM) na/BBB-/BBB-, ...

Rising Tensions in Ukraine

Tuesday, April 8th, 2014

In 1939 Hitler had German troops don Polish uniforms and had then invade a German radio station in Germany (now Poland)  and then used that staged provocation as the pretext for the subsequent German blitzkrieg of Poland which marked the official opening of World War 2. That incident coalesced opposition ...

Incredible Shrinking Deficit

Monday, April 7th, 2014

The CalculatedRisk blog reports on an update from the CBO which calculates that the deficit for the first six months of the current fiscal year is $413 billion. That is not exactly an odd lot but it is fully $187 billion less than the deficit in the same period last ...

Merrill Lynch on Credit Spreads

Monday, April 7th, 2014

Via Merrill lynch Research:   Debt vs. equity. Over the past two post-payrolls trading days (since Thursday) stocks have declined about 2.3% (S&P 500), significantly underperforming investment grade credit, which is just 1.15bps wider at 68bps, and even high yield, which has declined about 0.57pts to 107.2 (both CDX). Judged by the historical ...

Swap Spread Close

Monday, April 7th, 2014

Swap spreads closed 1/2 basis point wider in 2s and 5s and unchanged elsewhere. Dealers reported interest in receiving 2year/2year ,some interest in forward starting flatteners out to 20 years, ans some deal related receiving interest in the belly of the curve.

Swap Spreads

Monday, April 7th, 2014

Swap spreads have barely budged. Two year spreads are about 1/4 basis point wider while 5s 10s and 30s are all unchanged. The level of activity is light. I have heard of black box paying small size in the belly.

Corporate Bonds

Monday, April 7th, 2014

As one would expect amidst the equity market carnage and the generalized risk off tome spreads are wider today. But as one participant noted they have not moved as much as one would expect given the movement in other markets. The key reason for the subdued move is that there ...

Light Corporate Calendar

Monday, April 7th, 2014

Via Bloomberg: IG CREDIT: Two to Price Today, Two Expected Tomorrow 2014-04-07 14:23:44.523 GMT By Lisa Loray April 7 (Bloomberg) -- Four names have been added to today’s IG calendar, with two set to price today and two tomorrow. Month stands at $19.3b and YTD issuance $435.7b * One EM and one domestic financial are expected to ...

Treasury Market Update

Monday, April 7th, 2014

The Treasury yield curve continues to steepen today. The 5s 30s spread which opened at 189.4 is now 190.3. Similarly, 10s 30s has moved from 86.8 to 87.1. The improvement is all in the belly as 2s 5s has flattened from 127.4 to 127.1. The 2s 5s 10s spread is ...

Geopolitics

Monday, April 7th, 2014

Mark Chandler of Brown Brothers on a territorial dispute between China and the Phillipines (about which I will confess I knew nothing). Via Mark Chandler of Brown Brothers: Unbeknownst to many, the dispute with between China and the Philippines has escalated and is, arguably, surpassing the dispute with Japan. There have been ...