Archive for April, 2014
Monday, April 7th, 2014
The Treasury will sell $64 billion worth of 3s 10s and 30s this week. Ian Lyngen of CRT Capital in a note to clients this morning points that the refunding is raising very little new money as there are large maturities of outstanding issues which will need a home.
Via CRT ...
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Monday, April 7th, 2014
Prices of Treasury coupon securities have registered very modest losses in overnight trading. The market had initially opened higher in price on some unrest in the Ukraine (anti government protesters had raised a ruckus in several cities in the Ukraine raising fears of possible Russian intervention) but prices receded when ...
Posted in Uncategorized | Comments Off on April 07 2014 Opening
Sunday, April 6th, 2014
There is a great line in this FT story. It opens by saying that there is a growing sense that companies running websites and messaging apps may have become overvalued. Tech stocks are being routed in Asian trading with some messaging app and social media types down 4 and 5 ...
Posted in Uncategorized | Comments Off on Tech Stock Epiphany
Sunday, April 6th, 2014
Folks on the Left will grasp any opportunity to raise taxes. The latest cause celebre for the these folks is the Michael Lewis expose of high frequency trading. TheHill.com reports that some on the left want to place a tax on financial transactions because that would reduce the profit potential ...
Posted in Uncategorized | 1 Comment »
Sunday, April 6th, 2014
The FT is carrying a story about property development companies cozying up to banks by buying stakes in the bank. According to the FT story property companies have over $3billion invested in banks in China. The story points out that some of the property companies are heavily indebted to the ...
Posted in Uncategorized | Comments Off on Incestuous (Financial) Relationship
Saturday, April 5th, 2014
In her speech this week on Monday Ms Yellen suggested that the FOMC would take a holisitc view of the job market rather than a narrow view wedded to the unemployment rate and the monthly changes in non farm payrolls. Ms Yellen said the Committee would focus on the long ...
Posted in Uncategorized | Comments Off on Labor Report and the Yellen Indicators
Friday, April 4th, 2014
Merrill Lynch Research on credit spreads:
High quality is low quality. The rally in credit spreads has left high quality (A-rated and higher) Industrials now trading at spreads of 77bps, or 9bps inside late pre-credit crisis levels (which we date as 6/30/2007). That contrasts with lower quality (BBB rated) Industrials that, ...
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Friday, April 4th, 2014
In my previous post I noted that today might have been a key reversal day on the S and P. Here is the comment that a fully paid up subscriber named Willy C left on that previous post.
Via Willy C a fully paid up subscriber:
If the S&P closes here (-21 ...
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Friday, April 4th, 2014
The equity markets have really cratered and wonder if there is a message in the price action. The S and P made a new high earlier today and then turned around and is making new lows. I am not a technician nor do I pretend to be but that you ...
Posted in Uncategorized | 2 Comments »
Friday, April 4th, 2014
This is an interesting and informative bit of commentary by my former colleague and friend Richard Gilhooly. He looks for significant steepening of 5s 30s. He also speaks about optimal control theory which holds that the FOMC can scientifically control rates.
Via Richard Gilhooly of TDSecurities:
The post-NFP rally continues to have ...
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