Archive for April, 2014

Trade Compression

Tuesday, April 1st, 2014

The flurry of regulatory reform which flowed from the financial crisis has made it more difficult for dealer firms to transact business in the manner in which they grown accustomed. The regulatory referees have imposed far more stringent capital requirements than existed  in the pre crisis world. This WSJ story ...

Asian Development Bank on China Economy

Tuesday, April 1st, 2014

The Asian Development Bank posits that GDP in China will increase at a rate of 7.5 percent this year. The Bank sees continued appreciation of the yuan in the medium term and long term. The Bank also expects investment growth to slow as the PBOC tries to rein in credit ...

Pierpont Securities on the Yellen Speech

Tuesday, April 1st, 2014

Via Pierpont Securities: I wanted to offer a brief commentary on Fed Chair Yellen’s speech from yesterday.  I needed 24 hours to catch my breath after reading the speech, and the less I say, probably the better it will be for me.  However, I just couldn’t let the speech pass without ...

Treasury Flows

Tuesday, April 1st, 2014

One market maker reporting fast money clients unwinding flatteners as we speak. The 5s 30s spread is now out to 186.7 and is out over 6 basis points since MS Yellen delivered her premeditated retraction.

Corporates

Tuesday, April 1st, 2014

The calendar reads April 1 and that has brought an influx of corporate bond buyers back to the market. Spreads in most sectors are about 2 basis points tighter. The recent Bank America 5 year deal is a great example of demand for paper with a modicum of quality. The ...

Swaps

Tuesday, April 1st, 2014

Swap spreads are unchanged to slightly wider across the curve. There is no particular theme driving that market today and one salesman with whom I spoke said that he did not think there was any particularly hefty resting trade in that space. In terms of client flow the only noteworthy ...

March Corporate Recap

Tuesday, April 1st, 2014

Via Bloomberg: IG CREDIT: Volume Rises 20% in March as $140.8b Prices 2014-04-01 12:25:41.288 GMT By Lisa Loray April 1 (Bloomberg) -- $140.8b priced from 106 issuers in 179 tranches in March, up from $117.7b in February and short of $157.9b in January. * Domestic corporates (40%) outpaced finacials (37.5%) for the second consecutive month after financials led ...

MBS

Tuesday, April 1st, 2014

Mortgages finished yesterday about 2 ticks wider to Treasuries.Index buying was very light and money managers and hedge funds were better sellers. Origination was light at about $800 million. The basis is steady in the opening this morning.

Complete Corporate List Thus Far

Tuesday, April 1st, 2014

Via Bloomberg: ommuninvest I Sverige Aktiebolag 1 bln Aaa/AAA,    3 yr  144A Reg S                                            spread set MS +6 Massachusetts Institute of Technology 550mm Aaa/AAA    100 yr ipt +115-120 Shinhan Bank TBD ...

More Corporate Deals

Tuesday, April 1st, 2014

I think this is a curious juxtaposition of names on this list. And who would lend Costa Rica money for 30 years. Via Bloomberg: Republic of Costa Rica B'Mark Baa3/BB    30 yr 144A Reg S asap ipt +low 7% Citigroup Inc. B'Mark Baa2/A- 1/2 parts  5 yr fxd and/or frn asap ipt 5 yr fxd +mid ...