Archive for May, 2014
Friday, May 2nd, 2014
This is an interesting article on the lack of liquidity engendered by regulatory changes in Europe and the US. Thanks to David Ader at CRT for pointing this out.
Via Bloomberg:
Liquidity Trap Hitting AAA Bonds Has ATP CEO Sounding Alarm
By Peter Levring - May 1, 2014
Carsten Stendevad, chief executive officer of ...
Posted in Uncategorized | Comments Off on Unintended Consequences of Regulatory Change
Friday, May 2nd, 2014
Prices of Treasury coupon securities have registered very modest declines relative to levels which prevailed at 930PM last night. Earlier in the trading day the market parried the low end of the ennui inducing 2.80 to 2.60 trading range on the 10 year note. We rest just a stone's throw ...
Posted in Uncategorized | Comments Off on May 02 2014 Opening
Thursday, May 1st, 2014
The WSJ is reporting that when German leader Merkel meets with President Obama that she will be carrying an unwelcome message. German business leaders are opposed to tougher sanctions as they do not want to jeopardize relationships with Russia. Mr Obama is not exactly Winston Churchill but even if he ...
Posted in Uncategorized | Comments Off on Not Exactly a Profile in Courage
Thursday, May 1st, 2014
Merrill reports money exiting loan funds and that same money seeking safe sanctuary of the warm and cozy high grade bond fund cocoon.
Via Merrill Lynch Research:
Out of loans, into duration. Economic growth concerns and low interest rates continue to affect flows. Hence, outflows from loan funds accelerated last week (ending on ...
Posted in Uncategorized | Comments Off on Merrill Lynch on Mutual Fund Inflows
Thursday, May 1st, 2014
This is via my friend and former colleague Richard Gilhooly of TD Securities. He is thought provoking as always.
Via Richard Gilhooly of TD Securities:
Bond yields went out at new lows for the year as the curve reversed recent steepening and remained true to the peak concession being seen around refunding ...
Posted in Uncategorized | Comments Off on End of Day Note
Thursday, May 1st, 2014
I have been sparse blogger today as I have taken off my reporter/commentator hat and have been playing grandfather today. While I was away the market has rallied robustly . Since I wrote at 600AM the curve is a bunch flatter as the back end leads the way. So 5s ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Thursday, May 1st, 2014
Via TD Securities:
Personal income grew at a very strong 0.5% m/m pace in March, marking the fastest monthly advance in this indicator since August 2009. Rising wage (up 0.6% m/m) and rental (up 0.8% m/m) income were the big contributors to the rise in take home pay, which more than ...
Posted in Uncategorized | Comments Off on Personal Income and Spending: Robust
Thursday, May 1st, 2014
Via the good folks at Bloomberg and for most part not exactly household names:
rmaca Enterprises, S. de R.L. de C.V. 527mm Baa2/NR/BBB-
2038 final WAL 15 yr 144A reg S
ipt 7% area
Union Bank, N.A 500mm(ng) A2/A+ 5 yr
1 mo par call prior
ipt +mid 70's
Ryder System Inc. 400mm (ng) Baa1/BBB long ...
Posted in Uncategorized | Comments Off on Corporate Bond Issuance Thus Far
Thursday, May 1st, 2014
Pimco's Bill Gross was out with his monthly musing yesterday and he touched on a theme I have written bout here several times. Several market participants with whom I speak (on both buy side and sell side) have favored the idea that the terminal funds rate will be well below ...
Posted in Uncategorized | 3 Comments »
Thursday, May 1st, 2014
Ms Yellen speaks to a group of independent community bankers at 830AM. I understand they will all be wearing polyester suits.
Separately RBS Securities reports that the holiday influenced trading produced volume at only 53 percent of the 10 day moving average through 600AM.
Posted in Uncategorized | Comments Off on Miscellany