Archive for June, 2014

Repo WAM

Saturday, June 14th, 2014

This is an excellent article from Liberty Street Economics on the state of repo funding of risky assets by primary dealers. The article notes that dealers have made significant gains in locking in funding but there is great variation across dealers. It is an interesting read.

Iraq Atrocity

Friday, June 13th, 2014

Stratfor reports that the UN has stated that the insurgents executed hundreds (and maybe thousands) of civilians as they captured Mosul.

Iraq Events and Commodity Prices

Friday, June 13th, 2014

Via TD Commodities Research: IT'S NOT JUST ABOUT OIL: IRAQ TENSIONS COULD WREAK HAVOC ACROSS MANY ASSET CLASSES IF THINGS SPIN OUT OF CONTROL — TDS COMMODITY CHART LOGIC Just as financial markets seemed to have started behaving as we believed they should have — WTI crude starting to move below $100/bbl, ...

Some Flow Stuff

Friday, June 13th, 2014

Via RBS Securities: Our Treasury flows were real money selling of 30’s and fast money selling of 5’s. In TIPS, we had real money buying of 5’s and selling 10’s. Treasury inter-dealer broker volume was 98% of the 10-day average. Mortgages: Volumes in mortgages ramped up today, and the basis finished the ...

Obama Channels Hamlet

Friday, June 13th, 2014

The Leader of the Free World just concluded a statement and a truncated press conference before a flight to North Dakota and he stated that there would be no decision on Iraq for several days. I think that it took JFK and his associates less time to respond to missiles ...

Iraq Analysis

Friday, June 13th, 2014

This is a worthwhile piece from Thehill.com which provides a nice but depressing analysis of the choices and outcomes which the US faces in Iraq as that nation spirals out of control.

Curvology and Other Assorted Miscellany

Friday, June 13th, 2014

I went to the gym and came back and the residue of the Carney comments from yesterday moves the market a second time. First a background analogy. I recall that when the financial crisis first bloomed back in early 2007 (wasnt really blooming but to coin a phrase manifested its ...

MBS

Friday, June 13th, 2014

Mortgages were quiet in the overnight session and are marginally tighter in both 30s and 15s  this morning. One dealer noted that the Open market Desk would hoover in nearly $ 2billion of 3.5 and 4s at 1145 AM and that will keep the market firm throughout the morning.

FX

Friday, June 13th, 2014

Via Brown Brothers Harriman Bank of England Governor Carney’s hawkish comment spurred sterling’s advance late yesterday that has carried into today’s activity.  Sterling is within spitting distance of the $1.70 barrier and has pushed the euro below GBP0.8000.  Short-sterling interest rate futures have sold off sharply.  The implied rate of the ...

Overnight Flows

Friday, June 13th, 2014

This is the piece I post daily from CRT Capital. I want to just point out the huge volume as volume was 149 percent of the 10 day moving average. For all those who argue that the business is dead all you need is a whiff of rate hikes and ...