Archive for July, 2014
Wednesday, July 9th, 2014
Via Bloomberg;
IG CREDIT: Client Flows Led Trading; 3 Yankees Set to Price
2014-07-09 10:06:15.451 GMT
By Robert Elson
July 9 (Bloomberg) -- The final Trace count for secondary
trading was $13.5b vs $10.6b Monday and $12b the previous
Tuesday. 10-DMA at $11.6b.
* VZ 5.15% 2023 topped the most active list; client buying was
3:2 over selling, together accounting for 52% of volume
* SMFG 0.90% 2016 was next; client flows at 100%
* SMFG 1.35% 2015 was 3rd; client flows took 100% of volume
* CAT 2.10% 2019 was 4th; client flows at 92%
* IBM 1.625% 2020 was 5th; client flows 79%
* Three Forest Lab (ACT) 2019-2021 issues topped the 144a most
active list; two-way client flows dominated trading
* BofAML IG Master Index unchanged at +107; +106, its low for
2014 and the tightest spread since July 2007 was seen June
24; year wide +132
* Standard & Poor’s Global Fixed Income Research IG unchanged
at +141, 2014’s low post-crisis low; +164, the wide for 2014
was seen 4x in Feb
* Markit CDX.IG.22 5Y Index closed at 57.7 vs 55.9; 55 was
seen Thursday, a new 52-week low and the lowest level since
Oct 2007, vs 57; 52-week high of 97.6 was seen June 24
* IG issuance totaled $8.5b Tuesday, including two under-the-
radar issues from ANZ and MET totaling $625m
* BofAML, Citi and Barc topped the IG manager’s list for the
week so far
* IG issuance YTD $821.6b
* BNG, DBSSP, KLABIN to lead issuance today
Posted in Uncategorized | Comments Off on Yesterday in Corporate Bonds
Wednesday, July 9th, 2014
Prices of Treasury coupon securities have registered modest declines in overnight trading. There is no screaming focal point and the decline in prices appears to me to be a function of the duration which the street will bid today and tomorrow with the Treasury sale of 10s and 30s. We ...
Posted in Uncategorized | Comments Off on July 09 2014 Opening
Wednesday, July 9th, 2014
And then there is this story which describes the swollen state of FX reserves in Asia some of which will find a home in the Treasury market. It is another reason to temper one's bearishness.
Via WSJ:
WSJ: Currency Reserves Swell in Asia
Central-Bank Policy Makers Fight Tide of Cheap Global Capital
By Wayne ...
Posted in Uncategorized | Comments Off on FX Reserves
Wednesday, July 9th, 2014
A fully paid up subscriber forwarded this story on some credit issues in Portugal. I had heard this late yesterday from a PM and I must be suffering from creeping senescence as I paid no attention to the story. The reader who forwarded this story noted that yields on Portugal ...
Posted in Uncategorized | Comments Off on Credit Market Rumblings in Portugal
Wednesday, July 9th, 2014
This is a fascinating article (to me) on money from China driving prices in the housing market in California.
Posted in Uncategorized | Comments Off on Money from China Fuels Housing Market
Tuesday, July 8th, 2014
Via Pierpont Securities:
On Wednesday July 9 the US and China begin the annual two-day Strategic & Economic Dialogue in Beijing (the first one in over a decade at which USD/CNY is stronger) and ECB President Draghi delivers a Memorial Lecture on monetary policy in London.
AUSTRALIA: Westpac Consumer Confidence Index for ...
Posted in Uncategorized | Comments Off on Overnight Data Preview
Tuesday, July 8th, 2014
According to this FT story hedge fund shorts in equities are at their lowest level since 2006. That is a good reason to take some money off the table.
Via the FT:
Short selling drops to lowest level since Lehman
By Miles Johnson, Hedge Fund CorrespondentAuthor alerts
Hedge funds have sharply scaled back their ...
Posted in Uncategorized | Comments Off on
Tuesday, July 8th, 2014
Via RBS Securities;
Our Treasury flows were fast money buying of 10’s, central bank buying of 10’s, real money selling of 30’s, and real money selling of 7’s. In swaps we had macro paying the belly of 2’s-5’s-10’s and fast money accounts receiving 10yr rate and paying 1y1y. In TIPS, we ...
Posted in Uncategorized | Comments Off on Some Flow Stuff
Tuesday, July 8th, 2014
Prices of Treasury coupon securities continue to rally and confound those who sold for a supply concession. The best explanation I heard today was from a trader who offered the opinion than real retail did not buy at month end in June but bought Thursday after the employment report back ...
Posted in Uncategorized | Comments Off on End of Day Treasury Comments
Tuesday, July 8th, 2014
Via Bloomberg:
By Lisa Loray
July 8 (Bloomberg) -- Five issuers are expected to price
$7.9b today after six sold $4.7b in 8 tranches yesterday.
* Two have been added to tomorrow’s calendar
* Weekly volume to $12.6b, month $19.3b, YTD $820.9b
* Domestic names quiet save for American Honda finance 2-part
offering
* Three FRNs priced $1.15b; ...
Posted in Uncategorized | Comments Off on Today’s Corporate Issuance