Archive for July, 2014
Monday, July 21st, 2014
Via mark Chandler of Brown Brothers Harriman:
Four Drivers for the Week Ahead
- Will geopolitical issues drive the capital markets?
- Will US bond yields continue to decline?
- Is the euro area economy beginning to contract again?
- Is the dollar breaking out to the upside against the euro and sterling and to ...
Posted in Uncategorized | Comments Off on FX
Monday, July 21st, 2014
Via Bloomberg:
IG CREDIT: Client Flows Led Trading; Ex-Im China Added to List
2014-07-21 09:47:25.671 GMT
By Robert Elson
July 21 (Bloomberg) -- The final Trace count for secondary
trading was $9.7b vs $12.7b Thursday and $7.5b the previous
Friday. 144a trading added another $1.2b of IG volume.
* 10-DMA at $11.2b; 10-DMA of only Friday sessions ...
Posted in Uncategorized | Comments Off on Credit Trading Friday
Monday, July 21st, 2014
This is a comprehensive piece from the FT which points a finger squarely at Russian responsibility in the death of all of the passengers on the Malaysian airliner. The article cites photographic and videotaped evidence as well as snippets of wiretapped phone conversations.
There are no secrets in our Orwellian world.
Via ...
Posted in Uncategorized | Comments Off on Strong Evidence of Russian Complicity in Downing of Malaysian Aircraft
Monday, July 21st, 2014
Prices of Treasury coupon securities have registered bifurcated results in a quiet overnight session (Tokyo closed for a holiday) with short yields a tad higher and longer dated yields lower. The flattening of the curve continues and various spreads have attained cycle lows. There was little meaningful data released overnight. ...
Posted in Uncategorized | Comments Off on July 21 2014 Opening
Sunday, July 20th, 2014
The financial repression engineered by the Federal Reserve has motivated many odd and risky behaviors by portfolio managers in their search for yield. The FT chronicles one of those behaviors in an article on the record pace of issuance this year of emerging market and frontier market debt. You have ...
Posted in Uncategorized | Comments Off on Feeding Frenzy on the Frontier
Sunday, July 20th, 2014
Interest rates in China are rising and there is a lack of enthusiasm in the fixed income there in that very managed economy. This story was out on Friday but has received little notice. The WSJ reports that for the second time in a month China failed to sell as ...
Posted in Uncategorized | Comments Off on Failed Auction
Sunday, July 20th, 2014
One equity investor suggests that current depressed levels of profitability will make the next banking crisis difficult to survive for many big banks.
Via the FT
July 20, 2014 12:32 pm
J Christopher Flowers warns of banking crisis
By Martin Arnold in LondonAuthor alerts
One of the biggest private equity investors in the banking sector ...
Posted in Uncategorized | Comments Off on On the Next Banking Crisis
Saturday, July 19th, 2014
The FT has posted an article on rising tensions in Europe over the downing of the Malaysian airliner on Friday. The story reports that the Dutch are livid as some of the remains of the dead have not been respected. The Australian Prime Minister has said that if Russia does ...
Posted in Uncategorized | Comments Off on Tensions Rising Over Downed Plane
Friday, July 18th, 2014
Swap Spreads are unchanged today after an episode of widening yesterday in response to the various geopolitical crisis.
One swap trader and one Treasury market maker each noted that they thought that traders had gotten short post Ms Yellen and those shorts have been rinsed out of the market. Real money ...
Posted in Uncategorized | Comments Off on Miscellany
Friday, July 18th, 2014
My favorite corporate bond source says that the best way to view spreads in this sector is to look at the last three days. Against that background we are essentially unchanged. The market opened cheaper yesterday and he thought that it was instructive that when equities cratered late in the ...
Posted in Uncategorized | Comments Off on Corporate Bonds