Archive for August, 2014
Wednesday, August 27th, 2014
Via CRT Capital:
*** An uneventful takedown with non-dealers awarded 63.5% vs. 65% norms. ***
* 5-year auction stops at 1.646% vs. 1.645% 1pm bid WI.
* Dealers were awarded 36.5% vs. 35% average of last four 5-year auctions.
* Indirects get 52.7% vs. 49% norm.
* Directs take 10.8% vs. 16% average -- suggests ...
Posted in Uncategorized | Comments Off on Five Year Result
Wednesday, August 27th, 2014
Via Bloomberg:
Moody’s, S&P Face New Oversight as SEC Adopts Conflict Rules
2014-08-27 16:12:17.759 GMT
By Kim Chipman
Aug. 27 (Bloomberg) -- SEC, in 3-2 vote, approves new
restrictions on conflicts of interest under rules that will
require credit-ratings cos., incl. Moody’s and McGraw Hill’s
Standard & Poor’s, to ensure they follow internal methodologies
when grading debt and ...
Posted in Uncategorized | Comments Off on From the Quis custodiet ipsos custodes? Department
Wednesday, August 27th, 2014
Via CRT Capital:
We are constructive on this afternoon’s 5-year auction as the sector continues to look attractive vs. 2s/10s from both a technical and seasonal perspective (ask for our charts on this if you’re interested). In addition, the four of the last five months represent the highest bank allocations since ...
Posted in Uncategorized | Comments Off on CRT Capital on Five Year Note Auction
Wednesday, August 27th, 2014
In a little over one hour the Treasury will bless the dealer community with an offering of $35 billion 5 year notes. I think that this issue is a buy for a variety of reasons. It is cheap on the yield curve as 2s 5s 10s is trading at its ...
Posted in Uncategorized | Comments Off on Five Year Note Auction
Wednesday, August 27th, 2014
Bank and finance paper is unchanged to a basis point tighter. The IG 22 is unchanged at 55 1/2 / 56.
The new issue calendar is sparse once again and will not pick up until the calendar reads September.
Posted in Uncategorized | Comments Off on Corporate Bond Opening
Wednesday, August 27th, 2014
Via Marc Chandler at Brown Brothers Harriman:
- Despite the minor dollar setback today, the uptrend remains intact
- There are only three major currencies that have gained against the dollar in August, NOK being the outlier
- The focus on the yen as a funding currency distracts us from what is more ...
Posted in Uncategorized | Comments Off on FX
Wednesday, August 27th, 2014
Via the FT:
World News
IMF's Lagarde placed under formal investigation
Christine Lagarde, the head of the International Monetary Fund, has been placed under formal investigation on suspicion of negligence by a French court in connection with a political scandal dating back to her time as finance minister under former president Nicolas Sarkozy.
The ...
Posted in Uncategorized | 1 Comment »
Wednesday, August 27th, 2014
Via Bloomberg:
IG CREDIT: 10-DMA Remains at 2014 Low; Pipeline Builds
2014-08-27 09:46:21.657 GMT
By Robert Elson
Aug. 27 (Bloomberg) -- The final Trace count for secondary
trading was $11.4b vs $7.3b Monday and $13.1b the previous
Tuesday. 10-DMA at $10.3b, unchanged at the new low for 2014;
10-DMA of only Tuesday sessions is $12.7b.
* 144a trading ...
Posted in Uncategorized | Comments Off on Secondary Market Corporate Trading Yesterday
Wednesday, August 27th, 2014
Prices of Treasury coupon securities have registered modest gains in overnight trading with intermediate benchmarks maintaining the bid which developed yesterday in spite of the Treasury's impending auction of 5 year notes today and 7 year notes tomorrow. In my opinion the proximate cause of the small yield declines is ...
Posted in Uncategorized | Comments Off on August 27 2014 Opening
Tuesday, August 26th, 2014
Corporate bond issuance has slowed to a trickle in August but will resume with a vengeance after Labor Day. Merrill Lynch anticipates $100 billion in investment grade issuance in September following a paltry $46 billion in August and $53 billion in July.
Via Bank America Merrill Lynch Research;
Busy start to the ...
Posted in Uncategorized | Comments Off on Corporate Bond Issuance in September