Archive for September, 2014

Stratfor’s George Friedman on Scotland

Wednesday, September 10th, 2014

Mr Friedman thinks that a Yes vote for independence would seriously roil the world and spark independence movements across the globe. He provides potent historical context to support his argument. Via Stratfor: Scottish Independence Would Shake Up the Global System By George Friedman, Stratfor September 9, 2014 Polls released today showed for the first time ...

Shrinkage But Not the Costanza Type

Wednesday, September 10th, 2014

Via Bloomberg: BofA’s Moore, Hartney Said to Depart as Job Cuts Loom in Trading 2014-09-10 15:47:30.305 GMT By Hugh Son and Julia Verlaine Sept. 10 (Bloomberg) -- Bank of America Corp. trading executives David Moore and David Hartney departed as the firm prepares to eliminate fixed-income and equities jobs worldwide, according to people with knowledge of the ...

CRT Capital on 10 Year Note Auction

Wednesday, September 10th, 2014

Via Ian Lyngen at CRT Capital: We are focused on the significant concession that’s been built in for this afternoon’s $21 bn 10-year reopening auction and highlight that yields are 20 bp higher than at the end of August.  Volumes are above average (suggesting a meaningful setup) and investment fund allocations ...

Updated Corporate List

Wednesday, September 10th, 2014

Via Bloomberg: IG supply 19.95 billion, well on its way to 30+ billion} Monday was 8+ billion, yesterday a cool near 12 bllion Today's supply looks to be +8 HSBC Holdings plc 3.75 bln Baa3/BBB(Fitch) 2 part Perps Launched $1.5b Perp/NC5  5.625% vs 5.75% area guidance/5.75-6.00% IPT Launched $2.25b Perp/NC10 6.375% vs 6.50% area guidance/6.50-6.75% IPT hsbc EBRD ...

Ten Year Note Auction and Other Miscellany

Wednesday, September 10th, 2014

The Treasury yield curve has steepened since I wrote early this morning. The 5s 10s spread has moved from 74.4 to 75.3. The 5s 30s spread has widened 2 basis points to 149 from 147. Similarly the 10s 30s spread has widened from 72.6 to 73.7. I am hearing of robust ...

Today’s List

Wednesday, September 10th, 2014

via Bloomberg: HSBC Holdings plc 3.75 bln Baa3/BBB(Fitch) 2 part Perps Launched $1.5b Perp/NC5  5.625% vs 5.75% area guidance/5.75-6.00% IPT Launched $2.25b Perp/NC10 6.375% vs 6.50% area guidance/6.50-6.75% IPT hsbc EBRD 225mm Aaa/AAA  tap 1.75% 6/2019 spread set ms -2                    bnp,c,hsbc The Kingdom of Bahrain acting through the ...

What to Watch

Wednesday, September 10th, 2014

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 7:00am: MBA Mortgage Applications, Sept. 5 (prior 0.2%) * 10:00am: Wholesale Inventories m/m, July, est. 0.5% (prior 0.3%) * Wholesale Sales m/m, July, est. 0.6% (prior 0.2%) Central Banks * 9:45am: Bank of England’s Carney speaks in Parliament * 5:00pm: Reserve Bank of New Zealand seen maintaining ...

One for the Yield Whores

Wednesday, September 10th, 2014

If you are desperate for yield park some money in 30 year Bahrain. Via Bloomberg: Kingdom of Bahrain - $1.25bn 30yr Launched @ 6.00%

FX

Wednesday, September 10th, 2014

Via Mark Chandler at Brown Brothers Harriman: Sterling, Yen and Aussie in Focus - Three issues dominate the foreign exchange market:  the Scottish referendum, the data and policy guidance out of Japan, and the fall in the Australian dollar - US 10-year yields are pushing above 2.50%, but the sell-off in the European ...

Secondary Market Corporate Bond Trading Yesterday

Wednesday, September 10th, 2014

Via Bloomberg: IG CREDIT: Higher Trading Volume as IG Issuance Tops $1t YTD 2014-09-10 10:24:57.892 GMT By Robert Elson Sept. 10 (Bloomberg) -- The final Trace count for secondary trading was $13.7b vs $10.6b Monday and $9.3b the previous Tuesday. 10-DMA $10.9b; 10-DMA of only Tuesday sessions $12.4b. * 144a trading added another $2.4b of IG volume * ...