Archive for October, 2014
Monday, October 20th, 2014
The WSJ reports a gathering today of bankers, regulators and law enforcement folk at which senior regulators took the financial solons to task for bad behavior. Federal Reserve Bank of New York President (and Goldman alum) William Dudley raised the specter of regulators breaking up banks which did not toe ...
Posted in Uncategorized | Comments Off on Maybe Breaking Up Isn’t Hard to Do
Monday, October 20th, 2014
Via Merrill Lynch Research:
Small caps outperformance means the market is starting to discount the global weakness story as impacting the US economy.
For now we retain our tactical long credit risk stance on the IG market, which we have held since Tuesday night.
We are still cautious about credit spreads in the ...
Posted in Uncategorized | Comments Off on Eclectic Topics
Monday, October 20th, 2014
Via Richard Gilhooly of TDSecurities:
Bonds kicked off the week with a timid start after last week's challenging volatility, with investors' perceptions of risk altered in a lasting manner by the violence of last Wednesday's moves. The equity markets have shown similar price action albeit on rare occasions, most recently the ...
Posted in Uncategorized | Comments Off on End of Day Analysis
Monday, October 20th, 2014
Via Bloomberg:
+------------------------------------------------------------------------------+
IG CREDIT: Domestic Financials Lead Today’s Issuance
2014-10-20 18:05:51.294 GMT
By Lisa Loray
Oct. 20 (Bloomberg) -- $7.6b is expected to price from four
issuers today, highest daily volume since $8.6b priced on Oct.
6. Monthly volume to $48.4b, YTD $1.141t.
* One FRN to price, $500m GS 5Y FRN at 3mL+102, the first FRN
since ...
Posted in Uncategorized | Comments Off on Corporate Issuance Today
Monday, October 20th, 2014
The Treasury market is reasonably quiet and orderly as the frantic trading pace of last week subsides. I have heard of heavy end user selling of the six year point on the Treasury curve. One trader noted that this is the third consecutive day in which the six year sector ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Monday, October 20th, 2014
Swap spreads are unchanged in the 2 year sector and 3/4 basis point tighter in the 5 year sector. Ten year spreads have narrowed 1 1/2 basis points and thirty year spreads are 1 basis point tighter.
The spread tightening is motivated by heavy issuance by financial institutions who are likely ...
Posted in Uncategorized | Comments Off on Swap Spreads
Monday, October 20th, 2014
Goldman Sachs analysts have locked the barn door with the horse miles from the barn as they lower their forecast for the year end level on the 10 year note to 2.50 from 3.00 percent.
Via Bloomberg:
RATES: Goldman Sachs Cuts 10Y Yield Year-End Estimate to 2.50%
2014-10-20 14:06:03.295 GMT
By Monika Grabek
Oct. 20 ...
Posted in Uncategorized | Comments Off on Goldman Sachs Analyst Mimics Roberto Duran’s “No Mas”
Monday, October 20th, 2014
Via Bloomberg:
IG CREDIT: Domestic Financials Lead Today’s List of Four Issuers
2014-10-20 14:10:19.141 GMT
By Lisa Loray
Oct. 20 (Bloomberg) -- Domestic financials lead today’s
list of four issuers start the second to last week of October.
Last week’s issuance failed to top $10b for just the fourth time
this year; Oct. volume at $40b, YTD ...
Posted in Uncategorized | Comments Off on Corporate issuance Today: Financial Led
Monday, October 20th, 2014
This a Bloomberg article which cites a piece written by Sean Keane of TripleT Consulting. I know nothing of the author or that firm. The Bloomberg story says that CS distributed the piece to clients.
The main point of the piece is that the market is now too big to provide ...
Posted in Uncategorized | 1 Comment »
Monday, October 20th, 2014
Long Dated financials are opening from unchanged (GE 24s) to +5 (MS 24s). IBM paper is 6 basis to 7 basis points wider following their less than robust earnings and guidance this morning. The JPM 5 year which priced last week at + 100 is currently 93/90. The IG 23 ...
Posted in Uncategorized | Comments Off on Corporate Bond Opening