Archive for October, 2014
Saturday, October 18th, 2014
Via M
Think small
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 longer ...
Posted in Uncategorized | Comments Off on Eclectic Topics Via Merrill Lynch
Friday, October 17th, 2014
Via WSJ:
Mortgage Giants Set to Loosen Lending
Fannie, Freddie NearDeal to Lift Limits; Concerns Persist
By
Joe Light
Updated Oct. 17, 2014 6:56 p.m. ET
189 COMMENTS
Fannie Mae , Freddie Mac and mortgage lenders are nearing an agreement that could lower barriers and restrictions on borrowers with weak ...
Posted in Uncategorized | Comments Off on FNMA and Freddie Mac To Ease Lending Standards
Friday, October 17th, 2014
TIPS have staged a significant recovery from their worst breakeven levels of the week. At its lowest point the 5 year TIPS traded to 141. They are currently around 153. At their worst levels 10 year TIPS traded down to 183. They currently trade at 193. The 30 year TIPS ...
Posted in Uncategorized | Comments Off on TIPS
Friday, October 17th, 2014
The Treasury market is taking a pummeling today as the volatility continues. The risk on environment is taking a toll on safe haven assets as the equity market soars today and bonds lose their allure.
Traders report selling across the curve with particularly large blocks trading in off the run paper ...
Posted in Uncategorized | Comments Off on Treasury Market Musings
Friday, October 17th, 2014
Via Robert Sinche at Amherst Pierpont Securities:
Next Tuesday (local time in Beijing, Monday PM in US) will bring a major update of Chinese economic data, with Retail Sales, Industrial Production and Fixed Asset Investment for September along with GDP for 3Q2014. While IP growth may rebound a touch, the Bloomberg ...
Posted in Uncategorized | Comments Off on Possible Easing of Monetary Policy in China?
Friday, October 17th, 2014
It is a day of financial nirvana for those in the rentier class with holdings in the corporate bond sector. Long dated bank and finance paper is better by 1 basis point to 5 basis points. The JPM 5 year deal which priced Wednesday at + 100 and which I ...
Posted in Uncategorized | Comments Off on Corporate Bond Spreads
Friday, October 17th, 2014
Swap spreads are narrower across the board today. Two year spreads are tighter by 1/2 basis point and 5 year spreads have narrowed 1 basis point. The 10 year spread has tightened 1 1/4 basis points and 30 year spreads are in by 3/4s. Spreads have been very directional as ...
Posted in Uncategorized | Comments Off on Swap Spreads
Friday, October 17th, 2014
Via Bloomberg:
IG CREDIT: List of New Issues Expected to Price in U.S. Today
2014-10-17 13:38:54.315 GMT
By Greg Chang
Oct. 17 (Bloomberg) -- The following is a list of new
issues expected to price today.
* Bank of America Corp. $benchmark Baa3/BBB+
* 12Y Sub Debt
* IPT +225 area
* Books: BofAML
* Books: BofAML</li></ul>
* PepsiCo Inc. $500m ...
Posted in Uncategorized | Comments Off on Corporate Bond Issuance Today
Friday, October 17th, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 8:30am: Housing Starts, Sept., est. 1.008m (prior 956k)
**Housing Starts, m/m, est. 5.4% (prior -14.4%)
* Building Permits, Sept., est. 1.030m (prior 998K,
revised 1.003m)
* Building Permits, m/m, est. 2.7% (prior -5.6%, revised
-5.1%)
* Building Permits, m/m, est. 2.7% (prior -5.6%, revised
-5.1%)</li></ul>
* 9:55am: UofMich Confidence, ...
Posted in Uncategorized | Comments Off on What to Watch for Today
Friday, October 17th, 2014
Via Bloomberg:
IG CREDIT: Record High in Dealer Positions of Short IG Issues
2014-10-17 10:47:16.605 GMT
By Robert Elson
Oct. 17 (Bloomberg) -- Dealer positions in corporate bonds
rose $3.3b to $38.1b as of Oct 8. $45.9b, seen March 5, was the
high for the series Fed began April 2013; $23b low was Aug 28,
2013.
* Investment ...
Posted in Uncategorized | Comments Off on Dealer Positions