Archive for November, 2014
Monday, November 17th, 2014
Via Merrill Lynch Research:
When the tide goes out. For credit the most prominent unintended consequence of increased financial regulation is reduced liquidity via the collapse in dealer balance sheets (among other things). As we have argued, that means investment grade credit spreads should be permanently wider as the fair liquidity ...
Posted in Uncategorized | Comments Off on Eclectic Mix from Merrill Lynch
Monday, November 17th, 2014
The Treasury market has been a lazy backwater today and more of the action has occurred elsewhere. The market failed to hold overnight gains generated by weak GDP in Japan and the market succumbed to corporate bond sales and rate locking of upcoming deals. In terms of particular flow in ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Monday, November 17th, 2014
The Federal Research Bank of San Francisco has posted a research paper on its website which posits salutary results on inflation through 2016. In other words inflation will stay below the 2 percent target though 2016 and the risks to that forecast are to the downside. Here is the relevant ...
Posted in Uncategorized | Comments Off on Inflation Story
Monday, November 17th, 2014
Via Richard Gilhooly at TDSecurities (who always makes you think):
Monday managed to deliver a confusing combination of price action that left bonds in the middle of a 3.01-3.11% range, having looked like breaking to the downside earlier this morning. Sterling continued its internal bleeding with GBP making new lows for ...
Posted in Uncategorized | Comments Off on Market Analysis
Monday, November 17th, 2014
The Treasury market has surrendered the gains achieved overnight on the Japan dips into recession story and we are actually a tad lower in price now.
Dealers attribute the retreat to corporate supply and rate locking of future supply. There is a reasonable spate of corporates today and there is talk ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Monday, November 17th, 2014
Via Bloomberg:
IG CREDIT: List of New Issues Expected to Price in U.S. Today
2014-11-17 14:51:55.64 GMT
By Greg Chang
Nov. 17 (Bloomberg) -- The following is a list of new
issues expected to price today:
* Axis Bank $benchmark Baa2/BBB-
* 5.5Y 144A/Reg S
* Final guidance +175 +/- 5 bps vs IPT +195 area
* Books: Barclays, ...
Posted in Uncategorized | Comments Off on New Issue List
Monday, November 17th, 2014
The IG 23 opened unchanged this morning at 65 1/4 to 65 3/4.
Bank and finance paper is mostly one basis point to two basis points wider.
Posted in Uncategorized | Comments Off on Corporate Bonds
Monday, November 17th, 2014
Mortgages are anywhere from a + tighter to Treasuries to 2+ tighter.The higher coupons are lagging and 3 s and 3 1/2s are leading the way forward. One dealer wrote that he thinks the next trade in that market is a year end cleansing and risk reduction trade. Spreads are ...
Posted in Uncategorized | Comments Off on MBS
Monday, November 17th, 2014
Via Stephen Stanley at Amherst Pierpont Securities:
Industrial production slipped by 0.1% in October, well below expectations. Interestingly, the shortfall is mainly a function of declines (-0.9% and -0.7% respectively) in mining and utilities. Manufacturing output rose by 0.2% last month, which is actually slightly stronger than I had anticipated, despite ...
Posted in Uncategorized | Comments Off on Industrial Production
Monday, November 17th, 2014
This is from professor Jonathan Turley's legal blog Res Ipsa Loquitur from which I usually post anti Obama messages. In this instance Professor Turley writes about the chilling justification of rape by ISIS fighters who claim that rape by ISIS fighters is justified under their twisted interpretation of their religion.
Via ...
Posted in Uncategorized | Comments Off on Chilling Article