Archive for November, 2014
Wednesday, November 5th, 2014
The WSJ reports that the Fed has adopted a rule that would effectively bar mega bank mergers as it would not permit mergers in which the new firm has more than 10 percent of financial sector liabilities.
I do not understand this as these same regulators allowed merger after merger which ...
Posted in Uncategorized | Comments Off on Too Big To Fail
Wednesday, November 5th, 2014
Swap spreads are a tad wider today. Two year spreads are out 1/2 and 5 year spreads are out 1/4. Ten year spreads are out 1/2 and 30 year spreads are out 1/4. Fast money has been a better payer in the belly.
Posted in Uncategorized | Comments Off on Swap Spreads
Wednesday, November 5th, 2014
The Treasury market has been very quiet this morning. The main topic for discussion has been the cut in the size of the 2 year note and 3 year note which the Treasury announced this morning. That has steepened the curve somewhat from the very narrow levels which prevailed when ...
Posted in Uncategorized | Comments Off on Treasury and TIPS Update
Wednesday, November 5th, 2014
This is as deep and insightful article as you will find anywhere on the near term and longer term mechanics of financing the US Government. I urge you to read this one as it is particularly illuminating on the problems which will confront the Treasury when the FOMC is raising ...
Posted in Uncategorized | Comments Off on Treasury Refunding Analysis : A Must Read
Wednesday, November 5th, 2014
Via Bloomberg:
IG CREDIT: List of New Issues Expected to Price in U.S. Today
2014-11-05 15:00:07.304 GMT
By Greg Chang
Nov. 5 (Bloomberg) -- The following is a list of new
issues expected to price today.
* Mubdala GE Capital Ltd. $benchmark Baa2/A
* 5Y 144A
* IPT +150-162.5
* Books: Barclays, C, FGB, HSBC, NATIXIS
* Books: Barclays, C, ...
Posted in Uncategorized | Comments Off on New Issues Expected to Price Today
Wednesday, November 5th, 2014
Corporates are reveling in the risk on appetite coursing through the markets this morning.
The IG 23 is tighter by 3/4 at 64 to 64 1/2.
Long dated financials are 1 basis point to 2 basis points tighter.
Posted in Uncategorized | Comments Off on Corporate Bond Spreads
Wednesday, November 5th, 2014
MBS are 3 to 5 tighter to Treasuries this morning. One dealer reports chunky overseas buying as the reason. Another dealer cites reduced origination and a consequent shortage of bonds.
Posted in Uncategorized | 1 Comment »
Wednesday, November 5th, 2014
The Treasury announced the refunding package this morning and each quarter when they do that the Treasury Borrowing Advisory Committee issues a report.
There is an interesting paragraph in today's report in which the Committee comments on the Great Short Squeeze of October 15. The members cited four factors for ...
Posted in Uncategorized | 1 Comment »
Wednesday, November 5th, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 7:00am: MBA Mortgage Applications, Oct. 31 (prior -6.6%)
* 8:15am: ADP Employment Change, Oct., est. 214k (prior 213k)
* 9:45am: Markit US Services PMI, Oct. final (prior 57.3)
* Markit US Composite PMI, Oct. final, est. 58 (prior
57.4)
* Markit US Composite PMI, Oct. final, ...
Posted in Uncategorized | Comments Off on What to Watch for Today
Wednesday, November 5th, 2014
The plummeting price of gold now has producers selling at losses.
Via Bloomberg:
Plunging Gold Price Has Mining Companies Selling at Loss
By Liezel Hill and Kevin Crowley Nov 5, 2014 6:12 AM ET
Save
The latest decline in the price of gold is saddling higher-cost producers with losses on every ounce mined, ...
Posted in Uncategorized | Comments Off on Au(ch): The Plummeting Price of Gold Hurts