Archive for November, 2014

FX

Thursday, November 20th, 2014

Via Marc Chandler at Brown Brothers Harriman: Weaker Euro-Area PMI Weighs on Markets - The FOMC minutes revealed that some officials were more concerned about a further breakdown in long-term inflation expectations than they were about growth faltering - As most had already assumed, the FOMC is not in any hurry to raise ...

November 20 2014 Opening

Thursday, November 20th, 2014

Prices of Treasury coupon securities have surged in overnight trading as a gaggle of European economic data reinforces the view that the economy on the continent is decidedly less than festive. The Markit group releases data each month on composite PMI, manufacturing PMI and services PMI. So if you observe ...

Guest Post on Credit Spreads

Thursday, November 20th, 2014

This is an excellent piece on credit spreads by my friend and former colleague Steve Liddy. He wrote this November 18 at about 1100PM but the thrust of it is still quite valid and worthwhile. Today was one of those days where life intervened and I did light blogging only ...

Alibaba Price Talk

Wednesday, November 19th, 2014

ALIBABA GROUP HOLDING LIMITED (BABA) $BENCHMARK 3YR FXD-FRN / 5YR FXD-FRN / 7YR / 10YR / 20YR A1/A+/A+ 144A W/ REG S W/ RR SENIOR UNSECURED NOTES 5YR:  1MOS PAR CALL          PRICE TALK:  3YR  +80A 7YR:  2MOS PAR CALL                        5YR  +110A 10YR: 3MOS ...

FOMC Analysis

Wednesday, November 19th, 2014

Via Eric Green at TDSecurities: The FOMC minutes from the October 29th meeting reflected a balanced discussion on economic concerns that feels less hawkish than the post-meeting statement, one that emphasized diminished labor slack and a view that the roll over in inflation expectations is likely temporary. The minutes by their ...

Ali Baba

Wednesday, November 19th, 2014

Via Bloomberg: Alibaba Group to Sell $Benchmark Debt in Seven-Part Offering Nov. 19 (Bloomberg) -- May price tomorrow in New York afternoon. * Sr unsecured notes * 144A with registration rights / Reg S * Proceeds to repay certain of our existing credit facilities and for general corporate purposes * Make-Whole-Calls * Par call 1 month prior to ...

Merrill Lynch Research on Eclectic Topics

Tuesday, November 18th, 2014

Via Merrill Lynch: Stable leverage, less cash in 3Q. With most companies having reported 3Q results, we update our estimate of US high grade non-financial issuer fundamentals. Note that at this point the estimates are preliminary, based on the actual values when available and projections for credits that have not yet ...

Bear Market in Iron Ore

Tuesday, November 18th, 2014

Via Bloomberg: Iron Ore Bear Market Deepens as China Home Prices Spur Concern By Jasmine Ng Nov 18, 2014 7:10 PM ET Iron ore extended a tumble to the lowest level in more than five years as declining home prices in China added to concern that an economic slowdown in the biggest buyer ...

More on TIPS

Tuesday, November 18th, 2014

Via the FT: Weak energy prices lower US inflation expectations Michael Mackenzie in New YorkAuthor alerts Long-term market measures of US inflation touched a three-year low on Tuesday with weaker oil prices and a stronger dollar dulling investor appetite for owning inflation insurance. The 10-year US break-even inflation rate currently predicts consumer prices will ...

TIPS

Tuesday, November 18th, 2014

TIPS continue to lag in the Treasury market and face a major test on Thursday when the Treasury auctions a batch of 10 year TIPS. Breakevens are closing at new cycle lows today. Five year breaks are at 153 versus 154 at this time yesterday. Ten year breaks have edged lower ...