Archive for December, 2014

FX

Tuesday, December 16th, 2014

This is the note from Marc Chandler which I post each day. Of special interest today is his comments on Russia. He reports that Russia has $680 billion of external debt and he also notes that in 1998 interests rates as high as 15- percent failed to halt the ruble's ...

On the Russian Rate Hike

Tuesday, December 16th, 2014

This is an excerpt from TDSecurities overnight note to customers which discusses the rate hike by Russia to defend the ruble (which has failed ignominiously). Via TDSecurities: RUB The Central Bank of Russia decided to show the market its bazooka last night. In an emergency meeting around 10:00PM yesterday, the CBR hiked the key ...

China Treasury Holdings Decine

Tuesday, December 16th, 2014

Via Bloomberg: China’s Treasury Holdings Fall to Lowest Since February 2013 By Jeanna Smialek Dec 15, 2014 5:53 PM ET 410 Comments Email Print Facebook Twitter Google+ LinkedIn Save China’s holdings of U.S. Treasuries fell to a 20-month low in October, ...

Corporate New Issue Calendar

Tuesday, December 16th, 2014

This is an informative note via Bloomberg which lists companies likely to issue in the coming weeks: IG CREDIT PIPELINE: BAC, JPM, GE Are Historical January Issuers 2014-12-16 10:22:51.681 GMT By Robert Elson (Bloomberg) -- The following deals may be added to the IG calendar in the coming days, weeks, months: * BAC historically issues in ...

December 16 2014 Opening

Tuesday, December 16th, 2014

Prices of Treasury coupon securities have registered solid gains in the overnight session as a oil continues its plunge. In my opinion there is a bit of a risk off trade at work here as a sense of panic develops in the markets. One only has to observe the 7 ...

Secondary Market Corp Bond Trading Yesterday

Tuesday, December 16th, 2014

Via Bloomberg: CREDIT: Spreads Continue to New Record Wides for 2014 2014-12-16 10:40:30.43 GMT By Robert Elson (Bloomberg) -- The final Trace count for secondary trading was $11.6b vs $10.1b Friday and $16.2b the previous Monday. 10- DMA at $15.5b. * 144a trading added another $1.6b of IG volume * Jan and April 2015 issues from CS, BAC ...

Big Jump in German ZEW

Tuesday, December 16th, 2014

Via the FT: Confidence in Europe's largest economy has zoomed up to a level not seen since the spring, according to an influential indicator. The Zew Indicator of Economic Sentiment for Germany gained more than 23 points to stand at 34.9, from 11.5 in October. The figure, compiled from the views of more ...

Collapsing EM Currencies: An Historical Perspective

Monday, December 15th, 2014

Richard Gilhooly of TDSecurities discusses the collapse in EM currencies in 1998 and implications for the market today: Via Richard Gilhooly: Given the collapse in EM currencies in recent weeks, with quite a few stories circulating comparing the current malaise to the 1998 developments, it is worth considering the possible implications for ...

Incipient Wage Pressure?

Monday, December 15th, 2014

The head of the United Auto Workers union is seeking to dismantle the two tiered wage system currently in place in the auto business. The union and the companies negotiated that plan during the bankruptcy proceedings at the height of the financial crisis when the auto companies received a government ...

Eclectic Topics

Monday, December 15th, 2014

Via Bank of America Merrill Lynch Research: US consumer confidence is finally roaring back to pre-crisis levels on the collapse in gas prices. But we have to respect the markets - that means further decline in oil the risk of further risk-off. This is not the time to set tactical longs and we ...