Archive for January, 2015

January 07 2015

Wednesday, January 7th, 2015

Prices of Treasury coupon securities have slumped back to earth this morning in an indication that gravity is still a force and nothing can rise forever. Headline inflation in Europe fell more than expected but the core rate increased slightly more than expected and that took some of the edge ...

Goldman Sachs on Timing of Rate Hikes

Wednesday, January 7th, 2015

Via a fully paid up subscriber: GS on Fed: Hatzius comments on timing of first Fed hike getting attention. He says their baseline expectation is a modest decline in core PCE inflation to 1.3% and a September 2015 liftoff in the funds rate. However, although these forecasts are below the consensus, as well as ...

Corporate Bond Trading Yesterday

Wednesday, January 7th, 2015

Via Bloomberg: IG CREDIT: Highest Trading Vol. Since Dec. 9; EIB, IADB to Price 2015-01-07 10:47:39.373 GMT By Robert Elson (Bloomberg) -- The final Trace count for secondary trading was $16.5b, the highest since $17b on Dec. 9, vs $11.8b Monday. * 144a trading added $2.6b of IG volume vs $2.3b * Most active issues longer than ...

Eclectic Topics Via Merrill Lynch

Tuesday, January 6th, 2015

Via Merrill Lynch Research: 10-year interest rates incredibly plunged to 1.88% intraday on plunging oil prices. The decline in risk assets highlights that markets extrapolate economic weakness from the decline in oil. What breaks this cycle is when data confirm the robustness of strong US activity levels to global weakness. Drilling through 2%. On ...

FINRA to Investigate Bond market trading Practices

Tuesday, January 6th, 2015

According to this FT story FINRA will investigate trading practices in the bond market and their impact on retail investors. The agency is concerned about liquidity and how that will effect retail investors. I am not in favor of abusing Mom and Pop from Hicksville but given that balance sheet ...

Everything You Need to Know About Corporate Bond Issuance in 2014

Tuesday, January 6th, 2015

Via Bloomberg: =============================================================================  IG CREDIT: 2014 Full Stats and Recap 2015-01-05 13:30:00.0 GMTBy Lisa Loray (Bloomberg) -- $1.395t priced from 1,122 issuers in 1,781 tranches in 2014. * Jumbo deals: * $17.0b MDT 7-part on 12/01 * $12.0b AAPL 7-part on 04/29 * $10.0b ORCL 7-part on 06/30 * $8.5b PETBRA 6-part on 03/10 * $8.0b CSCO 7-part on 02/24 * $8.0b ...

Trenchant Analysis

Tuesday, January 6th, 2015

The author is a former colleague and friend and writes great stuff which always makes you think. Via Richard Gilhooly at TDSecurities: The panic is starting to set in as the market re-assesses recent developments in the light of a hawkish FOMC and an ECB that continues to drag its feet, while ...

Collapsing oil Prices Bring layoffs

Tuesday, January 6th, 2015

Via the WSJ: Business U.S. Steel Lays Off 614 Because of Low Oil Prices Steel Maker Idles Ohio Plant That Makes Pipes for Oil Exploration, Drilling John W. Miller Updated Jan. 6, 2015 11:38 a.m. ET PITTSBURGH—Citing the collapse in global oil prices, U.S. Steel Corp. will idle its plant in Lorain, Ohio, laying off 614 ...

New Issue Calendar Today

Tuesday, January 6th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-01-06 15:12:47.994 GMT By Greg Chang (Bloomberg) -- The following is a list of new issues expected to price today: * Rentenbank $2b Aaa/AAA * 10Y Global * Final Spread MS+9 vs IPT MS+10 area * Books: Barclays, C, DB, TD * Books: Barclays, C, DB, ...

Morning Miscellany

Tuesday, January 6th, 2015

The Treasury market continues to rally with 10 year yields piercing 1.97 percent. The yield curve continues to flatten with 5s 10s and 5s 30s 1basis point to 1.5 basis points flatter than 500AM levels. Dealers report central bank buyers in the 3 year sector and insurance company buying in the ...