Archive for February, 2015

New Issues Today

Wednesday, February 4th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-02-04 15:01:00.1 GMT By Greg Chang (Bloomberg) -- The following is a list of new issues expected to price today: * Kommunalbanken AS $500m Aaa/AAA * 10Y; 144A/Reg S * Spread set at MS +17 vs Guidance MS +18 area vs IPT MS +high teens * ...

Research Round Up

Wednesday, February 4th, 2015

Via Bloomberg: UST MORNING CALL: Recent Reversal ‘Largely’ Due to Positioning 2015-02-04 13:17:25.177 GMT By Monika Grabek and Madeline McMahon (Bloomberg) -- “Global markets remain in the throes of violent repositioning moves as conviction remains low and recent momentum is called into question,” which has “baffled” traders and investors as “there has been no fundamental shift to global ...

Refunding Announcement

Wednesday, February 4th, 2015

Via Stephen Stanley at Amherst Pierpont Securities: This Treasury refunding announcement was as quiet as they come.  The refunding auction sizes were unchanged.  The statement notes that “based on current fiscal forecasts, coupon auction sizes will remain steady going forward.”  So, that’s 3 months of steady coupon auction sizes.  Given the ...

What to Watch for Today

Wednesday, February 4th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 7:00am: MBA Mortgage Applications, Jan. 30 (prior -3.2%) * 8:15am: ADP Employment Change, Jan., est. 220k (prior 241k) * 9:45am: Markit U.S. Composite PMI, Jan. final (prior 54.2) * Markit U.S. Services PMI, Jan. final, est. 54.1 (prior 54) * Markit U.S. Services PMI, Jan. final, ...

FX

Wednesday, February 4th, 2015

Via mark Chandler at Brown Brothers Harriman: Yesterday's Euro-Phoria Eases, Market Awaits ADP - The bout of long dollar liquidation spurred by optimism towards Greece has largely faded today - The PBOC announced a 0.5 percentage point cut in required reserves even as it fixed the yuan 2% stronger than yesterday’s spot close - ...

SubPrime Redux

Wednesday, February 4th, 2015

This is from a trade publication nationalmortgagenews.com. Why Subprime Mortgage Lending Is Ready for a Comeback by Brad Finkelstein FEB 2, 2015 3:22pm ET The widespread return of the subprime mortgage business will be the big event for the mortgage industry in 2015. At first glance, this may seem like one of the more wild ...

(Very Heavy) Corporate Bond Trading Yesterday

Wednesday, February 4th, 2015

In his daily note on corporate bond trading Bob Elson at Bloomberg reports that volume yesterday was the heaviest since inception of the TRACE system in 2005.   Via Bloomberg: IG CREDIT: Highest Trading Volume in History of Trace Data 2015-02-04 11:08:29.619 GMT By Robert Elson (Bloomberg) -- Trace count for secondary trading closed at $21.4b vs ...

Negative Yields on Corporate Bonds

Wednesday, February 4th, 2015

It is always difficult for me to grapple with the concept of negative yields on government bonds. It happened here in the US when Lehman Brothers collapsed and was confined to the Treasury bill market. Fear was so rampant that investors wanted certainty that they would be certain of their ...

Goldman Sachs on Two Year Note in Germany

Tuesday, February 3rd, 2015

This is via a fully paid up subscriber across the pond: SCHATZ: Sources confirm a Goldman Sachs sales and trading desk note is indeed doing the rounds titled "the bullish case for the German front end (Schatz)" and expect levels of -25bp to -30bp as central scenario with -40bp realistic. "Key ...

Plumbing Problem

Tuesday, February 3rd, 2015

Via Jon Hilsenrath at the WSJ: Grand Central: New York Fed Tries to Address Plumbing Problems in Fed Funds Market The Federal Reserve Bank of New York announced two changes in the way it tracks short-term interest rates. It will broaden the number of firms it uses to make daily calculations of ...