Archive for February, 2015

Hot Dog Bond

Friday, February 27th, 2015

Check out the strange use of proceeds. They make a great hot dog but lending a company money so they can pay a dividend does not sound like a great idea. Via Bloomberg: Nathan’s Famous to Sell $125m 5NC2.5 Sr Sec Notes Today 2015-02-27 13:30:48.707 GMT By Gowri Gurumurthy (Bloomberg) -- Issuer: Nathan’s Famous, Inc * ...

Goldman on Credit

Friday, February 27th, 2015

Via Bloomberg: U.S. Credit Rally to Continue Amid ‘Least Bad Yields’: Goldman 2015-02-27 12:42:02.410 GMT By James Holloway (Bloomberg) -- Goldman tactically bullish on U.S. credit, chief credit strategist Charles Himmelberg writes in client note, with risk appetite supported by following factors: * Sluggish global growth and low global yields remain driver of hunt for yield * “Indeed, the ...

Corporate Bonds Channel George Costanza

Friday, February 27th, 2015

If this were a Seinfeld episode George Costanza would be lamenting shrinkage. This is the world of bond trading so there is no neurotic George but market participants should decry the shrinkage in dealer balance sheets devoted to investment grade corporate bonds. Issuance in the first four days of this ...

FX

Friday, February 27th, 2015

Via Marc Chandler at Brown Brothers Harriman: Stronger European Data Weighs on the Dollar - Sweden reported Q4 that was twice the consensus expectations, suggesting that the Riksbank will not be in a hurry to extend current accommodative efforts - The PBOC fixed the USD/CNY rate sharply higher today, the largest daily move ...

What to Watch for Today

Friday, February 27th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: GDP Annualized q/q, 4Q revised, est. 2% (prior 2.6%) * Personal Consumption, 4Q revised, est. 4.3% (prior 4.3%) * GDP Price Index, 4Q revised, est. 0% (prior 0%) * Core PCE q/q, 4Q revised, est. 1.1% (prior 1.1%) * Core PCE q/q, 4Q revised, ...

Falling Earnings

Friday, February 27th, 2015

This post is from a Barron's article which draws extensively from an Albert Edwards piece I posted recently. It discusses earnings (weak) and record highs in stocks while most global central banks are easing to counter weak growth. Via Barron's: Falling Earnings Forecasts Belie New Highs in Stocks Yellen’s assurances push stocks to ...

Mutual Fund Flows and Other Stuff

Thursday, February 26th, 2015

Via Bank America Merrill Lynch Research: Inflows to high grade, high yield and stocks all declined last week relative to the prior week. Inflows to high grade declined to $2.53bn from $3.18bn in the prior week, with outflow from short-term funds of $0.29bn. HY inflow was $1.04bn, down from a $2.9bn average pace ...

Seven Year Result

Thursday, February 26th, 2015

Via CRT Capital: *** A lackluster takedown with a 1.1 bp tail and non-dealers awarded 63% vs. 64% norms. *** * 7-year auction stops at 1.834% vs. 1.823% 1pm bid WI. * Dealers were awarded 37.1% vs. 36% average of last four 7-year auctions. * Indirects get 52.3% vs. 52% norm. * Directs take 10.2% ...

Very large Bond Deal

Thursday, February 26th, 2015

A fully paid up subscriber says this deal could launch one day next week. Via Bloomberg: Actavis Plans $22 Billion Bond Sale Backing Allergan Deal (2) 2015-02-19 23:51:57.293 GMT (Updates with investor comment in fourth paragraph.) By Elliott Stam (Bloomberg) -- Actavis Plc plans to sell as much as $22 billion in bonds to finance its purchase ...

Seven Year Auction

Thursday, February 26th, 2015

Via CRT Capital: We're apprehensive about the prospects for this afternoon's 7-year auction and anticipate a larger concession either ahead of 1 pm or at the auction itself via a tail. While the market is a bit weaker this morning, we're viewing the recent string of auction tails for 7s as ...