Archive for February, 2015
Tuesday, February 24th, 2015
Via Merrill Lynch Research:
A Fed maintaining ZIRP for a longer period of time is bullish for credit spreads, whereas earlier liftoff is bearish.
However, a bearish sentiment for spreads would re-appear if rates again decline much further inside 2% on the 10-year.
This especially as supply volumes accelerate into March.
ZIRP is friend, ...
Posted in Uncategorized | Comments Off on Merrill Lynch on Credit Spreads and Other Stuff
Tuesday, February 24th, 2015
Via the FT:
CompaniesHewlett-Packard cuts outlook amid currency swings
21 minutes ago
Another name added to the long-list of US multinationals struggling with the dollar's strength.
Hewlett-Packard slashed its full-year earnings guidance by more than a third on Tuesday as currency swings weigh on its results.
The PC manufacturer said net earnings would range between ...
Posted in Uncategorized | 1 Comment »
Tuesday, February 24th, 2015
Via Stephen Stanley at Amherst Pierpont Securities:
On the economy, Yellen’s testimony repeated the general thrust of the January FOMC minutes. With regards to the two parts of the dual mandate, the verdict is mixed. Yellen noted that the employment situation “has been improving along many dimensions.” She concludes with “considerable ...
Posted in Uncategorized | Comments Off on Yellen Recap
Monday, February 23rd, 2015
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 8:30am: Chicago Fed Nat Activity Index, Jan., est. 0.05
(prior -0.05)
* 10:00am: Existing Home Sales, Jan., est. 4.95m (prior 5.04m)
* Existing Home Sales m/m, Jan., est. -1.8% (prior 2.4%)
* Existing Home Sales m/m, Jan., est. -1.8% (prior 2.4%)</li></ul>
* 10:30am: Dallas Fed Mfg ...
Posted in Uncategorized | Comments Off on What to Watch for Today
Monday, February 23rd, 2015
Via Marc Chandler at Brown Brothers Harriman:
Drivers for the Week Ahead
- The Greek issue has been sufficiently resolved for now, so investors' focus will shift to deflation, economic recovery and the Fed
- The cyclical recoveries in the euro area and Japan continued into the early part of this year
- We ...
Posted in Uncategorized | Comments Off on FX
Monday, February 23rd, 2015
Via Bloomberg:
IG CREDIT: Client Flows in Long Bonds Led Trading Session
2015-02-23 10:59:42.575 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $13.4b Friday vs $17.1b Thursday, $13.1b last Friday.
* 10-DMA $16.5b
* 144a trading added $2.4b of IG volume vs $2b Thursday, $1.5b
the previous Friday
* Most active issues ...
Posted in Uncategorized | Comments Off on Secondary market Corporate Bond Trading Friday
Sunday, February 22nd, 2015
The WSJ posts an informative article on the cold weather and the economy. The article posits that the cold weather and storms this year will not produce the same consequences as last year's successive polar vortex iterations.
Via the WSJ:
Harsh Winter Weather Yet to Take Economic Toll
Worst of this year’s storms ...
Posted in Uncategorized | Comments Off on Winter Weather
Friday, February 20th, 2015
Via Bloomberg:
IG CREDIT: Dealer Positions Fell to Record Lows, Led by HY
2015-02-20 11:23:54.689 GMT
By Robert Elson
(Bloomberg) -- Dealer positions in corporate bonds fell
$2.3b to $21.1b as of Feb. 11, a new low in the series Fed began
in April 2013. $45.9b, seen March 5, 2014 was the high for the
series Fed ...
Posted in Uncategorized | Comments Off on Pruning the Balance Sheet
Friday, February 20th, 2015
Interesting article on Greece and the vagaries of sovereign bankruptcy via the WSJ:
By
Stephen Fidler
Updated Feb. 19, 2015 6:59 p.m. ET
The Greece crisis is reinforcing a cardinal rule of sovereign-debt crises: It isn’t whether a government can pay what it owes, it’s whether it wants to.
Analysis
The new left-wing government in Greece ...
Posted in Uncategorized | 1 Comment »
Friday, February 20th, 2015
A fully paid up subscriber just forwarded this headline:
*GERMAN-LED BLOC WILLING TO LET GREECE LEAVE EURO, SCICLUNA SAYS
Scicluna is apparently the finance minister of Malta and he was opining on this topic yesterday when he was quoted suggesting that Europe might not oppose an exit from the Euro by Greece. ...
Posted in Uncategorized | 2 Comments »