Archive for March, 2015

What to Watch for Today

Tuesday, March 3rd, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 9:45am: ISM New York, Feb. (prior 44.5) * 10:00am: IBD/TIPP Economic Optimism, March, est. 47.5 (prior 47.5) * Wards Total Vehicle Sales, Feb., est. 16.7m (prior 16.56m) * Wards Domestic Vehicle Sales, Feb., est. 13.4m (prior 13.31m) Central Banks * 10:00am: Senate Banking Committee hearing on Fed reform * ...

Actavis Order Book

Tuesday, March 3rd, 2015

Via Bloomberg: Actavis Order Book for 9-Part Deal Said to Be Around $90b 2015-03-03 11:08:42.30 GMT By James Holloway (Bloomberg) -- Information from person familiar with the matter, who is not authorized to speak publicly and asked not to be identified. * Deal to launch and price today; click here for IPTs

Gas Dividend being Saved, Not Spent

Tuesday, March 3rd, 2015

Via the WSJ: By Josh Mitchell March 2, 2015 6:04 p.m. ET 3 COMMENTS CENTERVILLE, Tenn.—Few Americans are benefiting from the swift decline in gasoline prices as much as Rodger Hedrick and the 24,000 other residents of Hickman County. Mr. Hedrick is a typical worker in this sprawling, rural community southwest of Nashville: He commutes roughly ...

Huge Corporate Deal

Tuesday, March 3rd, 2015

Yesterday pharmaceutical company Actavis announced a huge nine tranche corporate deal. The deal is scheduled to raise about $20 billion and will price sometime today.

Secondary market Corporate Bond Trading Yesterday

Tuesday, March 3rd, 2015

Via Bloomberg: IG CREDIT: Spreads Hit New 2015 Tights; ACT Set to Price 2015-03-03 10:46:06.385 GMT By Robert Elson (Bloomberg) -- FINRA’s Trace secondary IG trading statistics are not available this morning. * BofAML IG Master Index at +131, a new tight for 2015, vs +132; 2014 range was +151, seen Dec 16; +106, the low and tightest ...

Overnight Flows

Tuesday, March 3rd, 2015

The entire Treasury curve is now cheaper than it was prior to the Yellen testimony last week. In overnight trading the 5 year note took a battering as it cheapened 2 basis points versus 2s (now 93.4 vs 91.3 last evening) and it cheapened versus 2s and 10s. That fly ...

Hillary Clinton Email Problem

Monday, March 2nd, 2015

The NYTimes is leading with a piece on Hillary Rodham Clinton who it seems chose to conduct her official business while Secretary of State via her personal email. How would that go over with the Department of Justice if a bond dealer salesman had chosen to do that? I doubt ...

Merrill Lynch on Eclectic Topics

Monday, March 2nd, 2015

Via Merrill Lynch Research: Dudley's remarks highlight why we should expect the coming rate hiking cycle to be much less favorable than the previous one. Clearly if Dudley's views are shared the Fed is going to want to see higher long term interest rates once they start hiking. This is one reason we ...

More on the Rush to ETFs

Monday, March 2nd, 2015

This morning  I posted this article on  the surge of assets flowing to corporate bond ETFs. Here is an WSJ piece on the same story: Via the WSJ: By KATY BURNE March 1, 2015 6:02 p.m. ET 17 COMMENTS Institutions are piling into exchange-traded bond funds at the fastest pace on record, driven by forces ...

Personal Income and Spending

Monday, March 2nd, 2015

Via Millan Mulraine at TDSecurities Personal income rose at a relatively decent 0.3% m/m pace in January, though it fell short of the market's consensus for a 0.4% m/m gain. This marks the 12 consecutive monthly gain in this indicator, and the rise was driven by the strong 0.6% m/m gain ...