Archive for March, 2015

ETFs as a Source of Liquidity

Monday, March 2nd, 2015

I just found this in a site called ETF Trends. Money is pouring into corporate bond ETFs and some of the buyers have turned to the funds because they believe that there is increased liquidity in that instrument. That is an extremely facile and simplistic view as the fund which manages ...

What to Watch Today

Monday, March 2nd, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: Personal Income, Jan., est. 0.4% (prior 0.3%) * Personal Spending, Jan., est. -0.1% (prior -0.3%) * PCE Deflator m/m, Jan., est. -0.5% (prior -0.2%) * PCE Deflator y/y, Jan., est. 0.1% (prior 0.7%) * PCE Core m/m, Jan., est. 0.1% (prior 0%) * PCE Core ...

FX

Monday, March 2nd, 2015

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead - This week, there will be four major central bank meetings (BOE, ECB, RBA and BOC) and the US employment report - The PBOC explained the rate cut on Sunday in terms of a decline in inflation, which results in an ...

Secondary Corporate Bond Trading on Friday

Monday, March 2nd, 2015

Via Bloomberg: IG CREDIT: PETBRA Issues Led Trading; ACT May Be Today 2015-03-02 10:40:33.106 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $16.4b Friday vs $17.8b Thursday, $13.4b the previous Friday. 10-DMA $15.9b. * 144a trading added $1.8b of IG volume Friday vs $2b Thursday, $2.4b last Friday * Most active issues ...

Overnight Flow

Monday, March 2nd, 2015

The Treasury market is about a basis point cheaper across the curve when compared to Friday closing levels. Within that context the moves along the curve are miniscule and where the curve has moved it is in tenths of a basis point. Dealers report Japanese pension fund buyers of 2s 5s ...

Wage Pressures and the Fed

Sunday, March 1st, 2015

Via the WSJ: U.S. bond investors are behaving as if they have all the time in the world. They don’t. The Fed is gearing up for its first rate increase in eight years, a potential killjoy for fixed-income markets. But historically low yields in the U.S. Treasury market suggest investors are betting ...

Making Piketty’s Case

Sunday, March 1st, 2015

I generally decry the folks who tout income inequality and the disaster that is for the middle class. The Progressive left advocates taking from those who have and spreading the wealth around ( to quote the incumbent President when he was seeking office and conversing with Joe the Plumber) to ...