Archive for May, 2015
Tuesday, May 5th, 2015
This was the mega deal of the day in corporates and it priced late in the day. It will be interesting to see how the various tranches fare tomorrow in secondary trading.
Via Bloomberg:
BFW 05/05 20:23 *ABBVIE SELLS $3B 3Y AT +85, $3.75B 5Y +105, $1B LONG 7Y +130
*ABBVIE SELLS $3.75B ...
Posted in Uncategorized | Comments Off on AbbVie Pricing
Tuesday, May 5th, 2015
Via Merrill Lynch Research:
The global un-reach from yield trade. That investors are un-reaching from yield is no surprise - after all the title of our outlook piece was "2015 US High Grade Outlook: Un-reaching from yield" - see here. US interest rates are going up (+26bps for 10-year Treasuries since ...
Posted in Uncategorized | Comments Off on Merrill Lynch Research on Corporate Spreads (and other stuff too)
Tuesday, May 5th, 2015
Last evening I published this piece on a Bloomberg article which detailed Congressional as well as DOJ inquiries into a leak of confidential information from fortress Fed to Medley Advisers. The drumbeat has picked up a bit on this story as this evening the WSJ has raised the issue.
I am ...
Posted in Uncategorized | Comments Off on Yellen and Medley Advisers
Tuesday, May 5th, 2015
Via Bloomberg:
BFW 05/05 16:31 *ABBVIE $3B 3Y LAUNCH AT +85, $3.75B 5Y +105, $1B LONG 7Y +130
BFW 05/05 16:30 *ABBVIE TOTAL DEBT OFFERING SIZE $16.7B
*ABBVIE $3.75B 10Y LAUNCH AT +145, $2.5B 20Y +165,$2.7B 30Y +180
2015-05-05 16:31:51.256 GMT
Information from person familiar with the matter, who is not authorized to speak publicly ...
Posted in Uncategorized | Comments Off on Mega Corporate Deal launch
Tuesday, May 5th, 2015
Paul Volcker crushed inflation when he made subduing it the FOMCs principal goal. That ushered in a Golden Age of central banking and led to the relative prosperity of the last three decades. Bloomberg reports that some pundits and prognosticators are now calling for central banks to incite some inflation ...
Posted in Uncategorized | Comments Off on The Anti Volcker Maneuver
Tuesday, May 5th, 2015
Via Robert Sinche at Amherst Pierpont Securities:
GREECE: Scheduled to make a small interest payment of about €200mn to the IMF. The BBerg consensus expects the February UR to slip to 25.6% from 25.7% in January and a peak of 27.9% in September 2013.
CHINA: HSBC/Markit Services and Composite PMIs for April; ...
Posted in Uncategorized | Comments Off on Overnight Preview
Tuesday, May 5th, 2015
Interesting Little tidbit via Bloomberg:
IG CREDIT: Duration Buyers of New Issues on Strike, Brean Says
2015-05-05 15:34:53.783 GMT
By Katherine Chiglinsky
(Bloomberg) -- Buyers “who substituted long-dated
Treasuries with corporates” appear to be less active, a
conclusion supported by recent outflows from iShares iBoxx $
Investment Grade Corporate Bond ETF (LQD US), Brean Capital
strategist Peter Tchir ...
Posted in Uncategorized | Comments Off on Buyers Strike
Tuesday, May 5th, 2015
Dealers report strong overseas interest in 2 year sector and robust purchases of 5 year sector by domestic end users. One trader noted that the 200 day moving average on 10s is 2.19 and he expected to see solid interest in front of that level. The same trader also noted ...
Posted in Uncategorized | Comments Off on Treasury Update
Tuesday, May 5th, 2015
Via Stephen Stanley at Amherst Pierpont Securities:
The March trade balance figures are an extremely messy set of data. The crux of the forecast for March hinged on how much of the accumulated backlog of goods at West Coast ports through February would be processed in March. Apparently, the dockworkers, who ...
Posted in Uncategorized | Comments Off on Trade balance Analysis
Tuesday, May 5th, 2015
This is a guest post from my friend and former colleague Steve Liddy:
Good piece here...general conclusion is the liquidity issues, specific to the UST market, are more a consequence of Central Bank actions and the 'herd mentality' of the Asset Management community, which has seen a huge jump in AUM, ...
Posted in Uncategorized | Comments Off on Liquidity