Archive for May, 2015

Today’s New Issue Corporate Calendar

Wednesday, May 20th, 2015

Via Bloomberg: List of New IG Issues Expected to Price in U.S. Today 2015-05-20 14:00:58.363 GMT By Allan Lopez (Bloomberg) -- 7 new issues expected to price today: * American Express Credit Corp. $benchmark A2/A- * * 5Y fxd and/or FRN * IPT 5Y fxd +low 90s, 5Y FRN 3mL equivalent * Books: BofAML, Barclays, DB, GS * McGraw Hill ...

Transportation Problem

Wednesday, May 20th, 2015

This is for the Dow theorists in the room. Via a fully paid up subscriber: Dow Transportation index is struggling  The index is below the 200 day ma, with the 50 day having crossed the 100 day and approaching the 200 day.  Sell in May and go away?

Negative in Portugal

Wednesday, May 20th, 2015

Portugal was one of the original PIGS (Portugal Italy Greece and Spain) but has since regained its footing as evidenced by this article from the WSJ which says that formerly penurious sovereign is now issuing six month debt at negative rates. I know the world has changed in myriad ways but ...

FX

Wednesday, May 20th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar Extends Gains Ahead of FOMC Minutes - Investors have learned this week that a seasonal quirk probably lies behind part of the repeated weakness reported in Q1 growth - The ECB officials have indicated that the asset purchases will be front-loaded in May and ...

What to Watch for Today

Wednesday, May 20th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * * 7:00am: MBA Mortgage Applications, May 15 (prior -3.5%) * Central Banks * * 2:00pm: U.S. Fed releases April 28-29 meeting minutes * 9:30pm: Reserve Bank of Australia issues FX market data

Treasury Flows Overnight

Wednesday, May 20th, 2015

Central bank sellers of 3s. Central bank sellers of 5s through 10s partially offset by small Japanese clients buying that sector. European end users buying off the run long bonds in small size. Asian real money buying yieldy spread product in 10 year sector.

Fed Minutes

Tuesday, May 19th, 2015

Tomorrow the Fed will release minutes of the last FOMC meeting in late April. The FT has a collection of comments by economists on what those minutes might contain. Via the FT: After its April meeting, the Federal Reserve downgraded its view of the labour market and said the US economy had ...

Eclectic Topics

Tuesday, May 19th, 2015

In this research piece by Merrill Lynch they note that some high grade bond spreads are starting to crack. Via Merrill Lynch: Strong bounce in US housing starts and building permits for April ignited a big sell-off in Treasuries. with the sell-off in bonds over the past month, we are now close to ...

Faulty Seasonals and Q1 Growth

Tuesday, May 19th, 2015

Justin Wolfers is an economics Professor at the University of Michigan and a columnist at the NYTimes (excellent) blog Upshot. This is a very long post published today on (what he terms) the "wonk war" on the topic of growth in Q1. it cites studies by various Federal Reserve and ...

Yellen on Financial Stability

Tuesday, May 19th, 2015

Janet Yellen spoke today to the (Orwellain named) Financial Stability Oversight Council and spoke about risks to the financial system. The Bloomberg article which I will append at the end of this paragraph notes that she expressed concerns about clearinghouses which now warehouse counterparty risk in the derivative market. The ...