Archive for June, 2015

Default Without an Exit

Monday, June 15th, 2015

This is a long but interesting article which discusses the case for a Greek default without an exit from the currency union. Via the WSJ: By Gabriele Steinhauser Updated June 15, 2015 8:00 p.m. ET BRUSSELS—As the bailout standoff between Athens and its creditors escalates, some European officials are suggesting something that was ...

Eclectic Topics

Monday, June 15th, 2015

Via Merrill Lynch Research: CDS 1, bonds 0. With the Greek debt negotiations breaking down over the weekend financial markets sold off broadly, led by Europe where 10-year Spanish government spreads widened 17bps to 159bps - the widest since last July. In response European IG credit spreads (iTraxx main) widened as ...

Ambling Towards the Cliff

Monday, June 15th, 2015

Both sides have hardened their positions in the Greek negotiations and at the moment it appears that we are headed for an ugly climax. Via the FT:   Alexis Tsipras, the Greek prime minister, vowed not to give in to demands made by his country’s international creditors, accusing them of “pillaging” Greece for ...

End of Day

Monday, June 15th, 2015

Via Ian Lyngen at CRT Capital: The Treasury market was reasonably well bid coming into the NY session with the collapse of the Greek debt negotiations the primary theme pushing yields lower. The price action persisted and was able to find additional backing in the form of the fundamentals via softer ...

Capital Controls

Monday, June 15th, 2015

These headlines came to me about 20 minutes ago when I was away from AcrosstheCurves sprawling global headquarters. Via a fully paid up subscriber: (BN) *EURO-ZONE COUNTRIES READY CAPITAL CONTROLS FOR GREECE: PAP ER +------------------------------------------------------------------------------+ BFW 06/15 17:53 *EU FIN. MINISTERS TO MEET THURS, FRI IN LUXEMBOURG:SUEDDEUTSCHE BN 06/15 17:53 *EU FIN. MINISTERS TO MEET THURS, ...

Overnight Data Preview

Monday, June 15th, 2015

Via Robert Sinche at Amherst Pierpont Securities: ECB: The European Court of Justice is scheduled to release its final ruling on the legality of the ECB’s Outright Monetary Transactions (OMT) program introduced in 2012; it is widely expected the program will be valid under the ruling. GREECE: Greek PM Tsipras is scheduled ...

New issue Corporate Calendar Today

Monday, June 15th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-06-15 14:05:03.438 GMT By Allan Lopez (Bloomberg) -- 2 new issues expected to price today: * SoCal Gas Co. $600m (will not grow) Aa2/A+ * * 3Y, 10Y first mortgage bonds * IPT 3Y +60, 10Y +100 (both area) * Books: BNP, CastleOak, CACIB, Mizuho, ...

Industrial production: Weak

Monday, June 15th, 2015

Via Stephen Stanley at Amherst Pierpont Securities: The May industrial production figures were softer than expected (again),  slipping by 0.2%, as the manufacturing sector posted a 0.2% decline last month, matching the worst performance since January.  Excluding a modest increase in the motor vehicle sector (which appears to be very strong ...

Errata

Monday, June 15th, 2015

In the previous post I wrote incorrectly that my friend Steve Liddy viewed 151-15 as a key technical level. In fact his level was 151-21 and not 151-15. I need an editor. Apologies to Steve and anyone who read that.

Technical level

Monday, June 15th, 2015

My friend Steve Liddy thinks that 151-15 is a key level on the Bond Contract. Via Steve Liddy: After the May M/E rally, this level held, on bounces both 6/3 and 6/4. It also held Friday, and then again twice this morning.