Archive for June, 2015

Greece Should Just Say No

Sunday, June 14th, 2015

Walter Munchau at the FT has posted an interesting article on the options facing Greece in its negotiations with its European creditors. If Greece accedes to the demands of the creditor the country will take a huge GDP hit over the next several years (a little over 12 percent cumulatively ...

Negotiations Stymied

Sunday, June 14th, 2015

Via the FT:   Last updated: June 14, 2015 5:41 pm Greece locked in ‘last try’ talks with bailout negotiators Greek ministers and their bailout creditors were locked in 11th-hour negotiations on Sunday night in what some officials described as a last-ditch effort to strike a deal to secure Athens a desperately needed €7.2bn ...

German Official Raises Prospect of Greek Exit

Sunday, June 14th, 2015

Via Bloomberg: Germany gave its most explicit warning yet that Greece could eventually leave the euro as European Union officials try to hammer out a last-minute deal over bailout funds. “The shadow of a Greek exit from the euro zone is becoming increasingly perceptible,” German Economy Minister and Vice-Chancellor Sigmar Gabriel wrote ...

Dismal View on Credit Spreads

Friday, June 12th, 2015

If you look at the very end of the appended summary you will see a faint representation of "Click for full report". That will send you to the entire PDF. Via Merrill Lynch Research: Buyer's market. The high grade credit market is increasingly becoming a buyer's market as heavy supply volumes continue ...

Weekend Data Preview

Friday, June 12th, 2015

Via Robert Sinche at Amherst Pierpont Securities: CHINA: No scheduled releases, but markets will be watching to see if any monetary policy changes announced; a RRR cut of up to 1% a possibility. INDIA: Over the next few days May data on Imports and Exports will be released, with YOY Export growth ...

Guest Post

Friday, June 12th, 2015

Via my friend Steve Liddy: A couple of months ago I sent out an article citing the negative effects, of the sharp Oil price decline, on the Houston CRE market (Houston has either the 2nd or 3rd most CRE construction sites in the country right now). I'm on record as saying I ...

Greece Headline

Friday, June 12th, 2015

Via a fully paid up subscriber: Greek Officials to Be Sent to Brussels Saturday for Talks: Govt 11:24 Greek govt ready to submit counter-proposals, which will bridge remaining differences with creditor institutions, a govt official says in non-paper to reporters. • Representatives of the Greek PM will be dispatched to Brussels Saturday morning to meet with mission ...

Treasury market Update

Friday, June 12th, 2015

Today it is all about Greece all time and the seeming unraveling of negotiations between creditors and that debtor, Greece , have sparked a bit of a flight to quality. In Greece 10 year has widened by 29 basis points and in Portugal. Italy, Spain and Ireland spreads have widened ...

Natural Rate of Unemployment

Friday, June 12th, 2015

The FOMC may have new rationale for delaying rate hikes or being extremely patient when the process begins. Bloomberg reports on a Fed staff research paper which argues that we are not at full employment until the rate is 4.2/4.3. Via Bloomberg: Next week, Federal Reserve officials publish new quarterly forecasts, and ...

Dealer Positions in Corporate Bonds

Friday, June 12th, 2015

Via Bloomberg: IG CREDIT: Dealer Positions Fall, 5-10Y Issues Drop Most 2015-06-12 10:43:01.619 GMT By Robert Elson (Bloomberg) -- Dealer positions in corporate bonds fell $544m to $28b as of June 3. $21.1b, seen Feb. 11, is the low for the series Fed began in April 2013. $45.9b, seen March 5, 2014, is the high. * Investment grade ...