Archive for June, 2015

Can Federal Reserve Buy Puerto Rico Debt

Wednesday, June 24th, 2015

Via Bloomberg: U.S. Fed Has Legal Authority to Buy Puerto Rico Debt, Study Says 2015-06-24 15:42:26.556 GMT By Kasia Klimasinska (Bloomberg) -- Federal Reserve has legal authority to buy Puerto Rican debt as a U.S. municipality or a foreign country, Arturo Estrella, a former New York Fed economist, says in report released Wednesday. * Estrella’s paper lays out ...

Nice Greece Summary

Wednesday, June 24th, 2015

Via Bloomberg: Greece Deal No Guarantee Can Pay IMF, Avoid Capital Controls 2015-06-24 13:55:57.34 GMT By Deborah L Hyde and Stefania Spezzati (Bloomberg) -- Greek Prime Minister Alexis Tsipras meets creditors again to discuss rival plans to secure bailout funds before the current program ends and payments to the IMF fall due on June 30. * Even if ...

New Corporate Supply

Wednesday, June 24th, 2015

via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-06-24 14:05:00.0 GMT By Allan Lopez (Bloomberg) -- Just 1 new issue expected to price today: * Brown-Forman $350m A1/A- * * 30Y * IPT +155 area * Books: BofAML, Barclays, C, USB

Five Year Note Auction

Wednesday, June 24th, 2015

Via Ian Lyngen at CRT Capital: We are optimistic about this afternoon's 5-year auction as the sector has recently been well-received and the Greek debt crisis continues to support the broader Treasury market. In addition, with the WI suggesting the highest yield for a new 5-year since Dec, we're cognizant that ...

Treasury market Investigation

Wednesday, June 24th, 2015

Bloomberg has posted a very long article on a Justice Department investigation of bidding at Treasury auctions. The article focuses on sharing of information about client bids and the size of those bids. The DOJ is looking at the sharing of that information among dealers. There is a piece of ...

GDP Analysis

Wednesday, June 24th, 2015

Via Stephen Stanley at Amherst Pierpont Securities: The third estimate of Q1 GDP was largely as expected.  The decline for the quarter was shaved from 0.7% annualized to 0.2%.  The upward adjustment came mainly in consumer spending, reflecting an upward revision to retail sales and the Quarterly Services Survey data, and ...

Raising the Minimum

Wednesday, June 24th, 2015

Via Bloomberg: Ikea Will Raise U.S. Minimum Wage to $11.87 to Retain Workforce 2015-06-24 04:01:00.5 GMT By Claire Boston (Bloomberg) -- Ikea Group, the world’s largest furniture retailer, will raise the hourly minimum wage it pays workers in the U.S. by 10 percent to $11.87, seeking to keep employees from moving to other merchants that have boosted ...

What to Watch Today

Wednesday, June 24th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * * 7am: MBA Mortgage Applications, June 19 (prior -5.5%) * 8:30am: Revised GDP, 1Q, est. -0.2% (prior -0.7%) * * Personal Consumption, 1Q, est. 1.9% (prior 1.8%) * GDP Price Index, 1Q, est. -0.1% (prior -0.1%) * Core PCE, 1Q, est 0.8% (prior 0.8%) * Supply * * 11:30am: ...

FX

Wednesday, June 24th, 2015

Via Marc Chandler at Brown Brothers: Corrective Tone Threatens Trends in FX Market - The two main drivers remain in play:  Greece and the US economy - Negotiations with Greece appear to have entered a final phase - Revisions to US Q1 GDP are expected to show that a -0.7% contraction was ...

Secondary market Corporate Bond Trading Yesterday

Wednesday, June 24th, 2015

Via Bloomberg: IG CREDIT: Volume Improves; GS, RAI Issues Led Flows 2015-06-24 10:13:28.578 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $15.4b vs $11.8b Monday, $15.1b the previous Tuesday. 10-DMA $13.8b; 10-Tuesday moving avg $16b. * 144a trading added $2.8b of IG volume vs $1.8b on Monday, $1.8b last Tuesday * Most ...