Archive for August, 2015
Monday, August 24th, 2015
Via Merrill Lynch Research:
Situation Room
The gap is closed – long live the gap
24 August 2015
Key takeaways
With the underperformance in equities the gap between HG cash bond spreads and equity vol - has closed.
The gap between equity vol and the vol of equity vol is the next gap that has to ...
Posted in Uncategorized | Comments Off on Credit Spreads
Monday, August 24th, 2015
Via an excerpt from the closing note of Ian Lyngen at CRT Capital
Activity in the Treasury market was extremely high with cash trading at 240% of the 10-day moving-average for the most active session since Oct 2014 - during the 'flash-crash' episode. The belly led the rally so we weren't ...
Posted in Uncategorized | Comments Off on Very Heavy Volume in Treasury Market
Monday, August 24th, 2015
Via Bloomberg:
Fed’s Lockhart Sticks With 2015 Liftoff; Mum on Mkt Volatility
2015-08-24 19:55:00.12 GMT
By Vivien Lou Chen
(Bloomberg) -- Atlanta Fed Pres. Dennis Lockhart, sticking
with his view that 1st rate increase will occur “sometime this
yr,” says stronger USD, weaker CNY and decline in oil prices
are “complicating factors” for predicting pace of growth.
* ...
Posted in Uncategorized | Comments Off on Lockhart Comments
Monday, August 24th, 2015
Via Robert Sinche at Amherst Pierpont Securities:
CHINA: Conference Board’s Leading Economic Index for July, although the solid gains in recent months have not materialized into stronger growth.
HONG KONG: The BBerg consensus expects Exports to have fallen -5.1% YOY in July, which is a slump not as bad as China but ...
Posted in Uncategorized | Comments Off on Overnight Data Preview
Monday, August 24th, 2015
I regularly post the FX musings of Marc Chandler of Brown Brothers. I have never received this before but it is an excellent piece on market technicals in the various markets we trade.
Via Marc Chandler at Brown Brothers:
Technical Outlook For Turbulent Markets
It’s a difficult environment for the dollar, stocks and ...
Posted in Uncategorized | Comments Off on Market Technicals
Monday, August 24th, 2015
Dealers reporting active two way flow in the 2 year through 7 year sector as well as big buying of 10 year sector. Central banks have been better buyers of off the run 2 year paper.
Corporate bond spreads have widened but one portfolio manager noted that there is no panic ...
Posted in Uncategorized | Comments Off on Monday Morning Miscellany
Monday, August 24th, 2015
Via an anonymous swap market trader who writes consistently great analysis:
Today at 9:02 AM
Monday morning cross markets meeting was all about widening in spreads, outflows from funds and a very uneasy feeling about liquidity. Listening to every spread product describe moves of 5 to 35 wider and then ...
Posted in Uncategorized | Comments Off on Excellent Market Commentary
Monday, August 24th, 2015
Several people with whom I have conversed this morning have made comparisons to the price action in 2008 when the financial system had its near death experience. The difference is that this time (so far) the money markets are not melting. In 2008 the system was overleveraged and counterparties would ...
Posted in Uncategorized | Comments Off on Crisis Redux
Monday, August 24th, 2015
Via Marc Chandler at Brown Brothers Harriman:
In Exaggerations Lie Investment Opportunities
- The key to stabilizing the markets may not lie with data; the most important missing piece is the intent of policy makers
- That is why the more important even this week (August 29) may be the Fed's Vice Chairman's ...
Posted in Uncategorized | Comments Off on FX
Monday, August 24th, 2015
Via Bloomberg:
IG CREDIT: Volume Lower; Spreads Again Make New Wides for 2015
2015-08-24 09:52:07.103 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $7.3b Friday vs $12.6b Thursday, $8.2b the previous
Friday. 10-DMA $11.9b; 10-Friday moving avg $9.8b, the lowest
since October.
* 144a trading added $1.3b of IG volume Friday ...
Posted in Uncategorized | Comments Off on Corporate Bonds