Archive for September, 2015

Corporate Bond Trading on Friday

Monday, September 28th, 2015

Via Bloomberg: IG CREDIT: DOW Issues Led Better Than Average Friday Volume 2015-09-28 09:40:21.820 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $13.3b Friday vs $14.9b Thursday, $11.2b the previous Friday. 10-DMA $13.4b; 10-Friday moving avg $10.3b. * 144a trading added $2.2b of IG volume Friday vs $2.8b on Thursday, $2b ...

What to Watch Today

Monday, September 28th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 8:30am: Personal Income, Aug., est. 0.4% (prior 0.4%) * Personal Spending, Aug., est. 0.3% (prior 0.3%) * Real Personal Spending, Aug., est. 0.4% (prior 0.2%) * PCE Deflator m/m, Aug., est 0% (prior 0.1%) * PCE Deflator y/y, Aug., est. 0.3% (prior 0.3%) * PCE ...

Rigged Auctions?

Monday, September 28th, 2015

I just woke up a little while ago and stumbled on this FT article on the wave of lawsuits alleging that the primary dealer community has rigged the auction process. Does this make any sense to anyone: "Before the auction takes place, primary dealers can buy and sell securities in a ...

FX

Monday, September 28th, 2015

Via Marc Chandler at Brown Brothers Harriman: Divergence Drivers and the Dollar - The main thrust of our bullish US dollar outlook, the divergence in monetary policy trajectories, remains intact - The economic picture in Europe this week may strengthen the case for further action by the ECB - If there is one ...

Resistance to Junk

Monday, September 28th, 2015

Earlier this evening I published this WSJ story on spread widening in the corporate bond market. Here is a subsequent WSJ story which focuses on recent turmoil in the junk bond market. Via the WSJ: By Matt Wirz and Liz Hoffman Sept. 27, 2015 11:29 p.m. ET Investors are pulling back from the junk-bond market, ...

More On Volkswagen Credit

Sunday, September 27th, 2015

I posted this story earlier and just found this one on the catapulting of the cost of protection on Volkswagen in the CDS market. Via the FT (from Friday): Click on the above link for the pretty graphs which do not fare well on my bare bones retied guy blog! A rollercoaster week ...

Permabear Speaks

Sunday, September 27th, 2015

Albert Edwards at SocGen is a long time bear on the global economy and regularly predicts disaster for the equity markets. He has earned the moniker, from some, of permabear. Notwithstanding that, I think that he presents a point of view which deserves exposition. He writes well and his story ...

Spread Widening

Sunday, September 27th, 2015

The WSJ reports on widening credit spreads and the possibility that those spreads are a canary in the coal mine signalling a stalling economy. I think it is more a reflection of the end of QE and an imminent Fed rate hike. The FOMC is signaling that it is about to ...

Volkswagen Bonds

Sunday, September 27th, 2015

The ECB has suspended purchase of asset backed securities supported by Volkswagen bonds. Via the FT: The European Central Bank has suspended buying bundles of loans backed by Volkswagen assets as it reviews the financial implications of the scandal engulfing Germany’s biggest carmaker. The plunge in VW shares by almost a third in ...

Catalonian Independece

Sunday, September 27th, 2015

I will confess that I have not followed the election in the Catalan region of Spain but Bloomberg News reports that parties which favor secession are on the cusp of a majority in an election held today. Via Bloomberg: Catalonia’s pro-independence parties are on the cusp of winning a majority of votes ...