Archive for September, 2015

Oil Squeeze

Sunday, September 27th, 2015

The FT has an interesting post about the trials and tribulations and financial travails of Saudi Arabia as the price of oil craters. The FT article notes that the Kingdom has repatriated about $73 billion in recent months as it suffers a cash squeeze. Via the FT: Saudi Arabia Saudi Arabia withdraws overseas ...

Guest Post

Friday, September 25th, 2015

Via my friend and former colleague Steve Liddy: I must have gotten 10 messages, from various people, wondering what the FED Chair was doing with last night’s speech and how the FED had lost credibility. I’m not here to dissect the speech, but it really does read like most everything she ...

GDP

Friday, September 25th, 2015

Via Stephen Stanley at Amherst Pierpont Securities: Q2 GDP came in stronger than expected, as the consumer spending figures were revised upward by more than I had projected.  The 3.9% annualized gain for Q2 has to be taken in context (Q2 was a bounceback quarter after a difficult Q1).  Nevertheless, the ...

What to Watch Today

Friday, September 25th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 8:30am: GDP Annualized, 2Q T, est. 3.7% (prior 3.7%) * Personal Consumption, 2Q T, est. 3.2% (prior 3.1%) * GDP Price Index, 2Q T, est. 2.1% (prior 2.1%, revised 2.1%) * Core PCE, 2Q T, est. 1.8% (prior 1.8%) * 9:45am: Markit US Composite PMI, ...

FX

Friday, September 25th, 2015

Via Marc Chandler at Brown Brothers Harriman: Yellen Lifts the Dollar - The Fed's Chair seemed to have surprised the market with her comments after North American markets closed yesterday - The dollar has gained against the yen as much as it has gained against the euro - Comments from ECB officials this week ...

Corporations with Cash Buying Corporates

Friday, September 25th, 2015

Via the WSJ: By Vipal Monga Updated Sept. 24, 2015 8:56 p.m. ET Companies reaching for better returns on their cash have found a new favorite investment—other companies’ bonds—and they are loading up. Cash-rich companies like Apple Inc., Oracle Corp. and Johnson & Johnson are snapping up corporate bonds sold by highly rated companies ...

Overnight Flow

Friday, September 25th, 2015

End users based in Europe sold 10 year notes. Japan based clients sold the belly (5s and 7s). Central banks parked money in very short bills. US based end users sold 1 year through 2 year paper.  

Corporate Bond Trading

Friday, September 25th, 2015

Via Bloomberg: IG CREDIT: Long T, VZ Issues Led Trading; Spreads Move Wider 2015-09-25 09:36:24.376 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $14.9b vs $13.6b Wednesday, $13.1b last Thursday. * 10-DMA $13.3b; 10-Thursday moving avg $14.6b * 144a trading added $2.8b of IG volume vs $3.2b on Wednesday, $2.5b last ...

Early FX

Friday, September 25th, 2015

Via Kit Juckes at SocGen <http://www.sgresearch.com/r/?id=heb4e763,142898bb,142898bc&p1=136122&p2=d7695d369b1eaafd4d95faca2f8e8c06> FX weekly is attached. The Fed has led the world in a mad experiment of central bank bond-buying and zero rates. But while 'QE' sought to boost demand through a wealth effect as asset prices rose, that particular piece of string can only be pushed so far. ...

Financial Conditions

Thursday, September 24th, 2015

Via the FT: Financial conditions and a catch-22 for the Fed Gavyn Davies Author alerts When Janet Yellen announced last week that the Federal Open Market Committee had considered, but decided against, a rate rise in September, many commentators concluded that the Fed had taken a decisive shift towards dovishness. Yet the markets, ...