Archive for November, 2015

Supply Musings

Monday, November 9th, 2015

Via CRT Capital (an excerpt from their end of day note): We're focused on the Refunding auctions this week and the first leg of the process was absorbed without difficulty on Monday.  The auction stopped-through 0.4 bp, marking the fourteenth consecutive auction to stop through or on-the-screws - so not much ...

Swap Spreads

Monday, November 9th, 2015

My friend Steve Liddy forwarded this Bloomberg story with some comments of his own: I'm sure the author here is both more informed, and smarter than I. However, I can't wrap my mind around the idea that weaker Sovereign credit spreads, especially here, are a big driver. I mean, if the ...

Fed labor market Index

Monday, November 9th, 2015

Via Stephen Stanley at Amherst Pierpont Securiites: The Federal Reserve Board’s Labor Market Conditions Index (LMCI) increased in October to +1.6 (anything above zero indicates that the labor market is absorbing slack).  Every month but one going back to March was revised higher, adding up to over 3 more points of ...

Today’s New Issue Calendar

Monday, November 9th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-11-09 15:06:07.479 GMT By Greg Chang (Bloomberg) -- List of new issues expected to price today: * Chevron Corp $benchmark Aa1/AA * 2Y fxd and/or FRN, 3Y fxd and/or FRN, 5Y fxd and/or FRN, 10Y * IPT 2Y fxd +55-60, 2Y FRN 3mL equiv, ...

Reuters Reports ECB to Take rates Deeper into Negative Territory

Monday, November 9th, 2015

Via Reuters: A consensus is forming at the European Central Bank to take the interest rate it charges banks to park money deeper into negative territory in December, four governing council members said, a move that could weaken the euro and push up inflation. Some argue that a deposit rate cut should ...

More Corporates

Monday, November 9th, 2015

This one is hot off the press via Bloomberg: *CATERPILLAR FINANCIAL SVCS 3Y IPT +75 A, 5Y +95 A 2015-11-09 13:33:19.156 GMT Information from person familiar with the matter, who is not authorized to speak publicly and asked not to be identified. --JAMES HOLLOWAY -0- Nov/09/2015 13:33 GMT

Morning Credit Call

Monday, November 9th, 2015

It looks as though this will be another active week of corporate issuance. Wells Fargo has already announced a 30 year sub deal. Chevron will sell 2s 3s 5s and 10s. AON will sell a long 5 year note. Attached is the morning credit note from Bob Elson at Bloomberg: CREDIT MORNING ...

Primary Dealer Investigation

Monday, November 9th, 2015

I have previously written about various lawsuits and governmental investigations involving primary dealer trading of when issued (WI) securities. Here is a new Bloomberg story on the topic which frankly does not break much new ground. Via Bloomberg: November 9, 2015 — 5:00 AM EST U.S. officials investigating the $12.8 trillion market for ...

What to Watch Today

Monday, November 9th, 2015

Via Bloomberg: Economic Data * 10:00am: Labor Mkt Conditions Index Change, Oct. (prior 0) * MBA Mortgage Foreclosures, 3Q (prior 2.09%) * Mortgage Delinquencies, 3Q (prior 5.3%) * Central Banks * 12:00pm: Fed’s Rosengren speaks in Portsmouth, R.I. * Supply * 11:00am: U.S. to announce plans for auction of 4W bills * 11:30am: U.S. to sell $30b 3M bills, $28b ...

Corporate Bond Trading

Monday, November 9th, 2015

Via Bloomberg: IG CREDIT: HAL Issues Led Volume; ANZ Deal Starts Issuance Week 2015-11-09 10:45:47.545 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $12.1b Friday vs $13.7b Thursday, $14.4b the previous Friday. 10-DMA $15.4b; 10-Friday moving avg $12.4b. * 144a trading added $2.3b of IG volume Friday vs $2.9b on Thursday, ...