Archive for January, 2016
Wednesday, January 6th, 2016
Prices of Treasury coupon securities have surged in overnight trading as the risk off mentality which has prevailed in the New Year continues. There are several reasons for the flight to safety. The dollar continues to surge (as does the yen). The Turkish lira which I watch has pierced 3.00. ...
Posted in Uncategorized | Comments Off on Overnight in Treasury Market
Tuesday, January 5th, 2016
This is a fascinating article from the FT which describes a hidden trove of debt obligations issued by corporations in developing (emerging)countries which have the guarantee of the sovereign. The rub here is that often times those obligations of the sovereign do not necessarily show up on the balance sheet ...
Posted in Uncategorized | Comments Off on Quasi Government Debt
Tuesday, January 5th, 2016
Via Robert Sinche at Amherst Pierpont Securities:
The global day for Services PMIs, and actually important data. We have argued that an inventory adjustment has been dampening manufacturing activity while global consumers appear to have been using the oil/gas “dividend” to purchase services – restaurant meals, travel, general services – rather ...
Posted in Uncategorized | Comments Off on Overnight Data Preview
Tuesday, January 5th, 2016
Via VRT Capital:
* The corporate deal pipeline is picking up with the New Year and we've heard of the below deals in the works. We're also hearing there are more to come as the relative stability in the markets this morning has cleared the way for issuers. See below list.
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ISSUER ...
Posted in Uncategorized | Comments Off on Corporate Issuance
Tuesday, January 5th, 2016
Via the WSJ:
The first week of 2016 has brought sinking temperatures and stocks–and now weaker estimates of economic growth for the fourth quarter.
Before Monday, the U.S. economy appeared to have ended 2015 on solid, though unspectacular, footing. Many economists were estimating that the nation’s gross domestic product–or the sum of all goods ...
Posted in Uncategorized | Comments Off on GDP Revisions
Tuesday, January 5th, 2016
Via Luke Kawa at Bloomberg:
The early January blues for Chinese stocks will persist throughout 2016, according to Bank of America Merrill Lynch, which expects the Shanghai Composite index to end the year down roughly 27 percent at about 2,600.
David Cui, head of China equity strategy, is known to be bearish ...
Posted in Uncategorized | Comments Off on B of A on China Stocks
Tuesday, January 5th, 2016
Via a fully paid up subscriber who forwarded this Bloomberg story:
CREDIT MORNING CALL: How Long Can Issuers Wait on Stocks?
2016-01-05 12:12:16.970 GMT
By Robert Elson
(Bloomberg) - While EIB and KFW are set to price today,
the big question is whether domestic issuers can wait another
day, Bloomberg’s Robert Elson writes.
* The plan was ...
Posted in Uncategorized | Comments Off on Credit Pipeline
Tuesday, January 5th, 2016
Via Chris Low at FTN Financial;
Yesterday’s market violence was noteworthy, but what stood out to us was the Atlanta Fed’s GDP Nowcast. (We’re economists, after all. Data rules!) The Q4 tracking model was revised to a meager 0.7% growth rate. It was the second significant downward revision in two weeks. ...
Posted in Uncategorized | Comments Off on GDP and Other Topics
Tuesday, January 5th, 2016
Via Bloomberg:
RATES: Active Clients Very Long vs All Near Unchanged, JPM Says
2016-01-05 12:32:27.170 GMT
By Robert Elson
(Bloomberg) -- The JPMorgan Treasury Client Survey for the
week ended Jan.4 vs week ended Dec. 14.
* Longs at 20, unchanged
* Neutrals 64 vs 62
* Shorts 16 vs 18
* Net longs 4 vs 2
* "The all ...
Posted in Uncategorized | Comments Off on JPM Duration Survey
Tuesday, January 5th, 2016
Via Marc Chandler at Brown Brothers Harriman:
Markets Calmer, Dollar Firmer
- Chinese shares and the yuan stabilized with the apparent help of the government's guiding hand
- The news stream is light today but there are four developments to note in Europe
- The North American calendar is light
- EM assets ...
Posted in Uncategorized | Comments Off on FX