Archive for January, 2016
Thursday, January 14th, 2016
Yesterday I posted unceasingly on the InBev deal. Here is a final post. In early trading after the deal priced the various fixed tranches were 7 basis points to 10 basis points tighter. For the most part that is not the case this morning as only the 30 year is ...
Posted in Uncategorized | Comments Off on Final Word on the Big Beer Deal From Yesterday
Thursday, January 14th, 2016
A loyal reader of this blog forwarded a very interesting (to me) article on the current set of 20 year olds in Japan who only knowdeflation. That reminds of a conversation I would often have with my Brooklyn born late father whose formative experience was growing up through the Great ...
Posted in Uncategorized | Comments Off on Japan’s Lost Generation
Thursday, January 14th, 2016
Via the FT:
Communist China has one of the world’s highest levels of income inequality, with the richest 1 per cent of households owning a third of the country’s wealth, a report from Peking University has found.
The poorest 25 per cent of Chinese households own just 1 per cent of the ...
Posted in Uncategorized | Comments Off on Income Inequality in China
Thursday, January 14th, 2016
Via Bloomberg:
Goldman Said to Mull Cutting Fixed-Income Staff More Than 5% (2)
2016-01-14 02:44:29.527 GMT
By Michael J. Moore
(Bloomberg) -- Goldman Sachs Group Inc. is considering
cutting more than 5 percent of its fixed-income traders and
salesmen later this quarter as it contends with an industrywide
revenue slump, according to a person with knowledge of the
matter.
The ...
Posted in Uncategorized | Comments Off on Goldman Sachs Weighs Layoffs in Fixed Income
Wednesday, January 13th, 2016
The 10 year note is marching relentlessly and inexorable to a 1.999 print (in my humble opinion). There are several factors at work driving the trade today. Two market makers with whim I conversed cited the InBev deal as a catalyst for the price action. The news from yesterday was ...
Posted in Uncategorized | Comments Off on Treasury Update
Wednesday, January 13th, 2016
Via Bloomberg:
LAUNCH: AB InBev $46b Debt Offering in 7 Parts
2016-01-13 18:29:07.279 GMT
By Greg Chang
(Bloomberg) -- Total offering size of $46b would be the 2nd
biggest on record.
* $4b 3y fixed launch +85; guidance was +90a; IPT was +120a.
* $7.5b 5y fixed launch +120; guidance was +125a; IPT was
+145a
* $500m 5y FRN ...
Posted in Uncategorized | Comments Off on Launched
Wednesday, January 13th, 2016
Via CRT Capital:
*** The auction was strong with a 1.1 bp stop-through and non-dealer bidding at 82.3% vs. 72% norm ***
* 10-year auction stops at 2.090% vs. 2.101% 1-pm bid WI.
* Dealers were awarded 17.7% vs. 28% average of last four 10-year Reopenings.
* Indirects get 71.0% vs. 60% norm.
* Directs ...
Posted in Uncategorized | Comments Off on Ten Year Auction Result
Wednesday, January 13th, 2016
Via Robert Sinche at Amherst Pierpont Securities:
AUSTRALIA: The always interesting Employment Report for December, with the Bberg consensus expecting only a modest -10.0K give-back following the 15-year high surge of +71.4K in November. The more stable UR is expected to inch up to 5.9% from 5.8% in November.
CHINA: Over the ...
Posted in Uncategorized | Comments Off on Overnight Data Preview
Wednesday, January 13th, 2016
Via Bloomberg:
IG CREDIT: AB InBev $110b Book Largest in History, Mischler Says
2016-01-13 17:21:58.559 GMT
By James Holloway
(Bloomberg) -- $110b will make for the largest order book
on record, according to Ron Quigley, head of syndicate at
Mischler Financial Group.
* Previous record was $101b for the Sept. 2013 record $49b VZ
deal: Quigley
* NOTE: AB ...
Posted in Uncategorized | Comments Off on More on the Beer Deal
Wednesday, January 13th, 2016
Via Bloomberg:
BFW 01/13 16:43 *GUID: AB INBEV 3Y/5Y FRN 3ML EQUIV
BFW 01/13 16:43 *GUIDANCE: AB INBEV 20Y +195A, 30Y +210A (ALL +/-5)
BFW 01/13 16:43 *GUID: AB INBEV 3Y FXD +90A, 5Y FXD +125A, 7Y +155A, 10Y +165A
GUID: AB InBev USD 3y and 5y Fxd And/Or FRN, 7y, 10y, 20y, 30y
2016-01-13 ...
Posted in Uncategorized | Comments Off on InBev Guidance