Archive for February, 2016
Tuesday, February 9th, 2016
Via Bloomberg:
No question' policy makers were effective in crisis years ago
Focus turns to G-20 finance chiefs meeting in Shanghai
Central banks are running into diminishing returns from their use of easy monetary policies, seven years after first championing quantitative easing to save the world from depression.
The new reality is clear across global ...
Posted in Uncategorized | Comments Off on Epiphany
Tuesday, February 9th, 2016
Via Bloomberg:
The $102 Billion of Bank Debt That’s Making Investors Nervous
2016-02-09 09:52:31.616 GMT
By Tom Beardsworth and Cordell Eddings
(Bloomberg) -- Last year’s sure thing in credit markets is
quickly becoming this year’s nightmare for bond investors.
The riskiest European bank debt generated returns of about
8 percent last year, according to Bank of America Merrill ...
Posted in Uncategorized | Comments Off on Credit Angst
Tuesday, February 9th, 2016
Bloomberg reports that the Fed believes that it does not have the authority to implement negative rates here in US. Thanks to my former colleague Steve Liddy and Steve Feiss of Government Perspectives for the heads up on this one.
Via Bloomberg:
Fed May Lack Legal Authority for Negative Rates: 2010 Fed ...
Posted in Uncategorized | Comments Off on Negative Rates and the Fed
Tuesday, February 9th, 2016
I have noted before in this space that I watch the spread between 10 yer US and 10 year Spain.That is a relationship which I began following when Europe was crumbling. I still follow it as a market for financial stress. It has experienced a huge move recently.
This morning that ...
Posted in Uncategorized | Comments Off on Market Miscellany
Monday, February 8th, 2016
Via Robert Sinche at Amherst Pierpont Securities:
AUSTRALIA: The Business Conditions Index will be released for January following a drop to 7.0 in December, an 8-month low.
CHINA: During the week ahead China will release January data on both Bank Loans and the broader Aggregate Financing Activity. Comments in late January suggested ...
Posted in Uncategorized | Comments Off on Overnight Preview
Monday, February 8th, 2016
Via Bloomberg:
Eighth Day in Europe Amid Selloff
Tom Beardsworth
February 8, 2016 — 5:57 AM EST
Financial companies led a surge in the cost of insuring corporate bonds in Europe to the highest levels since 2013.
The Markit iTraxx Europe Subordinated Financial index of credit-default swaps on the junior debt of 30 banks and ...
Posted in Uncategorized | Comments Off on “There’s been sort of a buyer’s strike”
Monday, February 8th, 2016
Via Marc Chandler at Brown Brothers Harriman:
Drivers for the Week Ahead
- We see the US dollar's recent weakness as a function of two "transitory" developments
- Fed Chair Yellen delivers semi-annual testimony to Congress starting in the middle of the week
- Sweden's Riksbank meets on February 11
- The risk of ...
Posted in Uncategorized | Comments Off on FX
Monday, February 8th, 2016
Thanks to Steve Feiss rate strategist at Government Perspectives for the heads up on this one:
Via Bloomberg:
Japanese investors bought a record amount of long-term U.S. Treasuries last year, the Ministry of Finance reported, as record-low yields at home drove the hunt for bonds abroad.
Net purchases for 2015 totaled 13.85 trillion yen ...
Posted in Uncategorized | Comments Off on Japan’s Love Affair With Long Bond
Monday, February 8th, 2016
I follow 10 year Spain versus US and Germany and that spread has moved sharply since early Friday morning. At 920AM back on Friday that spread traded at 133 and currently trades at 142. A Bloomberg story notes that Portugal vs Bunds in the 10 year sector is at its ...
Posted in Uncategorized | Comments Off on Financial Distress
Monday, February 8th, 2016
Via Kit Juckes at Socgen:
The start of the Chinese New Year and the superbowl, have dampened down market activity considerably and a lack of news hasn't helped (and indeed, won't all week). The biggest overnight movers are KRW, reacting negatively to the N Korean rocket launch, and the yen which ...
Posted in Uncategorized | Comments Off on FX