Archive for March, 2016
Monday, March 14th, 2016
This Bloomberg article on flows in the equity markets paints a troubling and disturbing picture. The author makes the case that corporate buybacks are the main prop holding the equity market together.
Via Bloomberg:
Corporate buybacks poised to surpass the all-time high in 2007
Contrast to fund outflows running at almost fastest rate ...
Posted in Uncategorized | Comments Off on One Big Equity Buyer Left
Monday, March 14th, 2016
Via the WSJ:
By Tom Fairless
Updated March 13, 2016 7:10 p.m. ET
FRANKFURT—Central bankers over the past two decades pursued 2% inflation as a Goldilocks standard—neither too hot nor too cold. After years of undershooting in advanced economies, some economists now say that target should be adjusted.
Trouble is, they can’t agree whether ...
Posted in Uncategorized | Comments Off on Inflation Targets
Monday, March 14th, 2016
Via Bloomberg:
IG CREDIT: Record High 10-Friday Moving Average
2016-03-14 09:53:20.340 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $15.2b vs $18.7b Thursday, $16.6b the previous Friday.
10-DMA $18.7b; 10-Friday moving avg $15.3b, highest on record
back to March 2005.
* 10-Thursday moving avg $18.5b, a new record high back to
March ...
Posted in Uncategorized | Comments Off on Corporate Bond Stuff
Monday, March 14th, 2016
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
* Economic Data
* No events
* Central Banks
* TBA: Bank of Japan policy rate, est. -0.1% (prior -0.1%)
* 3:00pm: Reserve Bank of New Zealand speaks in Auckland
* 8:30pm: Reserve Bank of Australia meeting minutes
* Supply
* 11:00am: U.S. to announce plans for auction of 4W ...
Posted in Uncategorized | Comments Off on What to Watch Today
Monday, March 14th, 2016
Via Marc Chandler at Brown Brothers Harriman:
Drivers for the Week Ahead
- Monetary policy remains very much center stage in the week ahead when five major central banks meet
- Of the central banks, the risk of Bank of England action is least
- The chances of an SNB policy response to the ...
Posted in Uncategorized | Comments Off on More FX
Monday, March 14th, 2016
Via Kit Juckes at Socgen:
CFTC IMM positioning data are only a snapshot of part of the currency market, but the net long yen speculative position last Tuesday, ahead of the ECB meeting, was the biggest since March 2008. The market turned from a big yen short to a big long ...
Posted in Uncategorized | Comments Off on Early FX
Sunday, March 13th, 2016
Via Bloomberg:
If you don’t need the funds then why should you raise them?”
Overseas borrowers may issue in Europe because of low yields
Mario Draghi’s plans to buy corporate bonds will cut financing costs for European companies, if history is any guide. Getting the firms to actually borrow and spend money will ...
Posted in Uncategorized | Comments Off on Pushing on a String Department
Sunday, March 13th, 2016
Via the FT:
Angela Merkel suffers dramatic setback in regional elections
German voters back rightwing populists in protest at contentious refugee policies
by: By Stefan Wagstyl in Berlin
German chancellor Angela Merkel has suffered a dramatic setback as voters backed rightwing populist forces in regional elections seen as a referendum on her contentious refugee ...
Posted in Uncategorized | Comments Off on Precursor?
Saturday, March 12th, 2016
Via the FT:
The spectre of protectionism and the destructive impact of negative interest rates, pose serious threats to the world economy, says BlackRock chief executive Larry Fink.
Mr Fink, who heads the world’s largest money manager, said negative rates — coming on top of eight years of low rates — eroded ...
Posted in Uncategorized | Comments Off on Larry Fink Unleashed
Saturday, March 12th, 2016
Thanks to Steve Feiss at Government Perspectives for sharing this story.
Via Bloomberg:
Uncompleted trades tally $32 billion in latest weekly data
Shortage may ease as March 9 auction settles next week
A shortage of benchmark 10-year Treasuries in the market for borrowing and lending U.S. government debt is triggering a surge in unsettled trades.
Failure to ...
Posted in Uncategorized | Comments Off on Ten Year Note Short