Archive for April, 2016

Some Corporate Bond Stuff

Tuesday, April 12th, 2016

Via Bloomberg: IG CREDIT: Short Maturity Client Flows Led Volume; 4 to Price 2016-04-12 09:36:58.805 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $13.4b vs $13.8b Friday, $14.7b the previous Monday. 10-DMA $17.5b; 10-Monday moving avg $14.9b, second highest since the series began in 2005 * 144a trading added $2.1b of ...

Japan Won’t Intervene Without US Imprimatur

Monday, April 11th, 2016

Via Barron's : By Shuli Ren Japanese government officials have been talking up a currency intervention lately, as the Japanese yen hit a new 17-month high yesterday. Over the weekend, top government spokesman Yoshihide Suga said that the G-20′s agreement to avoid competitive currency devaluation doesn’t mean Japan can’t intervene in response to ...

Italian Bank Fund

Monday, April 11th, 2016

Via the FT: Italy’s strongest banks, insurers and asset managers have agreed to pony up about €5bn to create a systemic backstop fund to bail out weaker lenders in an effort to calm growing investors concern about the stability of the banking sector of the eurozone’s third largest economy. The rescue fund, ...

Obama Yellen Confab

Monday, April 11th, 2016

Via Bloomberg: President and Fed chair meet to discuss the U.S. economy Some economists predict near-zero GDP growth in first quarter President Barack Obama met with Federal Reserve Chair Janet Yellen on Monday to discuss the U.S. economy amid signs that growth may be slowing as consumers retreat from spending. Ahead of the afternoon ...

Earnings Seasons Kick Off

Monday, April 11th, 2016

Via the FT: Aluminium company Alcoa said on Monday that its sales and profits declined in the first quarter and revealed plans to cut jobs. The New York-based company posted a profit of $11m in the first three months of 2016, down from $255m in the same period in the year prior. ...

Treasury Bonds as High Yield Securities

Monday, April 11th, 2016

Via the FT: Say hello to the new high-yield bond of government debt markets – US Treasuries. US investors constantly grouch over the meagre returns offered by US government debt – the 10-year yield trades at just 1.72 per cent – and Wall Street analysts have repeatedly and erroneously forecast that US ...

Overnight Data Preview

Monday, April 11th, 2016

Via Robert Sinche at Amherst Pierpont Securities: In advance of its Spring Meetings in Washington DC, the IMF will release its World Economic Outlook, likely to be downbeat reading on ther growth outlook with a focus on downside risks to price pressures; in a report, the IMF has given lukewarm support ...

FX

Monday, April 11th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead The shifting view of Fed policy appears to have overwhelmed other considerations in driving the dollar lower The US earnings season begins in earnest this week with Alcoa and another 14 of the S&P 500 companies, including a few large banks Brexit ...

Corporate Bond Stuff

Monday, April 11th, 2016

Via Bloomberg: IG CREDIT: Client Flows Led Trading; JBIC Added to Pipeline 2016-04-11 09:44:19.744 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $13.8b Friday vs $18.9b Thursday, $14b the previous Friday. 10-DMA $17.4b; 10-Friday moving avg $15.1b. * 144a trading added $1.7b of IG volume Friday vs $2.6b Thursday, $1.7b last ...

Big Bets Against Ten Year

Monday, April 11th, 2016

Via Bloomberg: U.S. plans to sell $56 billion of notes, bonds this week Data will include retail sales, inflation, factory production Hedge funds and other large speculators set the biggest bet against Treasuries in five months as Federal Reserve officials debate when to raise interest rates. Net short positions in 10-year futures contracts increased ...