Archive for April, 2016
Sunday, April 3rd, 2016
A London based research group has published a paper which suggests that dealers, acting as underwriters, have systematically mispriced corporate bonds an in so doing have caused grievous harm to shareholders of those issuers. That is a little hyperbole but he does suggest that the same banks have done a ...
Posted in Uncategorized | Comments Off on Corporate Bond Mispricing
Sunday, April 3rd, 2016
Morgan Stanley has come out in favor of owning inflation protection via TIPS bonds. As the Bloomberg story notes that train has left the station as breakevens have rallied since February 11.
Via Bloomberg:
April 3, 2016 — 9:35 PM EDT
Morgan Stanley recommended Treasury Inflation Protected Securities, joining BlackRock Inc. and Pacific ...
Posted in Uncategorized | Comments Off on TIPS Believer
Sunday, April 3rd, 2016
Via the NYTimes:
If you were going to sit down and sketch out an ideal scenario for the American job market in 2016, it would look something like this:
The United States would keep adding jobs at a steady clip. Wages would rise gradually — enough to put more money in workers’ ...
Posted in Uncategorized | Comments Off on Goldilocks
Friday, April 1st, 2016
Via Reuters (hat tip to Steve Feiss at Government Perspectives)
New York Federal Reserve President William Dudley on Thursday said he agrees with Fed Chair Janet Yellen's views that the U.S. central bank should proceed cautiously on raising interest rates, particularly given risks from slow growth abroad.
If the U.S. economy continues ...
Posted in Uncategorized | Comments Off on Dudley in Sync With Yellen
Friday, April 1st, 2016
Via WSJ:
By Corrie Driebusch and
Maureen Farrell
Updated March 31, 2016 9:01 p.m. ET
The U.S. stock market has taken off, but it has left behind an important passenger: the IPO.
Major stock indexes have gained about 13% in the past seven weeks and are now in positive territory after a swoon early in ...
Posted in Uncategorized | Comments Off on Weak IPO Market
Friday, April 1st, 2016
Via Bloomberg:
IG CREDIT: All-Time Record High Trading Volume Hit
2016-04-01 09:40:53.848 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $22.9b, the highest volume session back to March 2005
when the series began, vs $18.9b Wednesday, $10.5b the previous
Thursday. 10-DMA $16.8b; 10-Thursday moving avg $18.4b.
* 144a trading added $3.4b ...
Posted in Uncategorized | Comments Off on Record Volume in Corporates Yesterday
Friday, April 1st, 2016
Via the FT:
The Bank of Japan’s closely-watched Tankan survey of Japan inc. in the March quarter fell short of expectations almost across the board, with business sentiment among large manufacturers coming in at its lowest reading since the June quarter of 2013. No joke. Here’s what some economists think:
Izumi Devalier ...
Posted in Uncategorized | Comments Off on Tankan Survey Comments
Friday, April 1st, 2016
Bloomberg has posted a fascinating article on the credit collapse which accompanied the financial crisis and the failure of credit to revive to anything approaching pre crisis levels. The article posits that the lack of credit availability has created a class of consumers who now suffer permanent malaise and who ...
Posted in Uncategorized | Comments Off on Credit Angst