Archive for April, 2016

Three Year Note Auction Today

Tuesday, April 12th, 2016

Via Ian Lyngen at CRT Capital:   We are optimistic about this afternoon's $24 bn 3-year auction and see the risk of a stop-through in light of the historically strong takedowns of new 3s and the net paydown of $17 bn for this week's trio of auctions - providing ample investable cash ...

More on Bank Lending to Energy Companies

Tuesday, April 12th, 2016

I just published this and subsequently stumbled on this Bloomberg story. Via Bloomberg: April 12, 2016 — 12:01 AM EDT   At its annual investor conference in San Francisco in May 2014, with oil trading at $102 a barrel, Wells Fargo & Co. boasted that in just two years it had almost doubled its ...

Balance Sheets and Inventory and Liquidity

Tuesday, April 12th, 2016

Via the FT on April 08: Think of banks’ bond departments as a huge used-car lot. Forecourts used to be stuffed with every make of every vintage. If you wanted a 1992 Mustang, or a 2007 Passat, no problem: it’d be right there, with an attractive price on the bonnet. Now, stocks ...

FX

Tuesday, April 12th, 2016

Via Marc Chandler at Brown Brothers Harriman: Higher Inflation Lifts Sterling, Yen Stabilizes There are three highlights to the foreign exchange market today:  first, the yen is marginally softer The second highlight in the foreign exchange market today is the extension of sterling's recovery The third development in the foreign exchange market is the ...

Banks and Energy Loans

Tuesday, April 12th, 2016

Via WSJ: By Rachel Louise Ensign April 12, 2016 5:30 a.m. ET 0 COMMENTS The $147 billion question for banks: Will energy companies max out their credit lines? When big banks announce earnings starting on Wednesday, the spotlight will be on massive energy loans that most investors didn’t know much about until recently. These unfunded loans ...

Trading in the Clouds

Tuesday, April 12th, 2016

Via the WSJ: By Sarah Krouse and Emily Glazer April 12, 2016 6:00 a.m. ET 0 COMMENTS After decades of transmitting trades by phone line, J.P. Morgan Chase & Co. is close to cutting the cord. The largest U.S. bank by assets said it is in discussions to move its world-wide trading systems to an Internet-based ...

Negative Rates Fail to Stimulate Lending in Japan

Tuesday, April 12th, 2016

Via Bloomberg: Bank of Japan started policy in February to spur credit Analyst `skeptical' whether sub-zero rates will fuel loans Japanese loan growth slowed to the weakest pace in three years in March, signaling the central bank’s introduction of negative interest rates has yet to spur credit in the world’s third-largest economy. Loans excluding ...

Whiff of Inflation in UK

Tuesday, April 12th, 2016

Via Bloomberg: Prices pushed up by surge in air fares, higher clothing costs Core inflation accelerates to 1.5%, most since October 2014 U.K. inflation accelerated to a 15-month high in March as an early Easter boosted air fares and clothing prices increased. Consumer prices rose 0.5 percent from a year earlier, the fastest pace ...

Credit Pipeline

Tuesday, April 12th, 2016

Via Bloomberg: IG CREDIT PIPELINE: 4 Set to Price; SYDAU Added to List 2016-04-12 09:27:45.105 GMT By Robert Elson (Bloomberg) -- Set to price today: * Japan Bank for International Cooperation (JBIC) A1/A+, to price 2-part Global deal Tuesday, via managers Barc/C/HSBC/JPM/Miz * 5Y, guidance MS +78 * 10Y, guidance MS +83 area * Bank Nederlandse Gemeenten (BNG) Aaa/AAA, to ...

Early FX

Tuesday, April 12th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h103e04b3,168e5749,168e574a&p1=136122&p2=39528903ff116412572d960f8e871304> Oil prices and bond yields are both marginally higher and risk sentiment is in good nick, which means that the dollar is languishing at the lower end of this week's FX rankings, just above the now-weakening yen. The real test comes from the equity market as ...