Archive for May, 2016

FX

Monday, May 23rd, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead The Federal Reserve has succeeded in convincing the market that a summer rate hike was more likely than it previously believed It is unrealistic to expect the ECB to extend its easing program until the effects of its ...

Credit Pipeline

Monday, May 23rd, 2016

Via Bloomberg: IG CREDIT PIPELINE: 4 Expected to Price; Domestics to Be Added 2016-05-23 09:45:47.954 GMT By Robert Elson (Bloomberg) -- Set to price today: * The Russian Federation (RUSSIA) BB+/BBB-, to price $bench 144a/Reg-S 10Y, via mamanger VTB-solo; IPT 4.65-4.90% * Axis Bank (AXSBIN) Baa3/BBB-, to price 144a/Reg-S 5Y Green Bond, via managers Axis/BAML/C/CA/HSBC/JPM/SCB; IPT +175 area * Australia ...

Should the Treasury Offer Longer Dated Debt?

Monday, May 23rd, 2016

Via Bloomberg: May 22, 2016 — 6:00 PM EDT Updated on May 23, 2016 — 5:05 AM EDT The U.S. Treasuries market is a world-beater when it comes to sheer size, depth and liquidity. Yet in one area it’s falling behind. To lock in historically low interest rates, Belgium, Canada, France, Mexico, Spain, Switzerland ...

Fed Rate Hike Non Event?

Monday, May 23rd, 2016

Via WSJ: By Min Zeng and Mike Cherney Updated May 22, 2016 9:31 p.m. ET Stock and bond markets appear ready to absorb the next Federal Reserve rate increase without descending into turmoil, fund managers say, reflecting economic shifts and investor positioning since the last Fed move in December. Fears of another market tantrum arose ...

Rosengren on Fed Policy

Monday, May 23rd, 2016

Via the FT: The US is on the verge of meeting most of the economic conditions the Federal Reserve has set to increase interest rates next month, according to a member of the rate-setting Federal Open Market Committee. Eric Rosengren, the president of the Federal Reserve Bank of Boston, told the Financial ...

Slow Growth in Europe

Monday, May 23rd, 2016

Via Bloomberg: Growth in the euro area’s private sector unexpectedly slowed in May, signaling that the region won’t maintain the strong pace of expansion recorded at the start of the year. A Purchasing Managers Index slipped to 52.9 from 53 in April, London-based Markit Economics said on Monday. Economists surveyed by Bloomberg ...

Periphery Spreads Attractive?

Thursday, May 19th, 2016

Via FT: Eurozone “periphery” spreads are attractive at the long end, says UniCredit. At mid-session on Thursday, Italian and Spanish 10-year government bonds yielded about 132 basis points and 142bp more, respectively, than the equivalent-maturity German Bund. These differences, or spreads, should contract because this part of the peripheral bond market is overly ...

Yield Whores Pile Into Bond Funds

Thursday, May 19th, 2016

Via FT: The demand for yield accelerated in the past week as investors piled into high-grade US corporate bond funds, providing a big boost for companies seeking to sell debt. US funds purchasing investment-grade company debt attracted $1.1bn of fresh money in the week to May 18, the 11th consecutive week of ...

Leveraged Loans Levitating Ludicrously

Thursday, May 19th, 2016

Via FT: The total return of a widely watched leveraged loan index has risen to a new record high, surpassing levels last reached in May 2015, in the latest sign of stability slowly returning to riskier parts of the credit market. Riskier, leveraged loans are widely used by US companies and often ...

Bond Binge

Thursday, May 19th, 2016

Via Bloomberg: ‘More Is Coming’ in U.S. Bond Binge, BlackRock’s Rieder Says 2016-05-19 16:10:29.308 GMT By Claire Boston (Bloomberg) -- Bond buyers who are exhausted after Dell Inc.’s $20 billion offering need to recover fast, according to Rick Rieder at BlackRock Inc. “More is coming,” Rieder, BlackRock’s chief investment officer for global fixed income, said in a television interview on ...