Archive for May, 2016

Saudi Arabia Says “Check is in the Mail”

Wednesday, May 18th, 2016

Via Robert Sinche at Amherst Pierpont Securities: Bloomberg just posted a story on payments by the Saudi government at least partially with IOUs, something that also was done in the 1990s. While this has garnered headlines, it may reflect the weakness in oil prices – and revenues – earlier this year, ...

FX

Wednesday, May 18th, 2016

Via Marc Chandler at Brown Brothers Harriman: Dollar Gains on More Supportive Rates Outlook The US dollar is rising against all the major currencies today as rates markets are adjusting in its favor During the North American session, the FOMC minutes will be the highlight Japan reported stronger than expected ...

Some Corporate Bond Stuff

Wednesday, May 18th, 2016

Via Bloomberg: IG CREDIT: Secondary Trading Remains in Back Seat vs Issuance 2016-05-18 10:04:41.124 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $15b vs $11.7b Tuesday. 144a trading added $2b of IG volume vs $1.5b. * The most active issues: * SPGI 4.40% 2026; just 2 large client tickets accounted for all ...

Credit Pipeline

Wednesday, May 18th, 2016

Via Bloomberg: IG CREDIT PIPELINE: 4 Set to Price; Domestic Names Expected 2016-05-18 09:43:10.966 GMT By Robert Elson (Bloomberg) -- Set to price today: * HSBC Holdings (HSBC) A1/A, to price $bench 4-part deal, via manager HSBC * 5Y FRN; IPT equiv * 5Y, IPT +180 area * 7Y, IPT +215 area * 10Y, IPT +230 area * KfW (KFW) Aaa/AAA, ...

Gender Controversy and Bathroom Design

Wednesday, May 18th, 2016

It is difficult for me to believe that I am publishing this and difficult to believe that Bloomberg had someone write the story. The strangest little information nugget in the story is that the University of Utah has a lawyer who specializes in restrooms and transgender issues. Via Bloomberg: Single-user unisex ...

Derivative Tax

Wednesday, May 18th, 2016

Via WSJ: By Richard Rubin May 18, 2016 12:00 a.m. ET 1 COMMENTS If Democrats retake the Senate this fall, tax policy will fall to Sen. Ron Wyden of Oregon, who is beginning to elaborate on his priorities and plans. Mr. Wyden recently released a plan to overhaul the rules companies use to calculate their ...

Early FX

Wednesday, May 18th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h108b3c7e,1707b733,1707b734&p1=136122&p2=6f057f5c10c471af173348f4743dbe23> May has, so far, been a good month for the dollar, which is up 10% this month against the South African rand, 4% against the Australian dollar and top of the major currency league. This despite the fact that oil prices too, are higher. The negative ...

Japan GDP

Tuesday, May 17th, 2016

Via FT: an hour ago by: Peter Wells Japan’s economy grew more than expected during the first three months of this year, a development that may dull the prospect of near-term monetary policy easing. The Japanese economy grew by 0.4 per cent seasonally adjusted quarter-on-quarter from a revised 0.4 per cent contraction (previously -0.3 ...

Lockhart Says Market Underestimating Chances of June Rate Hike

Tuesday, May 17th, 2016

I also urge you to read this research note from Stephen Stanley of Amherst Pierpont Securities which I posted earlier today. Via FT: 2 hours ago by: Sam Fleming in Washington Financial markets are being overly pessimistic about the US outlook and may underestimate the chances of an interest-rate increase as soon as June, ...

Overnight Data Preview

Tuesday, May 17th, 2016

Via Robert Sinche at Amherst Pierpont Securities: CHINA: The April Property Report is likely to show stability, with 40 of 70 cities already reporting price increases in March. JAPAN: The Bberg consensus expects Japan 1Q Real GDP growth at +0.3% (SAAR) versus -1.1% annualized in 4Q, although monthly data suggest the risk ...