Archive for June, 2016

Some Corporate Bond Stuff

Thursday, June 30th, 2016

Via Bloomberg: IG CREDIT: Trading Volume Grows Higher Still, Spreads Tighter 2016-06-30 09:49:18.52 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $17.7b vs $16.7b Tuesday, $13.9b last Wednesday. 10-DMA $13.2b; 10-Wednesday moving avg $17.2b. * 144a trading added $2.6b of IG volume vs $2.7b on Tuesday, $2.3b last Wednesday * Most active ...

Credit Pipeline

Thursday, June 30th, 2016

Via Bloomberg: IG CREDIT PIPELINE: HALKBK to Price; TSELEC, POT Added to List 2016-06-30 09:27:22.384 GMT By Robert Elson (Bloomberg) -- Expected to price today: * Turkiye Halk Bankasi AS (HALKBK) Baa3/na/BBB-, to price $bench 144a-Reg-S 5Y, via managers Bank ABC/C/Emirates NBD/GS/ HSBC/UniCredit; IPT 5.30% area LATEST UPDATES * Potash Corp Of Saskatchewan (POT) A3/BBB+, files automatic debt shelf; last ...

If You Know How Many You Own, Then You Don’t own Enough

Thursday, June 30th, 2016

This WSJ article notes the outsized returns this quarter of the government bonds if many developed country. The article also points out the inverse relationship between price and yields if you happen to be reading about bonds for the first time. Via WSJ: By Mike Bird and Christopher Whittall June 29, 2016 7:33 p.m. ...

Headwinds for Auto Companies

Thursday, June 30th, 2016

Via Bloomberg: June 30, 2016 — 5:00 AM EDT Prospects for another record year in U.S. auto sales are diminishing as car buyers already concerned about job and income growth get something new to worry about: Brexit-spooked financial markets. “There certainly is a higher probability of having a slightly down year than there ...

Soros on Brexit

Thursday, June 30th, 2016

Via Bloomberg: Britain’s decision to leave the European Union has “unleashed” a crisis in financial markets similar to the global financial crisis of 2007 and 2008, George Soros told the European Parliament in Brussels on Thursday. “This has been unfolding in slow motion, but Brexit will accelerate it. It is likely to ...

China to Tolerate Cheaper Yuan

Thursday, June 30th, 2016

Via Reuters: Markets | Thu Jun 30, 2016 4:45am EDT Exclusive: China to tolerate weaker yuan, wary of trade partners' reaction - sources BEIJING/SHANGHAI | By Kevin Yao, Nathaniel Taplin and Lu Jianxin China's central bank is willing to let the yuan fall to 6.8 per dollar in 2016 to ...

Consumer Spending

Wednesday, June 29th, 2016

Via TDSecurities: US: Consumer Spending Back on Track - For Now ·         Personal spending rose at a very respectable 0.4% m/m pace in May, coming on the heels of the upwardly revised 1.1% m/m surge the month before. ·         The inflation picture, however, remained relatively benign with core inflation unchanged at 1.6% y/y. ·         The ...

Near Term Course of FOMC Policy

Wednesday, June 29th, 2016

Via Bloomberg: Forget December. Forget Next Year. Fed Done Hiking Until 2018 Liz McCormick mccormickliz Matthew Boesler boes_ June 28, 2016 — 7:00 PM EDT Updated on June 29, 2016 — 12:42 AM EDT   Circle Jan. 31, 2018, on the calendar. That’s the soonest the Federal Reserve hikes next.   At least if money market derivatives are to be believed. Traders, ...

Don’t Sweat Higher Rates

Wednesday, June 29th, 2016

Via Barron's: Why Bond Investors Don’t Have to Fear Higher Rates Generally, the greater yield earned in a rising-rate environment offsets the fall in bond prices those rates cause. By Mark Hulbert June 29, 2016 6:12 a.m. ET   Are you avoiding bonds because of the near certainty that interest rates will be higher in the future? Welcome ...

Could Sterling Lose Reserve Currency Status?

Wednesday, June 29th, 2016

Via WSJ: By Mike Bird Updated June 28, 2016 8:09 p.m. ET 3 COMMENTS Britain’s vote to leave the European Union knocked sterling to the lowest in decades and could now erase a distinction that is centuries-old: its status as a reserve currency. In the two sessions after last Thursday’s Brexit vote, the pound fell ...