Archive for June, 2016

Some Corporate Bond Stuff

Thursday, June 16th, 2016

Via Bloomberg: IG CREDIT: Lowest Volume Wednesday Session Since December 2016-06-16 09:37:57.974 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $15.5b vs $13.9b Tuesday, $18.3b the previous Wednesday. Secondary IG trading lowest of any Wednesday since $3.4b on Dec. 30, 2015. * 10-DMA $14.6b; 10-Wednesday moving avg $17.8b * 144a trading added ...

Credit Pipeline

Thursday, June 16th, 2016

Via Bloomberg: IG CREDIT PIPELINE: OZRK Sub 10Y May Price Today 2016-06-16 09:25:23.73 GMT By Robert Elson (Bloomberg) -- LATEST UPDATES * Bank of the Ozarks (OZRK), expected to price $125m subordinated 10Y hybrid, via Sandler O’Neill * KT Corp (KOREAT) Baa1/A-, schedules investor meetings June 16-24, via BNP/BAML/C/Nom, for possible USD 144a/Reg-S * ITC Holdings (ITC) Baa2/BBB+, held investor ...

Peripheral Spreads

Thursday, June 16th, 2016

The dramatic reversal in spreads on peripheral European bonds continues unabated. I just clocked 10 year Spain trading 4 basis points cheap to US (1.60 Spain vs 1.56 US). Yesterday morning that spread was - 10 (Spain rich to US) and last Thursday morning Spain was 29 rich to US ...

PPI and CPI

Wednesday, June 15th, 2016

Via Stephen Stanley at Amherst Pierpont Securities: The May headline PPI rose by 0.4% while the core component advanced by 0.3%, in both cases firmer than expected.  The bulk of the surprise came within the core and reflected, among other things, a 1.4% jump in wholesalers’ margins, which, as I have ...

Industrial Production

Wednesday, June 15th, 2016

Via Stephen Stanley at Amherst Pierpont Securities: Industrial production slid by 0.4% in May, a couple ticks worse than expected.  Factory output also declined by 0.4%, mainly due to a fall in motor vehicle output.  The employment figures had pointed to a small increase in factory production excluding autos, but the ...

Client Allocation to Corporates at Record Levels (Still)

Wednesday, June 15th, 2016

Via Bloomberg: IG CREDIT: Client Allocations to Corporates Stay at Record High 2016-06-15 16:57:04.393 GMT By Robert Elson (Bloomberg) -- Client allocations to corporate bonds held steady at record 36.4% in the latest SMR Money Manager Survey. * “Corporate allocations have averaged 35.9% so far this year, ranging from 35.5% to 36.4%” * “Over the past five years, ...

Some Corporate Bond Stuff

Wednesday, June 15th, 2016

Via Bloomberg: IG CREDIT: Long Bonds Among Most Active Issues; Spreads Wider 2016-06-15 09:45:22.962 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $13.9b vs $10.5b Monday, $16.9b the previous Tuesday. 10-DMA $14.7b; 10-Tuesday moving avg $17b. * 144a trading added $3.0b of IG volume vs $2.0b on Monday, $4.6b last Tuesday * ...

What to Watch for Today

Wednesday, June 15th, 2016

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 7:00am: MBA Mortgage Applications, June 10 (prior 9.3%) * 8:30am: PPI Final Demand m/m, May, est. 0.3% (prior 0.2%) * PPI Ex Food and Energy m/m, May, est. 0.1% (prior 0.1%) * PPI Ex Food, Energy, Trade m/m, May, est. 0.1% (prior 0.3%) * PPI Final Demand ...

FX

Wednesday, June 15th, 2016

Via Marc Chandler at Brown Brothers Harriman: Four Developments Ahead of the FOMC Meeting The FOMC meeting, with updated economic projections and a press conference, is the key event of the day First, MSCI has chosen not to include China's A shares in its emerging market indices Second, there are no ...

Larry Summers on the Fed

Tuesday, June 14th, 2016

Via the Washington Post: Larry Summers: The Fed Is Making the Same Mistakes Over And Over Again 2016-06-14 19:31:53.923 GMT By Lawrence H. Summers June 14 (Washington Post) -- As the Federal Reserve meets today and tomorrow, I am increasingly convinced that while they have been making reasonable tactical judgement, their current strategy is ill adapted to ...