Archive for June, 2016

Credit Card Delinquencies on the Rise

Tuesday, June 14th, 2016

Synchrony Financial (formerly GE Capital) announced today that it was seeing more delinquencies from credit card holders and was increasing charge offs to recognize that situation. The stock got whacked and credit card companies declined in sympathy. I wonder if this is a one off for a first small hint of ...

GDP Now

Tuesday, June 14th, 2016

The Atlanta Fed has increased its estimate of Q2 GDP to 2.8 percent from 2.5 percent. Via the Atlanta FED: Latest forecast: 2.8 percent — June 14, 2016 The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2016 is 2.8 percent on June 14, up ...

Long Note on Brexit

Tuesday, June 14th, 2016

Via Robert Sinche at Amherst Pierpont Securities: The Bloomberg article below highlights some of the issues surrounding the implications of Brexit, although some of the quotes seem quite overstated. However, I think it is most important, in my view, that the Brexit vote is more about rejection of the status quo ...

Retail Sales Analysis

Tuesday, June 14th, 2016

Via Millan Mulraine at TDSecurities: ·         Retail sales activity rose a further 0.5% m/m in May, bettering the market consensus for a more modest 0.3% m/m advance. ·         Core spending activity was also impressive, advancing a further 0.4% m/m, following the impressive 1.0% m/m gain the month before. ·         The overall tone of ...

Some Corporate Bond Stuff

Tuesday, June 14th, 2016

Via Bloomberg: IG CREDIT: MSFT, AET Long Bonds Most Active; Spreads Wider Again 2016-06-14 10:00:48.592 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $10.5b vs $10.7b Friday, $13.2b the previous Monday. 10-DMA $15b; 10-Monday moving avg $13.2b. * 144a trading added $2b of IG volume vs $1.7b Friday, $2.4b last Monday * ...

FX

Tuesday, June 14th, 2016

Via Marc Chandler at Brown Brothers Harriman: Capital Markets Remain at UK Referendum's Mercy A spate of opinion polls showing a tilt toward Brexit is keeping the global capital markets on edge The leading UK newspaper is urging the Leave vote on the front page US reports May retail sales ...

MSFT, Corporate Debt and The Tax Code

Tuesday, June 14th, 2016

Via Bloomberg: Maneuver helps tech giant avoid 35% tax to repatriate cash Interest-payment deductions could lower future tax bills Microsoft Corp. has enough cash to buy LinkedIn Corp. four times over. So why is it taking out a big loan to pay for its latest purchase? Maybe because it’ll lower the technology ...

Credit Pipeline

Tuesday, June 14th, 2016

Via Bloomberg: IG CREDIT PIPELINE: 2 Set to Price as List Keeps Growing 2016-06-14 09:38:39.427 GMT By Robert Elson (Bloomberg) -- Set to price today: * Abu Dhabi National Energy (TAQAUH) A3/A-, to price 2-part 144a/Reg-S deal, via BNP/C/FGB/HSBC/NBAD/SG * 5Y, IPT MS +287.5 area * 10Y, IPT MS +337.5 area * Province of Manitoba (MP) Aa2/AA, to price ...

Aging Baby Boomer Alert

Tuesday, June 14th, 2016

Via Bloomberg : Ready to Rock Out at Zeppelin ‘Stairway’ Trial? Try Sheet Music Edvard Pettersson edpettersson June 14, 2016 — 5:00 AM EDT Anyone with Internet access can listen for themselves to whether Led Zeppelin’s opening “Stairway to Heaven” riff rips off a song recorded three years earlier. But the jury deciding the fate of ...

Negativity Pulls Ten Year Bund Through

Tuesday, June 14th, 2016

Via WSJ: By Mike Bird June 14, 2016 3:31 a.m. ET 0 COMMENTS Yields on the 10-year government debt of Germany dipped below zero on Tuesday for the first time on record, in a dramatic sign of the outsize effect of central-bank policy and investors’ search for safe havens. The yield on ...