Archive for June, 2016

Peripheral Spreads

Tuesday, June 14th, 2016

Fear has once again gripped markets with peripheral spreads melting down. As I noted at this hour yesterday I follow Italy and Spain in the 10 year sector versus US to gauge sentiment. By that metric markets are less than festive this morning. Last Thursday morning I had clocked 10 ...

MSFT to Finance Deal With Debt

Monday, June 13th, 2016

Via Bloomberg: BN 06/13 12:37 *MSFT SEES DEAL ADDING ADJ. EPS IN FY19/LESS THAN 2 YR POST DEAL BN 06/13 12:37 *MSFT SEES BUY HAVING MINIMAL DILUTION ~1% FOR REST OF FY2017 BFW 06/13 12:36 *MICROSOFT TO FINANCE DEAL WITH ISSUE OF NEW DEBT BN 06/13 12:36 *MICROSOFT SEES BUY HAVING MINIMAL DILUTION ABOUT ...

MSFT to Buy Linked In

Monday, June 13th, 2016

Via Bloomberg: BN 06/13 12:31 *MICROSOFT TO BUY LINKEDIN FOR $196/SHR IN AN ALL-CASH DEAL BN 06/13 12:31 *MICROSOFT TO BUY LINKEDIN IN TRANSACTION VALUED AT $26.2B BN 06/13 12:31 *MICROSOFT TO BUY LINKEDIN IN DEAL VALUED AT $26.2B BFW 06/13 12:31 *MICROSOFT TO BUY LINKEDIN BN 06/13 12:31 *MICROSOFT TO BUY LINKEDIN FOR $196/SHR BN ...

FX

Monday, June 13th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead The risk that the UK votes to leave the EU next week is the dominant force in the capital markets The May employment data pushed expectations away from this week's meeting To what extent does the Fed ...

Some Corporate Bond Stuff

Monday, June 13th, 2016

Via Bloomberg: IG CREDIT: Trading Volume Lower as Spreads Leak Wider 2016-06-13 09:42:42.567 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $10.7b Friday vs $15.8b Thursday, $12.1b the previous Friday. 10-DMA $14.5b; 10-Friday moving avg $12.1b. * 144a trading added $1.7b of IG volume Friday vs $3.2b Thursday, $2.3b last Friday * ...

Credit Market Pipeline

Monday, June 13th, 2016

Via Bloomberg: IG CREDIT PIPELINE: KOREAT Added to List, TAQA May Be Soon 2016-06-13 09:23:03.283 GMT By Robert Elson (Bloomberg) -- LATEST UPDATES * KT Corp (KOREAT) Baa1/A-, schedules investor meetings June 16-24, via BNP/BAML/C/Nom, for possible USD 144a/Reg-S * Abu Dhabi National Energy (TAQAUH) A3/A, investor meetings via BNP/C/FGB/HSBC/NBAD/SG end today; $bench 144a/Reg-S 5Y and/or 10Y issues may follow ...

Which labor Market Indicator is Correct?

Monday, June 13th, 2016

Via the NYTimes: Which Labor Market Data Should You Believe? Binyamin Appelbaum @BCAppelbaum JUNE 13, 2016 When the unemployment rate falls below 5 percent, it usually means things are going pretty well. It was 4.7 percent in May, a level last seen in November 2007. A different measure of the ...

Morgan Stanley and Goldman Sachs Clash on Rates

Monday, June 13th, 2016

Via Bloomberg: June 12, 2016 — 8:09 PM EDT Updated on June 13, 2016 — 1:47 AM EDT Morgan Stanley says 2016’s bond market rally has further to run. Goldman Sachs Group Inc. says benchmark Treasury yields may be poised to jump. The biggest stories of the day, every day. The two fixed-income powerhouses are ...

Peripheral Pressure

Monday, June 13th, 2016

I have just marked prices as the new day dawns and European peripherals remain under pressure. I specifically follow 10 year Spain and 10 year Italy versus US. ten year Spain is opening 15 rich to the US. At this hour on Friday the spread was 24 and on Thursday ...

Early FX

Monday, June 13th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h10b3f115,17496f3b,17496f3c&p1=136122&p2=b1ee35b127bb3b47b68b31093b511a00> The release of an opinion poll on Friday showing the widest margin so far in favour of the UK leaving the EU resulted in the pound getting a drubbing ahead of the weekend, and while the most recent poll I've seen shows that gap in favour ...