Archive for June, 2016

Aging Baby Boomer Alert

Sunday, June 12th, 2016

Via the BBC: Eric Clapton 'struggles to play guitar' 12 June 2016   Rock star Eric Clapton has said damage to his nervous system is making it difficult to play the guitar. The acclaimed musician told Classic Rock magazine he "can still play" but added it was "hard work". "I've had quite a lot of ...

Eight Years at Zero is Unnatural

Sunday, June 12th, 2016

Via the WSJ: By Harriet Torry Updated June 12, 2016 1:10 p.m. ET While Federal Reserve officials debate when to next raise short-term interest rates, they are also wrestling with the question of how high to lift them in coming years. Signs point toward the new normal being much lower than in the past, ...

Conventional Wisdom Holds That Rates Can Grind Lower

Sunday, June 12th, 2016

This WSJ story lays out all the reasons why rates can move lower. Inflation is low and there is no credible case for it to surge. Global economies are less than festive. Central bank quantitative ease has taken bonds off the market and has forced investors into alternatives such as ...

Safe Haven Demand for Bunds

Saturday, June 11th, 2016

Via Bloomberg: Yield spreads to Spanish, Italian debt widen on haven demand Gains to come from the periphery: Standard Life Investments Investors are showing little appetite for repeating the rebellion against record-low government bond yields in Europe that peaked this time last year. As faith in central bankers’ ability to boost economic ...

IMF Warns on China Debt Mountain

Saturday, June 11th, 2016

Via the WSJ: By Mark Magnier Sexta-Feira, 10 de Junho de 2016 22:45 EDT BEIJING—Soaring corporate debt is a serious and worsening problem in China that needs to be tackled quickly if Beijing wants to avoid potential systemic risk to itself and the global economy, a senior International Monetary Fund official warned. While China’s ...

Period Careening Toward Same Fate As Dodo Bird

Friday, June 10th, 2016

Via the NYTimes: LONDON — One of the oldest forms of punctuation may be dying The period — the full-stop signal we all learn as children, whose use stretches back at least to the Middle Ages — is gradually being felled in the barrage of instant messaging that has become synonymous with ...

Dealer Positions

Friday, June 10th, 2016

Via Bloomberg: IG CREDIT: Corporate Dealer Positions Rose, Led by 5Y-10Y Area 2016-06-10 10:29:20.158 GMT By Robert Elson (Bloomberg) -- Dealer positions in corporate bonds rose $3.5b to $19.5b as of June 1, according to Fed NY release. * $6.5b low Oct. 2015; high $45.9b March 2014. * Investment grade positions: * Very short issues rose $1.2b to ...

Some Corporate Bond Stuff

Friday, June 10th, 2016

Via Bloomberg: IG CREDIT: Volume Lower, Spreads Steady 2016-06-10 09:57:42.473 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $15.8b vs $18.3b Wednesday, $18.6b the previous Thursday. 10-DMA $15.1b; 10-Thursday moving avg $17.2b. * 144a trading added $3.2b of IG volume vs $3.5b Wednesday, $3.7b last Thursday * The most active issues: * ABIBB ...

FX

Friday, June 10th, 2016

Via Marc Chandler at brown Brothers Harriman: Dollar Remains Firm, Yen May Be Drawing Support from Brexit Fears In an otherwise light North American economic calendar, Canada reports May jobs data In Europe, the main economic data were French and Italian industrial output figures for April A combination of Brexit ...

Credit Pipeline

Friday, June 10th, 2016

Via Bloomberg: IG CREDIT PIPELINE: Expect More Heavy Issuance Next Week 2016-06-10 09:36:25.149 GMT By Robert Elson (Bloomberg) -- LATEST UPDATES * Ooredoo (QTELQD) A2/A-, has mandated ANZ/BAML/Citi/DBS/HSBC/Miz/MUFG/QNB to arrange investor meetings to begin June 10; USD 144a/Reg-S transaction may follow * 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 ...