Archive for July, 2016

Credit Pipeline

Tuesday, July 12th, 2016

Via Bloomberg: IG CREDIT PIPELINE: 4 to Price, More Wed., More Expected 2016-07-12 09:49:59.466 GMT By Robert Elson (Bloomberg) -- Expected to price today: * KfW (KFW) Aaa/AAA. to price $bench Global 3Y, via managers DB/JPM/TD; guidance MS +11 area * SMBC Aviation Cap Fin (SMBCAC) na/BBB+, to price $bench 144a/Reg-S 5Y, via C/JPM/RBC/SMBC; IPT +200 area * KT ...

Early FX

Tuesday, July 12th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h10ea87f1,179f2f23,179f2f24&p1=136122&p2=3d35ba1320859814ff44a42c6e223901> Really, market folk should know that those all-important father-son conversations need to happen before it's too late. You know, like "Son, can you explain the business model of an app which asks people to wander the earth in search of imaginary pocket-sized monsters?"        ...

Regarding Mortgage Convexity

Monday, July 11th, 2016

Via Bloomberg: For MBS, It’s Different This Time: U.S. Rates/Credit Week Ahead 2016-07-10 11:00:00.1 GMT By Christopher Maloney (Bloomberg) -- With mortgage rates ~50bp lower since the end of 2015 and production coupon (3s, 3.5s) TBA speeds at their highest since at least the first half of 2015, primary risks to the MBS market are a pick-up ...

FX

Monday, July 11th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead Many observers are emphasizing that the weekend election in Japan has given a super-majority to those parties that want to change the constitution Two major central banks meet in the week ahead:  the Bank of Canada and the Bank ...

Corporate Bond Stuff

Monday, July 11th, 2016

Via Bloomberg: IG CREDIT: Above Average Friday Volume; Client Buying Noted 2016-07-11 10:17:40.512 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $13.1b Friday vs $16.9b Thursday, $6.7b the previous Friday. 10-DMA $14.5b; 10-Friday moving avg $10.3b * 144a trading added $2.3b of IG volume Friday vs $1.6b on Thursday, $932m last ...

Bond Bull Turns Neutral

Monday, July 11th, 2016

Via Bloomberg: Morgan Stanley Bond Bulls Who Called Brexit Rally Turn Neutral Wes Goodman richwesgoodman July 10, 2016 — 10:42 PM EDT Updated on July 11, 2016 — 2:26 AM EDT Bank shifts view as U.S., U.K., Germany, Japan yields set lows Treasuries fall Monday after 30-year yield sinks to record   Morgan Stanley, which advised investors to bet ...

Bernanke and Japan

Monday, July 11th, 2016

Via Bloomberg: July 11, 2016 — 5:51 AM EDT BOJ board holds next scheduled meeting on July 28-29 Bernanke visit comes as Abe is preparing fiscal package   Less than three weeks before the Bank of Japan’s next scheduled policy meeting, Governor Haruhiko Kuroda met with former Federal Reserve Chairman Ben S. Bernanke over lunch ...

Early FX

Monday, July 11th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h10e7e14e,179af10a,179af10b&p1=136122&p2=0bf0b629778a8c91d8ca7127a042eccf> Friday's US Labor Report was a great source of comfort to markets. A 287k increase in jobs was far above expectations, but merely offsets the weakness of the previous month when NFP increased by 11k. The 3, 12 and 60 month averages are now 147k, 204k ...

Treasury Market Update

Monday, July 11th, 2016

I was away last week in beautiful Charlottesville Virginia. It is a beautiful part of the country nestled into the foot hills of the Blue Ridge Mountains. Thomas Jefferson lived a stone's throw away from the town and among his many achievements he founded the University of Virginia. My daughter who ...

Interesting Take on Labor Data

Sunday, July 10th, 2016

David Rosenberg formerly worked for Merrill Lynch but has wiled away his time in Canada the last several years. He has some interesting and bearish comments on Friday morning's data. This is an excerpt from the Barron's current yield column: Yet on Friday, the same day Treasury yields hit lows, the major ...