Archive for July, 2016

Public Pension Performance Problems Persist

Sunday, July 10th, 2016

Back from Thomas Jefferson country   Via the WSJ: By Timothy W. Martin, Vipal Monga and Heather Gillers July 10, 2016 7:47 p.m. ET 1 COMMENTS The retirement savings of tens of millions of people have come under new threat since the surprise U.K. vote to leave the European Union, thanks to a plunge in global ...

Stripped Bonds

Friday, July 8th, 2016

Long Bond yields are at lowest levels in recorded human history and there is a food fight to strip them and peel away the coupon. Via Bloomberg: Stripping Treasuries Climbs to 17-Year High to Feed Duration Fix 2016-07-08 12:12:42.751 GMT By Brian Chappatta (Bloomberg) -- Wall Street’s answer to a growing pool of negative-yielding bonds worldwide: ...

More FX

Friday, July 8th, 2016

Via Marc Chandler at Brown Brothers Harriman: Markets Quiet Ahead of US Jobs Data During the North American session, the June jobs data will be the highlight The next UK Prime Minister will be the first woman since Margaret Thatcher Japan reported May current account data overnight Brazil reports June IPCA ...

FX

Friday, July 8th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h10e408d6,1794da86,1794da87&p1=136122&p2=445f309b799d1bb830bd4149305cf396> The link's to the FX weekly. The UK political horizon is clouded with uncertainty as far as the eye can see. The May/Leadsom contest starts now but how/when a new PM invokes Article 50 is a mystery (this year/next year, vote/no vote???), even as we worry ...

Some Corporate Bond Stuff

Friday, July 8th, 2016

Via Bloomberg: IG CREDIT: ORCL Issues Continue to Be Among Most Active 2016-07-08 09:54:41.268 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $16.9b vs $18.5b Wednesday, $19.9b last Thursday. 10- DMA $14.4b; 10-Thursday moving avg $16.4b. * 144a trading added $1.6b of IG volume vs $2.1b on Wednesday, $2.7b last Thursday * ...

Credit Pipeline

Friday, July 8th, 2016

Via Bloomberg: IG CREDIT PIPELINE: TEVA Acceleration Update Added 2016-07-08 09:29:05.568 GMT By Robert Elson (Bloomberg) -- LATEST UPDATES * Teva Pharmaceutical Industries (TEVA) Baa1/BBB+, said to consider accelerating $22b bond sale plan * TEVA ~$40.5b Allergan generics buy * $22b bridge; $5b TL commitment (Nov 18) * EnLink Midstream Partners (ENLK) Ba2/BBB-, had BofAML/JPM/STRH organize investor calls July 6; ...

Initial Claims

Thursday, July 7th, 2016

Via Stephen Stanley at Amherst Pierpont Securities: Anyone looking for evidence in the initial unemployment claims data that the labor market has softened is out of luck.  In the week ended July 2, claims slid by 16,000 to 254,000, the lowest reading since April.  The underlying trend has been remarkably steady ...

Populists Politicians and Italy’s Debt Pile

Thursday, July 7th, 2016

Via Bloomberg: The Rome Olympics of 1960 marked the rebound of the Italian capital after years of war and reconstruction, an affirmation of the country’s renaissance and the city’s emergence as a symbol of dolce vita insouciance. Rome is still paying the bill, and the new mayor, Virginia Raggi, is sick ...

“Reminiscent of Bear Stearns”

Thursday, July 7th, 2016

The Brexit vote has sparked withdrawals by investors from UK based property funds. That outflow has a run on the bank quality to it and Bill Gross has commented that it is reminiscent of the actions at Bearn Stearns hedge funds in the fledgling days of the financial crisis. Via Bloomberg: ...

Some Corporate Bond Stuff

Thursday, July 7th, 2016

Via Bloomberg: IG CREDIT: Volume Higher, Spreads Tighter; ORCL Led Trading 2016-07-07 10:02:51.905 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $18.5b vs $14.5b Tuesday, $17.7b last Wednesday. 10-DMA $14.1b; 10-Wednesday moving avg $17.1b. * 144a trading added $2.1b of IG volume vs $1.9b Tuesday, $2.6b last Wednesday * Most active issues: * ...