Archive for July, 2016

Natural Rate

Friday, July 22nd, 2016

Via Bloomberg: The Search for the Elusive Natural Interest Rate The concept guides central bankers like Janet Yellen, but the rate can’t be directly observed. July 22, 2016 — 6:00 AM EDT Financial markets are remarkably strong in a world roiled by terror attacks, a coup attempt in Turkey, murders of police officers in ...

Some Corporate Bond Stuff

Friday, July 22nd, 2016

Via Bloomberg: IG CREDIT: MS, GS Issues Most Active on Client Flows 2016-07-22 09:41:04.316 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $16.8b vs $19.6b Wednesday, $16.6b the previous Thursday. 10-DMA $16.5b; 10-Thursday moving avg $16.6b. * 144a trading added $2.3b of IG volume vs $2.5b on Wednesday, $2.0b last Thursday * ...

Credit Pipeline

Friday, July 22nd, 2016

Via Bloomberg: IG CREDIT PIPELINE: List Grows With Amex, Visa, Nike, TRITOB 2016-07-22 09:27:30.566 GMT By Robert Elson (Bloomberg) -- LATEST UPDATES * Visa (V) A1/A+; CFO says will issue $2b debt for buybacks by yr end (July 21); last seen in Dec. * Nike (NKE) A1/AA-; automatic debt shelf (July 21); has just 3 issues outstanding, last ...

Political Economy

Monday, July 18th, 2016

Via Bloomberg: Stock Market’s Enduring Record of Calling Presidential Races Lu Wang July 18, 2016 — 12:00 AM EDT Updated on July 18, 2016 — 4:06 PM EDT S&P 500 has correctly predicted 19 of 22 elections since 1928 Equities are at a record, but are divorced from the economy   For an idea of how a presidential ...

Some Corporate Bond Stuff

Monday, July 18th, 2016

Via Bloomberg: IG CREDIT: Client, Affiliate Flows Led Volume in Active Issues 2016-07-18 09:47:19.481 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $12.2b Friday vs $16.6b Thursday, $13.1b the previous Friday. 10-DMA $15.3b; 10-Friday moving avg $10.3b. * 144a trading added $2.2b of IG volume Friday vs $2b Thursday, $2.3b last ...

FX

Monday, July 18th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead Four large dramas are being played out among the major high income countries The Republican convention gets under way in the US The drama in Japan is about Abenomics 2.0, which drove the yen 5% lower last week ...

Credit Pipeline

Monday, July 18th, 2016

Via Bloomberg: IG CREDIT PIPELINE: Teva May Open Issuance Week Today 2016-07-18 09:37:17.777 GMT By Robert Elson (Bloomberg) -- Teva Pharmaceutical Industries (TEVA) Baa1/BBB+, mega-deal is expected to come as soon as today, via presumed managers Barclays, BofAML, BNP, CS, HSBC, Mizuho. ** Calls for U.S.-based investors ended Thursday ** Meetings in Europe July 18-19 ** The meetings in ...

Land And Homes a Poor Investment

Monday, July 18th, 2016

Professor Robert Shiller ( co developer of the Case Shiller Index)says that land and houses make for poor long term investments. Why Land and Homes Actually Tend to Be Disappointing Investments By ROBERT J. SHILLER JULY 15, 2016 Buy land: They’re not making it anymore. That often repeated adage sounds like good financial ...

Corporate Profits

Monday, July 18th, 2016

This will be a busy week in the unfolding earnings season. The WSJ reports that ninety major companies will report this week. Estimates are that profits will decline for a fourth consecutive quarter. That would seem like an occurrence which would happen with the economy in recession so one might ...

Angst at Goldman Sachs Fixed Income

Monday, July 18th, 2016

This is an interesting article at Bloomberg which tracks the (relative) woes of the fixed income division at Goldman Sachs which has been bitten by competiors Citibank and JPMorgan. The author blames the fall from grace on Goldman's mix of business. It is a worthwhile read. Via Bloomberg: Dakin Campbell dakincampbell July 18, 2016 — ...