Archive for August, 2016
Thursday, August 11th, 2016
Via Noah Smith at Bloomberg:
Asymmetric Information Is Economists' Little Secret: Noah Smith
2016-08-11 11:00:05.324 GMT
By Noah Smith
(Bloomberg View) -- There’s a very deep, important concept
in economics that gets way too little attention from the public
(and possibly from economists themselves). This is the idea of
asymmetric information. The concept has been around for ...
Posted in Uncategorized | Comments Off on Asymmetric Information
Thursday, August 11th, 2016
Via Ian Lyngen:
We are apprehensive about this afternoon’s long-bond Refunding auction and are anticipating a tail – assuming that the modest intraday concession isn’t enough of an incentive to attract recently absent overseas interest, which tends to be small for the 30-year sector. Refunding 30-years have a long history of ...
Posted in Uncategorized | Comments Off on Long Bond Auction Today
Thursday, August 11th, 2016
Via Bloomberg:
China Net Capital Outflows Accelerate to $39b in July, IIF Says
2016-08-11 13:25:17.780 GMT
By Sangwon Yoon
(Bloomberg) -- Last month marked largest net outflows in 6
months, while the pace was far lower than during Dec. 2015 and
Jan., Institute for International Finance says in e-mailed note.
* China’s FX reserves fell to $3.2t ...
Posted in Uncategorized | Comments Off on China Capital Outflows
Thursday, August 11th, 2016
Via Bloomberg:
IG CREDIT: Volume Lower; Client Allocations at Record High
2016-08-11 10:33:20.250 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $15.6b vs $16,2b Tuesday, $17.8b the previous
Wednesday. 10-DMA $15b.
* 144a trading added $2.2b of IG volume vs $2.1b Tuesday,
$2.1b last Wednesday
* The most active issues:
* ECOPET 5.875% ...
Posted in Uncategorized | Comments Off on Allocation to Credit at Record High
Thursday, August 11th, 2016
Via Bloomberg:
IG CREDIT PIPELINE: Westpac 5-Part Deal Expected to Price Today
2016-08-11 09:58:34.334 GMT
By Robert Elson
(Bloomberg) -- Expected to price today:
* Westpac Banking Corp (WSTP) Aa2/AA-, to price $bench 5-part
deal, via managers BAML/C/HSBC/MS
* 3Y, IPT +90 area; 3Y FRN, IPT equiv
* 5Y, IPT +100 area; 5Y FRN, IPT equiv
* 10Y, IPT ...
Posted in Uncategorized | Comments Off on Credit Pipeline
Thursday, August 11th, 2016
Via Marc Chandler at Brown Brothers Harriman:
Sterling Struggles to Find a Bid, While RBNZ Can't Knock Kiwi Down
The US dollar has found steadier footing today after trading heavily yesterday
The RBNZ delivered a 25 bp cut in the cash rate and NZD rallied
We think the risk of a ...
Posted in Uncategorized | Comments Off on FX
Thursday, August 11th, 2016
Via The Hill.com:
By Sarah Ferris - 08/11/16 06:02 AM EDT
The next president could be dealing with an ObamaCare insurer meltdown in their very first month.
The incoming administration will take office just as the latest ObamaCare enrollment tally comes in, delivering a potentially crucial verdict about the still-shaky healthcare marketplaces.
The fourth ...
Posted in Uncategorized | Comments Off on Death Spiral
Thursday, August 11th, 2016
Via Bloomberg:
August 11, 2016 — 5:43 AM EDT
The European Central Bank may need to rely more on asset purchases for monetary stimulus as its negative interest rates approach the limit of their effectiveness, economists at the International Monetary Fund said.
While negative rates in the euro area have successfully eased financial ...
Posted in Uncategorized | Comments Off on IMF on Effectiveness of Negative Rates
Thursday, August 11th, 2016
Via WSJ:
By Summer Said
Aug. 11, 2016 4:00 a.m. ET
1 COMMENTS
The International Energy Agency on Thursday trimmed its forecast for the rise in global oil demand next year on a dimmer economic outlook, warning that the “massive” stock overhang is keeping a lid on crude oil prices.
In its closely watched monthly ...
Posted in Uncategorized | Comments Off on IEA on Oil Prices
Thursday, August 11th, 2016
Via Kit Juckes at SocGen:
One massive typo in the weblink, one sharp move as Kiwi shorts scrambled for cover. One bond rally that has new British wind its sails. And a slow but steady search for yield that drives markets on. It's a quiet August this year but one with ...
Posted in Uncategorized | Comments Off on FX