Archive for August, 2016

Asymmetric Information

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 ...

Long Bond Auction Today

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 ...

China Capital Outflows

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 ...

Allocation to Credit at Record High

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% ...

Credit Pipeline

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 ...

FX

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 ...

Death Spiral

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 ...

IMF on Effectiveness of Negative Rates

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 ...

IEA on Oil Prices

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 ...

FX

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 ...