Archive for August, 2016
Tuesday, August 23rd, 2016
Via Marc Chandler at Brown Brothers Harriman:
Dollar Fades Ahead of Yellen
During the North American session, the US reports August Markit manufacturing PMI and Richmond Fed manufacturing index, as well as July new home sales
Flash eurozone PMIs for August were reported
UK CBI reported manufacturing orders for ...
Posted in Uncategorized | Comments Off on FX
Tuesday, August 23rd, 2016
If I had more space in the title I would have subtitled the piece "Take That Thomas Piketty"! Anyway this is a long piece via the WSJ which chronicles wage gains at the low end of the labor market and posits that companies companies can benefit from improved worker morale ...
Posted in Uncategorized | Comments Off on Might There Be A Whiff of Wage Inflation Coursing Through the Macroeconomic Air?
Tuesday, August 23rd, 2016
Yields are at the lowest levels since man first learned to walk erect and investors are craving more duration. Tis a world gone mad I say.
Via Bloomberg:
August 23, 2016 — 5:53 AM EDT
Market makers also prefer longer-maturity gilts, DMO says
Consultation follows failed QE operation by BOE 2 weeks ago
Investors’ appetite ...
Posted in Uncategorized | Comments Off on UK Investors Crave Duration
Tuesday, August 23rd, 2016
Via Bloomberg:
IG CREDIT PIPELINE: 2 Set to Price as List Grows Longer
2016-08-23 09:57:42.538 GMT
By Robert Elson
(Bloomberg) -- Set to price today
* European Investment Bank (EIB) Aaa/AAA, to price $bench
Global 5Y, via managers BAML/HSBC/JPM; spread set at MS +27
* Hyundai Capital Services (HYUCAP) Baa1/A1, to price $bench
144a/Reg-S 3Y, via BAML/BNP/HSBC/MUFG; guidance ...
Posted in Uncategorized | Comments Off on Credit Pipeline
Tuesday, August 23rd, 2016
Via Kit Juckes at SocGen
<http://www.sgmarkets.com/r/?id=h1130f6d0,1812ca2a,1812ca2b&p1=136122&p2=d6213f5d8d9d869574e55649e85e716a>
[*] The yield-hunters are back in charge
Yet again, US Treasuries have been unable to maintain higher yields and yet again, that's brought USD/JPY back to the brink of 100. Which in turn, has dragged long-dated JGB yields and the Nikkei lower, as well as give the ...
Posted in Uncategorized | Comments Off on Early FX
Monday, August 22nd, 2016
Via Marc Chandler at Brown Brothers Harriman:
Drivers for the Week Ahead
Fed chair Yellen speaks at the annual Jackson Hole Symposium on Friday
Merkel has to protect both her flanks; flash eurozone PMIs will be reported
Markets will be closely listening to BOJ’s Kuroda when he speaks on August ...
Posted in Uncategorized | Comments Off on FX
Monday, August 22nd, 2016
Via Bloomberg:
IG CREDIT: Volume Falls as Spreads Hit New Tight Levels for 2016
2016-08-22 09:53:51.482 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $9b Friday vs $15b Thursday, $10.3b the previous
Friday. 10-DMA $13.7b.
* 144a trading added $966m of IG volume vs $1.5b Thursday,
$1.7b last Friday
* The most ...
Posted in Uncategorized | Comments Off on Credit Spread at New Tights
Monday, August 22nd, 2016
Via Bloomberg:
IG CREDIT PIPELINE: Little Expected in Week; Sept. Will Be Big
2016-08-22 09:31:38.162 GMT
By Robert Elson
(Bloomberg) -- LATEST UPDATES
* Pfizer (PFE) A1/AA, said to be near $14b deal to buy
Medivation (MDVN)
* Industrial Bank of Korea (INDKOR) Aa2/AA-, mandates HSBC/Nom
for roadshow from Aug. 22; 144a/Reg-S deal may follow
* Cabot Corp (CBT) ...
Posted in Uncategorized | Comments Off on Credit Pipeline
Monday, August 22nd, 2016
In the orgy of bearishness that has enveloped the market I would be remiss if I did not note that 2s 5s 10s is positive for the first time since late June. I clocked that spread at +0.6 basis points about thirty minutes ago. Steve Feiss of Government Perspectives (@stevefeiss)kindly ...
Posted in Uncategorized | Comments Off on Bearish Butterfly
Monday, August 22nd, 2016
The WSJ has posted about the desperate measures pension funds will take to garner some returns. In this one the article tells the tale of pension funds who are writing puts on equities to generate income. That strategy works quite well until one day you wake up and it is ...
Posted in Uncategorized | Comments Off on Yield Whores Sell Their Souls