Archive for September, 2016

Some Corporate Bond Stuff

Tuesday, September 6th, 2016

Via Bloomberg: IG CREDIT: Low Volume Friday, Market Braces for Issuance Flood 2016-09-06 10:17:54.747 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $5.6b Friday vs $12.8b Thursday, $9.4b the previous Friday. 10-DMA $13b; 10-Friday moving avg $10.4b. * 144a trading added $581m of IG volume Friday vs $1.5b Thursday, $1.1b last ...

Credit Pipeline

Tuesday, September 6th, 2016

Via Bloomberg: IG CREDIT PIPELINE: 5 Set to Price, Two Mandates 2016-09-06 10:01:47.346 GMT By Robert Elson (Bloomberg) -- Expected to price today: * Korea Development Bank (KDB) Aa2/AA, to price $bench 2-part deal, via managers BNP/GS/HSBC/JPM/SCB/UBS * 3Y, IPT Low-70s * 10Y, IPT Low-70s * BNZ International Funding, London (BZLNZ) Aa3/AA-, to price $bench 144a/Reg-S 5Y fixed and/or FRN, ...

Morgan Stanley and Goldman Duke It Out

Tuesday, September 6th, 2016

Via Bloomberg: Goldman raises odds of Fed hike to 55% after payrolls report Morgan Stanley says lack of price pressures to stay Fed’s hand The divide has grown between Goldman Sachs Group Inc. and Morgan Stanley over the likelihood of higher U.S. interest rates this month thanks to a payrolls report ...

Libor Surge and China

Tuesday, September 6th, 2016

Via Bloomberg: Higher borrowing rate encouraging firms to repay dollar debt U.S. benchmark has climbed to seven-year high amid reforms Add the dollar London Interbank Offered Rate to risks affecting the yuan. A surge in the U.S. borrowing benchmark to a seven-year high is making it more expensive for Chinese companies to ...

JGB Rout

Tuesday, September 6th, 2016

Via Tracy Alloway at Bloomberg: Tracy Alloway tracyalloway September 6, 2016 — 4:21 AM EDT Investors have been stealthily shedding Japanese government bonds, pushing yields on the benchmark 10-year security to their highest in almost six months. JGBs have recorded their worst monthly performance since 2010 with longer-dated debt under particular pressure as investors fret ...

Early FX

Tuesday, September 6th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h1143ba10,1832b715,1832b716&p1=136122&p2=a2c388783804bffe07539a022690a8ea> Yesterday, the market attached a 4% chance to a rate cut at today's RBA meeting. There was indeed no policy change at Governor Glenn Stevens' last meeting in charge. The policy meeting statement observed that inflation is low, and that an appreciating currency could complicate the ...

Central Banks Should Buy Equities

Monday, September 5th, 2016

Via WSJ: By Brian Blackstone and Tom Fairless Updated Sept. 5, 2016 2:00 p.m. ET 8 COMMENTS Central banks have become some of the biggest investors in bond markets. Now some in the financial markets think stocks should benefit more from their largesse. Some economists say the European Central Bank, which meets Thursday to decide if ...

Long Junk A Crowded Trade

Monday, September 5th, 2016

Via the WSJ: By Corrie Driebusch Sept. 5, 2016 2:45 p.m. ET 1 COMMENTS High-yield corporate bonds have been a hot investment in 2016. Now, some investors are fretting that the debt may have gotten too popular. Drawn by higher yields than on safer bonds and lower valuations than on stocks, portfolio managers and individuals ...

More FX

Monday, September 5th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead The last two weeks have been about the US.  First, it was Jackson Hole.  The leadership of the Federal Reserve, Yellen, Dudley, and Fischer sang from the same songbook.  They all signaled that the time was approaching to take another ...

Early FX

Monday, September 5th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h11416839,182ef6bb,182ef6bc&p1=136122&p2=dd2ca39b663602f6bcef8d22d52a8290> The big event to kick September off was a non-event. Non-farm payrolls increased by 151k, a bit less than expected, leaving the 3, 12 and 609-m,onth averages at 232k, 204k and 208k respectively. Focus on the 12 and 60-month averages, which remain incredibly steady and deliver ...