Archive for September, 2016
Tuesday, September 13th, 2016
Via Bloomberg:
IG CREDIT PIPELINE: 5 Triple-A Names to Price; List Grows Again
2016-09-13 10:02:16.250 GMT
By Robert Elson
(Bloomberg) -- Expected to price today:
* World Bank (IBRD) Aaa/AAA, to price $bench Global 5Y, via
managers C/DB/JPM/RBC; final spread MS +20
* Bank Nederlandse Gemeenten (BNG) Aaa/AAA, to price $bench
144a/Reg-S 2Y, via Daiwa/MS/RBC/TD; spread set at ...
Posted in Uncategorized | Comments Off on Credit Pipeline
Tuesday, September 13th, 2016
Via WSJ:
By Benoit Faucon
Sept. 13, 2016 4:00 a.m. ET
1 COMMENTS
The International Energy Agency on Tuesday sharply cut its forecast for global oil demand for this year and the next amid what it called “wobbling” Asian demand.
The fresh data is set to intensify the debate between oil producers later this month ...
Posted in Uncategorized | Comments Off on Forecast of Oil Demand for Reduced
Tuesday, September 13th, 2016
Via Kit Juckes at SocGen:
<http://www.sgmarkets.com/r/?id=h11513852,1847e297,1847e298&p1=136122&p2=d1e3e3d0d913e0e042368a93c607811c>
The Fed's Lael Brainard confounded expectations that she would set the scene for a rate hike next week, sounding more dovish then most expected. She emphasised asymmetrical risks in tightening vs easing policy from here, suggested the neutral real interest rate is now around zero and ...
Posted in Uncategorized | Comments Off on FX
Tuesday, September 13th, 2016
Via Bloomberg:
Banks May Face 10% Basel Capital Requirement Increase, Heim Says
Cindy Roberts
crobertsCH
Fabio Benedetti Valentini
Societe Generale’s Heim commented on Basel revamp in New York
Basel debate focused on defining ‘significant’ increase
Banks may face an increase of about 10 percent in their capital requirements as a result of the overhaul of risk-assessment rules ...
Posted in Uncategorized | Comments Off on Increased Capital Requirements
Tuesday, September 13th, 2016
This WSJ story argues that recent market tumult will make it more difficult for the Fed to raise rates. I think the FOMC should stop playing monetary Hamlet, grow a set of testicular appendages, and raise rates.
Via the WSJ:
By Justin Lahart
Updated Sept. 12, 2016 2:25 p.m. ET
10 COMMENTS
Calm returned to ...
Posted in Uncategorized | Comments Off on Markets and the Rate Hikes
Tuesday, September 13th, 2016
I just marked the Treasury complex and the overnight up trade has unwound some of the cheapness of the Long Bond. The Treasury will auction $12 billion crisp new bonds today via a reopening of the current Long Bond. The 5s 30s spread is at 117 versus 118.9 at the ...
Posted in Uncategorized | Comments Off on Curvology
Monday, September 12th, 2016
Via Jon Hilsenrath at the WSJ:
By Jon Hilsenrath
Sept. 12, 2016 6:48 p.m. ET
36 COMMENTS
Federal Reserve officials, lacking a strong consensus for action a week before their next policy meeting, are leaning toward waiting until late in the year before raising short-term interest rates.
It is a close call. But with inflation ...
Posted in Uncategorized | Comments Off on Hilsenrath Article
Monday, September 12th, 2016
Via Bloomberg:
Why the Bond Rout Is Going to Get Worse
Stretched bond valuations, waning impact from quantitative easing, and rising importance of fiscal policy. Oh my.
Tracy Alloway
tracyalloway
Luke Kawa
LJKawa
September 12, 2016 — 8:41 AM EDT
Yields on 10-year U.S. Treasuries have been doing their best impression of a soaring eagle in recent days, ...
Posted in Uncategorized | Comments Off on Goldman on Why the Bond Rout is Likely to Continue
Monday, September 12th, 2016
Via Stephen Stanley at Amherst Pierpont Securities:
For some strange reason, there were a number of commentators who argued that Fed Governor Brainard, an arch-dove, had scheduled a speech for today so that she could do a dramatic heel-turn (a la pro wrestling) and signal that a rate hike was coming ...
Posted in Uncategorized | 1 Comment »
Monday, September 12th, 2016
Via Ian Lyngen :
We are apprehensive about this afternoon’s 10-year auction and expect non-dealer interest to be a significant test of overseas demand for the sector in the current bearish move. We see the risks skewed toward a tail even though we’ve arguably seen a meaningful pre-auction concession. Foreign awards ...
Posted in Uncategorized | Comments Off on Ten Year Auction Preview