Archive for September, 2016
Sunday, September 11th, 2016
Via WSJ:
By Tom Fairless
Updated Sept. 11, 2016 1:07 p.m. ET
3 COMMENTS
FRANKFURT—In their battle against high inflation, governments granted significant independence to central banks over recent decades.
Now, some economists argue that same independence could be hampering their ability to combat the current era’s problem: inflation that’s too low.
To safeguard their independence, ...
Posted in Uncategorized | Comments Off on Independent Central Banks and the Low Inflation Problem
Sunday, September 11th, 2016
Via David Ader in Barron's:
Economic Beat
Why Long Rates Will Stay Subdued
The Fed’s insistence on higher rates despite weak growth suggests it wants to curb enthusiasm for risk.
By
David Ader
September 10, 2016
If the most recent employment report wasn’t disappointing enough for economic optimists, the downward revision in second-quarter output and the third ...
Posted in Uncategorized | Comments Off on Don’t Fade Lower for Longer In Long End
Saturday, September 10th, 2016
Via Barrron's:
By
Amey Stone
September 10, 2016
“Frothy” is a good word to describe last week’s high-yield market. The seven-month return for the sector reached 20%—remarkably high for bonds. Average yields, which move in the opposite direction of prices, fell to just 6%, down from 10% in February. Companies rated below investment ...
Posted in Uncategorized | Comments Off on Expensive Junk
Friday, September 9th, 2016
Via Bloomberg:
IG CREDIT PIPELINE: ASIA TAP to Price; Shire Details Emerge
2016-09-09 09:52:28.495 GMT
By Robert Elson
(Bloomberg) -- Expected to price today:
* Asian Development Bank (ASIA) Aaa/AAA, to re-open $500m
6/16/2021 Global MTN FRN, via managers DB/JPM; IPT 3ML +19
area
LATEST UPDATES
* Shire (SHPLN) Baa3/BBB-, plans 5-part bond offering to
partially fund Baxalta deal
* Investor ...
Posted in Uncategorized | Comments Off on Credit Pipeline
Friday, September 9th, 2016
Via WSJ:
By Ryan Tracy and
Liz Hoffman
Updated Sept. 8, 2016 7:20 p.m. ET
9 COMMENTS
Two U.S. financial regulators pressed for new limits on banks’ involvement in commodities and other businesses outside traditional lending, a move that could hit Goldman Sachs Group Inc. and some of its large peers.
The moves on Thursday amounted ...
Posted in Uncategorized | Comments Off on Reining in the Banks
Friday, September 9th, 2016
Via Bloomberg:
Should Markets Brace for Rising Rates Imminently?
DoubleLine Capital Chief Investment Officer Jeffrey Gundlach said it’s time for fixed-income investors to prepare for rising interest rates and higher inflation by reducing the duration of their positions, moving money into cash and protecting against volatility.
“This is a big, big moment,” Gundlach ...
Posted in Uncategorized | Comments Off on Gundlach Thinks Rates Have Bottomed and Ten Year Will Trade Above Two Percent in 2016
Friday, September 9th, 2016
Via Bloomberg:
ECB's Draghi Refrains From Adding Stimulus for Now
ECB president says low rates not a reason for all problems
Carney said yesterday he expects last rate cut to be passed on
Europe’s most powerful central banker has a message for financial institutions: Stop complaining and play your part in the recovery.
“Low interest ...
Posted in Uncategorized | Comments Off on Central Bankers Nudge Banks
Thursday, September 8th, 2016
This Barron's article suggests that one of the reasons for the bond market debacle today was the announcement the Fed Governor Brainard would deliver a speech on Monday. Monday is the last day that FOMC members may speak before the blackout period which precedes the meeting. The suggestion is that ...
Posted in Uncategorized | Comments Off on Brainard Speech
Thursday, September 8th, 2016
The current recovery is more than seven years old and is getting long in the tooth. The WSJ has posted an interesting (to me ) article on the propensity of elections to fall around election times.
Via the WSJ:
By
Josh Zumbrun
Sep 8, 2016 10:07 am ET
By many key measures, the ...
Posted in Uncategorized | 3 Comments »
Thursday, September 8th, 2016
Via Marc Chandler at Brown Brothers Harriman:
Dollar Soft Ahead of ECB Decision
The ECB meeting is the highlight for today
During the North American session, the US reports weekly jobless claims and July consumer credit
Japan reported final Q2 GDP data overnight; China and Australia reported trade data
Mexico ...
Posted in Uncategorized | Comments Off on FX