Archive for October, 2016

Goldman Sachs on Appreciating Dollar and the FOMC

Monday, October 31st, 2016

Via Bloomberg: October 30, 2016 — 8:20 PM EDT Updated on October 31, 2016 — 2:36 AM EDT Trade-weighted dollar is at the strongest level since March U.S. financial conditions gauge has been negative since July The dollar’s climb to a seven-month high has Goldman Sachs Asset Management concerned further appreciation ...

FX

Monday, October 31st, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead In the US, there are three drivers: politics, FOMC meeting, and the employment report The eurozone reports the three most important macroeconomic data points:  GDP, inflation, and unemployment Of the four central banks that meet, the Bank of England ...

Betting on Higher Vol

Monday, October 31st, 2016

Via WSJ: By Asjylyn Loder Oct. 30, 2016 7:00 a.m. ET   Wall Street’s bet against fear, a big winner this year, is starting to wane. The relative calm in the U.S. stock market has made wagering on a decline in the CBOE Volatility Index, or VIX, a popular trade for much of this ...

No Production Accord at OPEC

Monday, October 31st, 2016

Via Bloomberg: OPEC Sees More Cut Exemption Requests The growing list of OPEC members seeking exemptions from a planned supply cut has investors seeing future price drops. Money managers increased bets on lower West Texas Intermediate oil for the first time in five weeks as Iraq joined Iran, Nigeria and Libya in seeking to ...

Some Early Corporate Bond Stuff

Monday, October 31st, 2016

Via Bloomberg: IG CREDIT: Volume Drops 30% as Spreads Leak Wider 2016-10-31 09:43:09.330 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $14.3b Friday vs $20.3b Thursday, the highest volume since July, $12b the previous Friday. 10-DMA $16.5b; 10-Friday moving avg $12.1b. * 144a trading added $1.7b of IG volume Friday vs ...

Early FX

Monday, October 31st, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h11a64bfd,18d1d930,18d1d931&p1=136122&p2=c7c826f52e5e15483e6c287f65680e0a> With a little over a week to go until the US Presidential Election, it's no surprise that politics is set to play an even bigger role in markets in the coming days. This morning, rather than creating the sort of Halloween 'fright night' that would suit ...

Credit Pipeline

Monday, October 31st, 2016

Via Bloomberg: IG CREDIT PIPELINE: Dealers Expect at Least $20b of IG Deals 2016-10-31 09:15:33.43 GMT By Robert Elson (Bloomberg) -- 80% of dealers, in a Bloomberg survey, look for at least $20b of new IG issuance this week. 39% think it will be over $25b; 18% over $30b. LATEST UPDATES: * Dow Chemical (DOW) Baa2/BBB, filed debt ...

Stops Are For Buses

Sunday, October 30th, 2016

Via WSJ: By Chelsey Dulaney Updated Oct. 27, 2016 7:49 p.m. ET   Some currency investors, worried that events such as the pound’s recent collapse could become more common, are abandoning an automated trading mechanism that was supposed to protect them from losses after big market swings. The trading mechanism, known as a ...

Just a Slight Whiff of Inflation Wafting Through the Macroeconomic Breeze

Sunday, October 30th, 2016

Via Greg Ip at WSJ: By Greg Ip Updated Oct. 30, 2016 5:04 p.m. ET   After being given up for dead, inflation is gradually coming back to life. It’s not roaring back. Indeed, it’s still below the 2% level the Federal Reserve targets, one reason the Fed is almost certain to leave ...

Some Corporate Bond Stuff

Thursday, October 27th, 2016

Via Bloomberg: IG CREDIT: Client Buying of Long Bonds Lead High Volume Session 2016-10-27 10:12:19.770 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $18.9b vs $19.5b Tuesday, $18.1b last Wednesday. * Highest of any Wednesday since $19.6b on July 20 * 15th highest of any Wednesday since Nov. 2005, more ...