Archive for October, 2016
Tuesday, October 11th, 2016
This excellent article by Liz McCormack at Bloomberg describes the changes to money market funds which will be implemented later this week. The reforms require greater transparency for riskier funds with the hope that a crisis such as that which occurred in 2009 following the Lehman bankruptcy can be averted. ...
Posted in Uncategorized | Comments Off on Money Market Reform
Tuesday, October 11th, 2016
Via Bloomberg:
Wes Goodman
richwesgoodman
October 10, 2016 — 9:44 PM EDT
Updated on October 11, 2016 — 2:05 AM EDT
Treasuries are world’s worst-performing government securities
U.S. bonds falls as Russia, Saudi Arabia agree to oil limits
Pacific Investment Management Co. says the Federal Reserve may raise interest rates two or three times by the end ...
Posted in Uncategorized | Comments Off on PIMCO Sees Multiple Rate Hikes in 2017
Monday, October 10th, 2016
I guess Bloomberg and WSJ are colluding on topics as this WSJ article visits the same territory as the previous post on currency market illiquidity via Bloomberg.
This WSJ article places the onus for the market's illiquidity on the post crisis regulatory storm.
Via the WSJ:
By Chelsey Dulaney and
Ira Iosebashvili
Updated Oct. 10, ...
Posted in Uncategorized | Comments Off on More on FX Liquidity or Lack Thereof
Monday, October 10th, 2016
Via Bloomberg:
BofA warns ‘phantom liquidity’ vanishing in times of stress
Sterling tumbled 6.1% in a matter of minutes on Oct. 7
The inexplicable volatility that roiled the British pound last week came as no surprise to Bank of America Corp., which just days earlier warned that liquidity in the $5.1 ...
Posted in Uncategorized | Comments Off on Illiquidity in FX Markets
Monday, October 10th, 2016
Via Bloomberg:
BFW 10/10 13:05 *SAUDI ARABIA TO START BOND INVESTOR MEETINGS FROM OCT. 12
BN 10/10 13:04 *SAUDI ARABIA MAY SELL 5-, 10- AND 30-YEAR MATURITIES BOND
BN 10/10 13:04 *SAUDI ARABIA MAY SELL SENIOR UNSECURED USD BENCHMARK BOND
BN 10/10 13:03 *SAUDI HIRES MORGAN STANLEY, MUFG, AND NCB CAPITAL
BN 10/10 13:03 *SAUDI ...
Posted in Uncategorized | Comments Off on Saudis Rattle Metaphoric Tin Cup
Monday, October 10th, 2016
Via Marc Chandler at Brown Brothers Harriman:
With major central banks on hold and mostly secondary economic reports due out, the main drivers will the backing up of interest rates, the performance of Germany's largest bank, US political developments and the OPEC meeting. US earnings seasons formally kicks off and ...
Posted in Uncategorized | Comments Off on FX
Friday, October 7th, 2016
Via Chris Low at FTN Financial:
Despite some headlines to the contrary, September’s jobs report does not support raising rates in December. If anything, it makes a good case against a hike. Of course, if the Fed is determined, they can always do it anyway, but there’s not much here to ...
Posted in Uncategorized | 1 Comment »
Friday, October 7th, 2016
Via TDSecurities:
US: September Jobs Report Meets the Fed's Standard
· Nonfarm payroll growth slowed to a 156k increase in September, missing consensus expectations for a stronger 172k print though at the heels of upward revisions to August. The unemployment rate unexpectedly rose a touch to 5.0% but reflected higher labor ...
Posted in Uncategorized | Comments Off on Labor Report
Friday, October 7th, 2016
This one is from Chris Low at FTN Financial. He argues that corporate bond issuance supports buybacks and has created an equity market bubble. He would not raiserates but would employ macroprudential policy to limit issuance (maybe via a tax on bond issuance). He also makes point that the raft ...
Posted in Uncategorized | Comments Off on Morning Musings
Friday, October 7th, 2016
Via Bloomberg:
IG CREDIT PIPELINE: Friday Issuance Has Been Seen Often YTD
2016-10-07 09:30:26.669 GMT
By Robert Elson
(Bloomberg) -- Friday sessions YTD have seen serious
issuance.
* Self-led Financials as C, JPM, MS, WFC, DB, RY have all done
Friday deals this year
* Non-financials have also done some Friday deals, including:
AT&T ($6b), PEP ($2.5b), NWL ($8b), ...
Posted in Uncategorized | Comments Off on Credit Pipeline