Archive for October, 2016

Avoiding a Communications Breakdown

Tuesday, October 25th, 2016

Via Bloomberg: Chicago Fed chief projects three rate hikes before end of 2017 Fed needs to be more clear about terms of moves, he says When the Federal Reserve next raises interest rates it should be more explicit about how policy makers will respond to new information about the economy going ...

Credit Pipeline

Tuesday, October 25th, 2016

Via Bloomberg; IG CREDIT PIPELINE: GS, CBA to Price; LUKOIL Mandate Added 2016-10-25 09:39:13.911 GMT By Robert Elson (Bloomberg) -- Expected to price today: * Commonwealth Bank of Australia (CBAAU) Aa2/AA-, to price $benchmark 144a/Reg-S 2-part deal, via managers CBA/HSBC/JPM * 3Y, IPT +90-95 * 3Y FRN, IPT equiv * Goldman Sachs Group (GS) A3/BBB+, to price $benchmark 11/NC10 FRN; ...

Some Corporate Bond Stuff

Tuesday, October 25th, 2016

Via Bloomberg; IG CREDIT: Volume Improves; Most Active Issues See Mixed Flows 2016-10-25 09:58:51.526 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $14b vs $12b Friday, $13.9b last Monday. 10-DMA $15.3b; 10-Monday moving avg $13b. * 144a trading added $1.8b of IG volume vs $1.6b Friday, $2b last Monday * Trace most ...

FX

Tuesday, October 25th, 2016

Via Marc Chandler at Brown Brothers Harriman: Dollar Goes Nowhere Quickly The driving force is the rising US rates and increased expectations that the Fed will hike rates in December The German IFO business climate is at its highest level in 2.5 years The Richmond Fed index, S&P CoreLogic (formerly ...

Aging Baby Boomer Alert

Tuesday, October 25th, 2016

Via Yahoo News: Some great trivia in this one. 1960s Pop Singer Bobby Vee Has Died at Age 73   MINNEAPOLIS (AP) — Pop idol Bobby Vee, the boyish, grinning 1960s singer whose career was born when he took a Midwestern stage as a teenager to fill in after the 1959 ...

President Clinton’s First 100 Days

Tuesday, October 25th, 2016

Via Bloomberg: October 25, 2016 — 5:00 AM EDT Don't Miss Out — Follow Bloomberg Politics Her plans, little discussed, would ripple across the economy Election has become referendum on Republican Donald Trump Hillary Clinton’s brightening White House prospects have cleared a path for her to pursue a $275 billion infrastructure plan that ...

Mergers and Acquisitions and Credit Ratings

Tuesday, October 25th, 2016

This is an excellent article from Bloomberg on the M and A binge and reviews by ratings agencies which are reminiscent of the lax standards applied prior to credit crisis. Via Bloomberg: Michelle Davis MichelleF_Davis October 25, 2016 — 5:00 AM EDT Sh AT&T’s bid to buy Time Warner just ...

More Gridlock

Tuesday, October 25th, 2016

Via WSJ: By Gerald F. Seib Updated Oct. 24, 2016 11:27 p.m. ET   Here’s a small fact from the presidential campaign front: The numbers crunchers at the Tax Foundation estimate that there is roughly a $6 trillion difference in the amount of federal revenue that would be generated over the next ...

Will FOMC Clearly Signal December Hike?

Tuesday, October 25th, 2016

Via WSJ: By Kate Davidson and Jon Hilsenrath Updated Oct. 24, 2016 7:23 p.m. ET 8 COMMENTS Federal Reserve officials, wary of raising short-term interest rates amid the uncertainty surrounding the U.S. presidential election, are likely to stand pat at their November policy meeting and remain focused on lifting them in December. Their ...

FX

Monday, October 24th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead Fitch surprised by cutting Italy's credit outlook Friday to negative from stable The eurozone flash PMI improved, which is consistent with the continued trend growth in the area Canada walked out on the free-trade talks with the EU ...