Archive for October, 2016

Credit Pipeline

Monday, October 17th, 2016

Via Bloomberg: IG CREDIT PIPELINE: 3 Yankees to Price, Domestics Expected 2016-10-17 09:50:10.486 GMT By Robert Elson (Bloomberg) -- Expected to price today: * Industrial & Commercial Bank of China (ICBCAS) A1/A, to price 2-part deal, via managers BNP/BAML/C/WFS * 5Y, IPT +150 area * 10Y, IPT +170 area * Korea National Oil (KOROIL) Aa2/AA, to price 2-part 144a/Reg-S deal, ...

More FX

Monday, October 17th, 2016

Via Marc Chandler at Brown Brothers Harriman: Four Key Events in the Week Ahead ECB meeting Bank of Canada meeting UK High Court ruling on role of Parliament in Brexit DBRS Reviews Portugal credit rating The US dollar is narrowly mixed.  The Australian dollar is competing with sterling for the heaviest ...

Early FX

Monday, October 17th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h1188ae10,18a21a46,18a21a47&p1=136122&p2=3ac2afd229b864222aa934befde45602> Link to last night's piece again. Not a lot has changed. Sterling's no lower than it was when I went to bed, Brent unch'd at $51.90, 10yr Notes steady at 1.79. Japan IP was revised down to +1.3 m/m, UK Rightmove house prices +4.2% y/y. Asian ...

Hilsenrath Article

Monday, October 17th, 2016

WSJ scribe Hilsenrath interviews recent dissenter Rosengren who favors a steady course in November and a rate hike in December. Via Jon Hilsenrath of the WSJ: Rosengren Signals Willingness to Keep Rates Steady in November By Jon Hilsenrath Updated Oct. 17, 2016 12:03 a.m. ET 0 COMMENTS BOSTON— Eric Rosengren, president of the ...

Predatory Trading in Treasury Market

Sunday, October 16th, 2016

A new electronic platform will allow dealers to blacklist counterparties they deem predatory. Via Bloomberg and quite interesting (at least to me): One Man’s Crusade to Tame Most Dangerous Predators in Treasuries Eliza Ronalds-Hannon ElizaHannon October 16, 2016 — 7:00 PM EDT Ex-BrokerTec CEO starts new platform to combat abusive HFTs Critics blame ‘phantom liquidity’ for drop ...

Easy Money on Steroids

Sunday, October 16th, 2016

Via Bloomberg: Big Central Bank Assets Jump Fastest in 5 Years to $21 Trillion Phil Kuntz October 16, 2016 — 7:00 PM EDT Up 10% this year to almost a third the size of world economy Trajectory coincides with the rise in global stocks and bonds   The world’s biggest central banks are bulking up their balance ...

ObamaCare (Res Ipsa Loquitur)

Sunday, October 16th, 2016

Via Bloomberg: More Than 1 Million to Lose Obamacare Plans as Insurers Quit Zachary Tracer ZTracer Tatiana Darie tatianadariee Katherine Doherty October 14, 2016 — 5:00 AM EDT Updated on October 14, 2016 — 4:34 PM EDT Insurers quitting is latest threat to health law’s markets Health law has become major focus of Trump, Clinton election   A growing number of people ...

October 14 2014 Flash Crash and Treasury Market Liquidity (or lack Thereof) Revisited

Sunday, October 16th, 2016

Via Bloomberg: Once-in-4,800-Year Shock Is Bond Market’s Cold Case Two Years On Rebecca Spalding @rcurtisspalding Eliza Ronalds-Hannon ElizaHannon October 13, 2016 — 7:45 PM EDT Updated on October 14, 2016 — 11:00 AM EDT Regulators say market safer now than before 2014 flash rally Analysts say next sudden swing could be even more extreme Two years since a burst of ...

Sunday Evening FX Musings

Sunday, October 16th, 2016

Via Kit Juckes at SocGen: Two Sunday evening links. One from Michala on the economics of bond yields and one from me on why the Euro looks vulnerable this week. <http://www.sgmarkets.com/r/?id=h1188ae10,18a21a46,18a21a47&p1=136122&p2=3ac2afd229b864222aa934befde45602> Euro and T-Note positions - room to break EUR/USD lower For once, the most interesting data in this week's CFTC (FX) position report ...

Rising Deficit and Rising Spending

Saturday, October 15th, 2016

Via Bloomberg: Saleha Mohsin SalehaMohsin October 14, 2016 — 4:00 PM EDT Updated on October 14, 2016 — 4:36 PM EDT Receipts rise 1%, outlays increase 5% in year, Treasury says Deficit as a share of GDP near 40-year average: Treasury   The U.S. budget deficit as a share of the economy widened for the first time in ...