Archive for October, 2016

Some Corporate Bond Stuff

Thursday, October 13th, 2016

Via Bloomberg: IG CREDIT: PSX 30Y, 10Y Led Trading Volume 2016-10-13 09:56:10.959 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $16.7b vs $15.4b Tuesday, $18.7b the previous Wednesday. 10-DMA $15.9b. * 144a trading added $3.2b of IG volume vs $2.7b Tuesday, $3.2b last Wednesday * Trace most active issues: * PSX 4.90% 2046 ...

Replacing Humans

Thursday, October 13th, 2016

Via Bloomberg: This Bank-Beating Trading Powerhouse Doesn’t Use Human Traders John Detrixhe johndetrixhe October 13, 2016 — 12:00 AM EDT One of the world’s fastest-growing trading shops doesn’t have any traders. XTX Markets Ltd. has emerged as a foreign-exchange powerhouse, relying on programmers and mathematicians to fuel its rise into the global top five earlier this ...

Helicopter Money Might Be Saved

Thursday, October 13th, 2016

Via Bloomberg: Catherine Bosley cbSwiss October 13, 2016 — 5:17 AM EDT Helicopter money — the direct transfer of cash from central banks to consumers — has been touted as a radical form of stimulus to boost moribund inflation. A study by ING suggests it may not have much of an impact. If people were ...

Credit Pipeline

Thursday, October 13th, 2016

Via Bob Elson at Bloomberg: IG CREDIT PIPELINE: SWED, EIBKOR to Price; Mandates Added 2016-10-13 09:33:42.422 GMT By Robert Elson (Bloomberg) -- Expected to price today: * Kingdom of Sweden (SWED) Aaa/AAA, to price $benchmark 144a/Reg-S 3Y, via managers Barc/GS/HSBC/SEB; guidance MS +7 area * Export-Import Bank of Korea (EIBKOR) Aa2/AA, to price $benchmark 4-part deal, via ANZ/BAML/CA/Miz/MS/Samsung/SG/UBS * 3Y, guidance ...

FX

Thursday, October 13th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h1183c17c,189a5d18,189a5d19&p1=136122&p2=c8389796cf291b9cbde7cf0299ef5c6a> The FOMC Minutes reflected the fact that the decision to leave rates on hold in September was a ‘close call' but, not for the first time, the decision to wait prevailed. A tightening labour market is the main argument for raising rates and although a recovery ...

HSBC looks For Sharp Drop in US Stocks

Wednesday, October 12th, 2016

Via Bloomberg: Julie Verhage julieverhage Andrew Cinko October 12, 2016 — 11:05 AM EDT Yesterday's big stocks drop may have just been the beginning.   Or so says HSBC Holdings Plc technical analyst Murray Gunn. In a new note, Gunn says he is now on alert for a big dip in U.S. equities. "With the U.S. stock ...

Dim Future For Banking

Wednesday, October 12th, 2016

Greg Ip at the WSJ writes an excellent piece on the dim prospects for banks: By Greg Ip Updated Oct. 12, 2016 6:21 p.m. ET Seven years since the global financial crisis, banks don’t look like a source of trouble. They’re making money and have thickened their buffers against bad loans, while extensive ...

Five Year Repo

Wednesday, October 12th, 2016

Via my former colleague Steve Liddy: Current 5s trading -1.30 to 10/31 -0.45 to 11/15 -0.35 to 11/30 Seems rich for current 5s, to be trading that negative out to mid/late November. There was a large TY/WN steepener (exit flattener?) that went through this morning, and market was able to hang in there (I see ...

More FOMC Analysis

Wednesday, October 12th, 2016

Via TDSecurities: TD: FOMC Minutes: Plenty of discussion, but 2016 rate hike remains likely ·         September FOMC minute should not materially change the calculus for a 2016 rate hike. ·         The minutes reveal a lively discussion about the improving labor force participation rate and a low r-star world. ·         We continue to ...

FOMC Minutes Analysis

Wednesday, October 12th, 2016

Via Stephen Stanley at Amherst Pierpont Securities: We have gotten about as much Fed transparency as we can take over the last six weeks or so, as hawks and doves have been making their respective cases in a very public way.  Most of these arguments were rehashed at the September 20-21 ...