Archive for November, 2016

Some Corporate Bond Stuff

Monday, November 14th, 2016

Via Bloomberg: IG CREDIT: Volume Remains High; Yields Move Higher Still 2016-11-14 10:48:14.729 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $19.8b, the 7th highest Thursday session since 2005, vs $20.2b Wednesday, $15.9b the previous Thursday. * Trading volume was 18th highest since Nov. 2005, more than on 99.3% of trading ...

Credit Pipeline

Monday, November 14th, 2016

Via Bloomberg: IG CREDIT PIPELINE: Heavy Issuance Expected, May Include M&A 2016-11-14 10:26:08.390 GMT By Robert Elson (Bloomberg) -- A Bloomberg survey of dealers and clients had 75% expecting more than $20b of IG issuance this week. 57% thought over $25b; an unusually large 35% looked for over $30b with some saying $40b was possible. Presumably with ...

6 % 10 Year?

Monday, November 14th, 2016

Via Barron's: You heard it here first: Jeffrey Gundlach, CEO of DoubleLine Capital and one of the world’s most successful bond investors, predicted in January at the Barron’s Roundtable that Donald J. Trump would be the country’s next president, noting, “The populist momentum is unstoppable.” Now that the New York businessman has ...

Trump and Mortgage Market

Monday, November 14th, 2016

Via WSJ: By AnnaMaria Andriotis Updated Nov. 13, 2016 11:32 p.m. ET   The remaking of U.S. politics also is likely to upend the nation’s mortgage market. There are two reasons why: interest rates and regulation. Changes in these areas could affect the course of the housing recovery, the availability of credit to ...

Goldman Sachs Sees Trump Policies Bringing Return of Stagflation

Monday, November 14th, 2016

Via Bloomberg: Short-term gain for long-term pain? That's the view of economists at Goldman Sachs Group Inc., who argue that while some of President-elect Donald Trump's proposals could boost U.S. economic growth in the near future, his other policies would offset those positive impacts over the long-run. Trump's surprise victory in the presidential elections ...

More on Bond Rout

Monday, November 14th, 2016

Via WSJ: By Christopher Whittall Nov. 14, 2016 4:12 a.m. ET   The wave of selling that has swept across government-bond markets since Donald Trump’s election last week resumed Monday as investors continued to weigh the prospects of increased fiscal stimulus and a quicker pace of interest-rate rises. The yield on the benchmark 10-year ...

Treasury Market Update

Monday, November 14th, 2016

The rout in the Treasury market continues overnight unabated. The Long Bond traded at 3 percent overnight and that level has not stopped the hemorrhage as we are a tad cheaper as I compose this electronic missive. The aforementioned Long Bond is the best performer on the curve in overnight ...

Japan GDP Tops Estimates

Sunday, November 13th, 2016

Via Bloomberg: November 13, 2016 — 7:00 PM EST Updated on November 13, 2016 — 7:55 PM EST Japan’s economy grew more than forecast in the three months through September, as a rebound in exports compensated for continued weak spending at home by people and companies. Key Points Gross domestic product ...

Low Interest Rates Wreak Havoc on Pension Funds

Sunday, November 13th, 2016

Via WSJ: By Timothy W. Martin, Georgi Kantchev and Kosaku Narioka Nov. 13, 2016 3:03 p.m. ET   Central bankers lowered interest rates to near zero or below to try to revive their gasping economies. In the process, though, they have put in jeopardy the pensions of more than 100 million government workers and ...

Yhe Long Equity Bull Market

Sunday, November 13th, 2016

Via Bloomberg: Why the 2,826-Day-Old Bull Market Could Be a Headache for Trump Joseph Ciolli JoeCiolli November 13, 2016 — 4:51 PM EST An early bear market may be best for an incoming president Bull market in the S&P 500 is the second-longest of all-time The election’s over, but for ...