November 25th, 2008 1:13 pm | by John Jansen |

Goldman Sachs just priced their 3 ½ year $5billion FDIC guaranteed bond. The issue priced 200 basis points cheap to the 3 year Treasury. There is a lot of curve between November 2011 and June 2012. So a better comparison is the FNMA May 2012 issue and the spread there is about 10 basis points. The May 2012 issue trades Libor + 80 and this issue is Libor + 90.Agency spreads have screamed tighter this morning. Two year paper and three year paper is 20 basis points to 30 basis points tighter. Five year and ten year paper is 30 basis points to 40 basis points tighter.

There is very little liquidity and it is nearly impossible to find offerings. One trader suggested that the rally would continue for several days as there are many buyers and few sellers.

Swaps have gapped tighter also. Two year swap spreads have narrowed 13 ½ basis points to 93. Five year spreads have narrowed by 18 basis points to 81 ½. Ten year spreads are racing towards negativity, too, as the 13 ¼ basis points tightening there leaves them at 9 basis points. Thirty year spreads are narrower by 10 and are trading in the ether at NEGATIVE 44.

Mortgages are outperforming swaps by 7/32 but have surrendered the much larger gains achieved earlier when the outperformed swaps by 24/32.

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  1. 5 Responses to “Miscellany”

  2. By texalope on Nov 25, 2008 | Reply

    Hi John. I’m just wondering if you can see into the future. Your post is after 1pm and my watch says 12;46

    If so, that could be a very valuable talent.

  3. By mojakus on Nov 25, 2008 | Reply

    the GS deal is now bid +185

  4. By paul on Nov 25, 2008 | Reply

    where is a good place to find the price? i check on FINRA but looking for an easier way.

  5. By John Jansen on Nov 25, 2008 | Reply

    Tex: i guess the time never flipped when we moved the clock back. I will have to mention that to the head of the Across the Curve IT Department.


    I am not where you can find live corporate bond pricing for free. Practically,everything you read here is developed from conversations or emails I receive.


  6. By Clark Cotton on Jan 28, 2009 | Reply

    A new deal is coming soon from the minority-owned business channel. New issuers and more paper so contact me if you need FDIC info.

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