Miscellany

February 28th, 2008 9:33 am | by John Jansen |

Corporate bond spreads are trading wider by 5 basis points to 10 basis points wider as the mini euphoria in evidence yesterday has evaporated. Bank and finance paper has taken the biggest hit.Citibank brought a mega sized 30 year deal at T+230 basis points and the bid today is +240 basis points. One former customer just made the salient point that they recently sold a vast chunk of equity to some SWF and others at 14 percent so why would any one want 30 year paper at 6 percent.

TIP bond breakevens continue to widen and currently sit at 250 basis points in the 10year sector.

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