Archive - May 2009

Carry traders have called it a day and are now all congregating at Flashdancers.

The green shoot police will have a field day beating the drum over how the 30 Year mortgage has massively tightened to the 10 Year.... by a whopping 0.04 bps.

The green shoot police will have a field day beating the drum over how the 30 Year mortgage has massively tightened to the 10 Year.... by a whopping 0.04 bps.

The green shoot police will have a field day beating the drum over how the 30 Year mortgage has massively tightened to the 10 Year.... by a whopping 0.04 bps.

In the most recent example of taking from one pocket to pay another, Merrill and JPM underwrote 8.75 million shares at $20/share for Kilroy Realty Corp, a REIT that owns, operates, develops, and acquires Class-A suburban office and industrial real estate in bankrupt southern California.

In the most recent example of taking from one pocket to pay another, Merrill and JPM underwrote 8.75 million shares at $20/share for Kilroy Realty Corp, a REIT that owns, operates, develops, and acquires Class-A suburban office and industrial real estate in bankrupt southern California.

In the most recent example of taking from one pocket to pay another, Merrill and JPM underwrote 8.75 million shares at $20/share for Kilroy Realty Corp, a REIT that owns, operates, develops, and acquires Class-A suburban office and industrial real estate in bankrupt southern California.

• Asian stocks edge higher after Japan industrial production posts biggest gain in 56 years.
• Dollar weakens as stock gains increase demand for higher yields.
• Fed officials believe the recent sharp rise in Treasury yields could reflect a mending economy.
• India’s economy expands 5.8 percent in the three months to March 31, led by government spending and construction.
• Japan's industrial output jumps at fastest rate in 56 years, but joblessness also rises.
• Oil dips below $65 in Asia after hitting 6-month high on improving US economy.
• Treasuries
  

• GDP dips at 5.7%, more than 5.5% consensus (AP)
• Good overview of black mortgage Wednesday (MND)
• Fiat will not attend Open talks (BBC)
• Tiffany's profit tumbles 62%, sales below consensus (Bl
  

Spreads were tighter in the US as all the indices improved (as IG saw its tightest close in Series 12). Indices generally outperformed intrinsics (as it seemed index flows were getting ahead of themselves into the close) with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL outperformed but widened the skew, ExHVOL outperformed pushing the skew wider, XO's skew increased as the index outperformed, and HY outperformed but narrowed the skew.

As recently many questions have arisen as to the involvement of the Federal Reserve in bond (and other) markets, I present the data provided by the Federal Reserve of New York regarding the Fed's Open Market Operations. The charts below summarize the individual (single-serving if you will) and cumulative purchases across both Treasuries and Agencies. In a nutshell, for 2009, the Fed has purchased $131 billion Treasuries and $63.8 billion Agencies.

As recently many questions have arisen as to the involvement of the Federal Reserve in bond (and other) markets, I present the data provided by the Federal Reserve of New York regarding the Fed's Open Market Operations. The charts below summarize the individual (single-serving if you will) and cumulative purchases across both Treasuries and Agencies. In a nutshell, for 2009, the Fed has purchased $131 billion Treasuries and $63.8 billion Agencies.

As recently many questions have arisen as to the involvement of the Federal Reserve in bond (and other) markets, I present the data provided by the Federal Reserve of New York regarding the Fed's Open Market Operations. The charts below summarize the individual (single-serving if you will) and cumulative purchases across both Treasuries and Agencies. In a nutshell, for 2009, the Fed has purchased $131 billion Treasuries and $63.8 billion Agencies.

For all with access to Bloomberg, run LTRA... For those who don't have bberg handy, here is the screen capture of Bloomberg's perfidious sense of humor.

Judging by the market, Bloomberg is actively developing its next critical "cointoss" function: [PPT] GO.

For all with access to Bloomberg, run LTRA... For those who don't have bberg handy, here is the screen capture of Bloomberg's perfidious sense of humor.

Judging by the market, Bloomberg is actively developing its next critical "cointoss" function: [PPT] GO.