It’s An Upside Down World…Or So Much For “Decoupling”
Italy has “successful” bond auction and for all intents and purposes, JPM misses earnings. Stocks failed to respond to a “successful” Italian bond auction. The market isn’t giving them much credit for placing bonds that mostly mature in the timeframe covered by LTRO. The auction results are good, but the market is taking a wait […]
Daily Credit ETF and Index Summary (12.01.12) – Fund Flows Continue To Be Strong
HYG and JNK have now attracted more than $1.3 billion yet are both struggling to show gains. The premium has dropped as the prices have dropped while NAV has crept up. Given the flows, and the general view that High Yield Corporate Bonds offer good value, I’m surprised we haven’t seen a spike higher in […]
ECB, Expect Nothing And You Won’t Be Disappointed
Auctions This morning’s auctions appear to be nothing short of spectacular. Low rates, big size, follow through at the long end of the curves Italian 10 year yields are 40 better on the day and almost 60 better on 2 days as the yield is back to 6.56%. SOVX is 10 tighter (though it is […]
Daily Credit ETF and Index Summary (12.01.11) – A Focus On HYG/JNK NAV
The flows into HYG and JNK have now topped $1.1 billion for the year. HYG is dominating the flows by more than 2:1. Personally I have liked the rigor of HYG in terms of how they attempt to track the index better than JNK. This is in spite of very mediocre performance year to date, though […]
(BN) *MERKEL SAYS ECB TO HELP ADVISE EFSF AFTER LEVERAGING DIFFICULTY
Maybe they could hire an advisor who has actually done structured credit? This single line does explain a lot including the fact that the termsheets they sent out looked like the scribblings of a failed MBA student. They really were just making it up as they went along. It also helps explain the confusion coming […]
Disappearing Ink
As Europe limps from poorly planned idea to poorly planned idea, they have now resorted to looking at the back of comic books for solutions. They haven’t yet figured out how to use Sea Monkeys, but the Greeks have latched on to the possibilities of disappearing ink, or in this case, appearing ink. There is […]
Daily Credit ETF and Index Summary (12.01.10)
HYG and JNK have now attracted almost $1 billion in new money this year. An incredibly strong start to the year in terms of flow, yet the performance has been very weak. HYG is down for the year and JNK is virtually unchanged. That is largely due to the fact that they started the year […]
A Couple Of Questions To Start The Day….
On Sunday we had Occupy MetLife Stadium where the 99% happily watched the 1% on the field and in the stands. Last night we had a decent college football championship and are sure to see several of the players play on Sunday, which leads to the first question. What is higher, the percentage of NFL […]
Spirale Di Morte?
UniCredit shares are getting crushed today on the back of their rights offering. Mediobanca shares are also down. Mediobanca is the largest shareholder of Unicredit (as we sent out last week). Mediobanca has underwritten 10% of the rights offering. When will Mediobanca need to do its own rights offering? Will their biggest shareholder (UniCredit) underwrite […]
Daily Credit ETF and Index Summary (12.01.09)
European indices, MAIN, SNR (fins), and SOVX are all right around flat to a touch wider. HYG and JNK attracted close to $750 million of new money last week. That many new shares were created, yet the funds were down on the week. The premium has shrunk for the indices. At these levels, they are […]
