ECB: 8 March 2012 – Eligibility Of Bonds Issued Or Guarantee
ECB: 8 March 2012 – Eligibility of bonds issued or guaranteed by the greek government in Eurosystem credit operations Ok, I read the English press release and am left wishing they had it in Italian or something because it would make as much sense. All I can guess is this is a way around […]
Main And IG17 Not Doing As Well As Equities…
Main was 4 tighter at one point but is only 1 3/4 tighter now. IG17 is only 1 tighter – which seems light given where futures are. HY17 is doing better, the slippage in these indices may be a sign that stocks are over enthusiastic again. I think we will see lower levels than now […]
Manic Depressive Markets Are Back
What a difference 24 hours makes, or 48 for that matter. After an almost 2% decline on Tuesday on virtually no news, the market looks set to get all that back and more – all since about 10:30 yesterday – also on no real news. PSI results continue to come in. It looks like it […]
Ultimate Carry Trades – AIG, MF Global, And LTRO
We know how AIG and MF ended, as of yet we don’t know how LTRO will end. AIG was the ultimate carry trade. They sold massive amounts of CDS for a very small spread. They had no funding cost, no collateral requirements (initially), and no mark to market risk for their own P&L. The year […]
Markets Rallying On QE And PSI
Looks like straight QE may be off the table, but the Fed is working on other ways to pump money into longer dated bonds and mortgages. For now market is positive. This is weak compared to real QE though purchases of mortgages would be more interesting as tries to more directly to help the housing […]
Watch HYG And Spanish Bonds
After an aggressive beating yesterday, HYG looked ready for a dead cat bounce at the very least. It popped on the open but is grinding back towards unchanged. To the extent that retail is done chasing yield for now, that is worrisome. To the extent it is institutions playing in HYG it is a sign […]
LTRO – Scratching The Surface
Now that the hype of LTRO is over (for now) people are starting to focus on the details and some of the potential consequences. This is a first cut based on bits and pieces from various LTRO documents released by the ECB. I haven’t seen anything that resembles a document fully describing the current LTRO’s, […]
HY ETF’s And NFP
The HY ETF’s took a pounding today, both HYG and JNK were down over 1% on high volume. The overall bond market seemed to hang in better, but we are still in that phase where people are reluctant to hit the bid as it gets lowered each time you check for a price. HY17 outperformed […]
A Couple More Quick Thoughts On “Not Paying” PSI Holdouts
If Greece decides not to pay the holdouts that is fine for anyone with basis package on (which I think is the bulk of the $3.25 billion of net CDS still outstanding). In fact a hard default is probably better for those basis package holders. If Greece uses the CAC clause and gives everyone new […]
(BN) Greece Plans to Make PSI Binding With No Cash for Holdouts
This article is a bit confusing to me. They will either CAC all holdouts or default on holdouts as payments become due and payable. This makes it sound like they will CAC holdouts to zero. I do not believe that is possible, even under their new laws. Collective Action should only allow Greece to force holdouts […]
