Why Can’t Rating Actions Be Scheduled?
I’ve asked this before, but I will ask it again, why can’t Rating Actions be scheduled like any other important piece of economic data. Make rating action announcements come out at 11 am NY time for example. The the agencies are taking any action, they can release it at 11 am, if they don’t have […]
What Downgrades Are “Priced” In?
Rumors of European downgrades are out there again today, and it feels pretty real. Multiple sources, no angry French finance ministry employee denying them, so we will see what, if anything is priced in. I’m hearing from a lot of people that a 1-notch downgrade is “priced” in. I’m not sure that is true. So […]
Daily Credit ETF and Index Summary (12.01.13) – Mixed Signals
Before the downgrade rumors surfaced, Europe was tighter this morning, though off the best levels. Main was outperforming. The US CDX Indices which performed well yesterday were all a bit weaker this morning – seems like credit traders also had on the “decoupling” trade and are finding that it may be wrong and crowded. I […]
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 […]