wndysrf Posted September 7, 2006 Report Share Posted September 7, 2006 The thirst for fixed income paper of all race, color, stripes, ethnic origin, etc. continues, without regard to risk. Not only are mortgage-backeds and Emerging Market Exotica bonds sought after, but blue chip companies are issuing new bonds in droves because of the relentless demand that refuses to slacken. Excerpts from today's WSJ: Investment-Grade Market Booms With Deal Supply Strong, Swap Spreads Tighten; Foreign Issuers Are Key By EMILY BARRETT and MARINE COLE More deals keep flooding the investment-grade corporate market, deepening the mark left on other fixed-income markets, especially that of interest-rate swaps. "We're off to a blistering pace" for September, said Scott MacDonald, co-head of research at Aladdin Capital, a Stamford, Conn., hedge fund that manages about $10 billion in assets. More than $4 billion of new investment-grade bonds was sold Tuesday and about $10 billion more priced yesterday. That has already put total supply within the $10 billion to $15 billion range that some market participants had anticipated for the entire week. Financial-services companies and banks continue to make up the bulk of new supply. Capital One Financial Corp. sold a $2.2 billion two-part offering late Tuesday night. Financial issuers in the market yesterday included BB&T Corp., Citigroup Inc., Bank of America Corp. and National Australia Bank Ltd. Such heavy supply typically narrows risk premiums of interest-rate swaps over Treasurys, as the issuers, especially financial institutions, tend to swap the fixed-rate debt for a floating-rate liability. "Pipeline issuance is keeping pressure on spreads to come in," says Mike Pond, Treasury and inflation-linked strategist at Barclays Capital. After Tuesday's session, swap spreads tightened as much as 0.02 percentage point in the 10-year sector -- the most active one. Inter-American Development Bank sold $1 billion of 10-year bonds at 0.35 percentage point over Treasurys yesterday morning. BB&T's offering also contained 10-year notes. "It's a sweet spot," Mr. MacDonald said. "It fits everybody's portfolio." Even nonfinancial issuers such as Walt Disney Co. and CRH American Inc. were in the market to sell 10-year notes in split deals yesterday. While Mr. MacDonald anticipates new issuance for September to be around $40 billion, other market participants expect as much as $80 billion. RBS Greenwich Capital anal cyst Fidelio Tata noted that September could "could run as high as two times the monthly average," which was $35 billion a month in 2005 and $45 billion a month in 2004. Link to comment Share on other sites More sharing options...
DrStool Posted September 7, 2006 Report Share Posted September 7, 2006 Pooper Scooper Squeeze one out for Capitalstool. Support the Stool! Link to comment Share on other sites More sharing options...
shorty Posted September 7, 2006 Report Share Posted September 7, 2006 If house prices continue falling, aSSessments eventually have to follow. But ``the taxes will always go up," said Richard D. Simmons Jr., the aSSessor for Belmont Under state law, city officials determine the size of the budget and aSSessors are free to increase the property tax rate to CONpensate for falling aSSessments. Link to comment Share on other sites More sharing options...
Bungster Posted September 7, 2006 Report Share Posted September 7, 2006 I found this gem over on Billcara.com http://www.billcara.com/archives/2006/09/b...t_ral.html#more ?A curious development is that while nearly 80% of components are above their 50-day averages, less than 40% are above their 200-day. This is an unusually wide spread - over the past decade, only three times have we seen a similar thing - those being early May 2001, mid-August 2002 and late October 2002. All of those, of course, were classic bear-market rallies. Hmmm...? Oh, so this rally has been a bear market rally... that makes sense since the Nadsaq retraced 50% of the down move from May.....hmm.... Bung Link to comment Share on other sites More sharing options...
astral mike Posted September 7, 2006 Report Share Posted September 7, 2006 anyone been following JOYG these last few days. quite a joy ride!! Link to comment Share on other sites More sharing options...
beardrech Posted September 7, 2006 Report Share Posted September 7, 2006 I found this gem over on Billcara.com http://www.billcara.com/archives/2006/09/b...t_ral.html#more ?A curious development is that while nearly 80% of components are above their 50-day averages, less than 40% are above their 200-day. This is an unusually wide spread - over the past decade, only three times have we seen a similar thing - those being early May 2001, mid-August 2002 and late October 2002. All of those, of course, were classic bear-market rallies. Hmmm...? Oh, so this rally has been a bear market rally... that makes sense since the Nadsaq retraced 50% of the down move from May.....hmm.... Bung <{POST_SNAPBACK}> Bungster After reading something, sometime ago, Its in my humble amateurish opinion, a very important tell--Yes, yes, yes, its the precursory sign of the turn and return to the basement from whence it came--if I remeber correctly this is the bond move upward towards risk free tbill % return that signals the markets decline and fall beardrech Why BD You are an absolute !@@@#%&&*()xxx@#$%(%%_)(*&&&^% ----Now really; Just exactly what did u mean by that?? Link to comment Share on other sites More sharing options...
Captain's Log Posted September 7, 2006 Report Share Posted September 7, 2006 My SOLM position is like Paris Hilton's knickers : up and down all day. Speaking of which, wonder which way this wedgie break is going to be ? Link to comment Share on other sites More sharing options...
wndysrf Posted September 7, 2006 Author Report Share Posted September 7, 2006 Still long CBJ, DROOY, MDG, EGO, AUY, SLW Got shanked out of everything else for a minor loss on some, small gain on others. Still short TRE, and went short NEM today as a hedge. KBX closed green today. Might pick some up tomorrow. No more longs until we are down at least 4 days in a row. No more shorts until the put/call backs down to under .75 for 3 consecutive days. Link to comment Share on other sites More sharing options...
The End Posted September 7, 2006 Report Share Posted September 7, 2006 First review of the first concert of the USA leg of Roger Waters' tour. http://www.pinkfloydz.com/roger2006/index6sep.htm Link to comment Share on other sites More sharing options...
The End Posted September 7, 2006 Report Share Posted September 7, 2006 Chart. Link to comment Share on other sites More sharing options...
DrStool Posted September 7, 2006 Report Share Posted September 7, 2006 Many tanks to the stoolie who just sent that generous contribution! You know who you are! And for anyone else among the thousands of you who visit here daily, just press the button and send a small toke of your appreciation once a month, once a quarter, or once a year! Pooper Scooper Squeeze one out for Capitalstool. Support the Stool! Link to comment Share on other sites More sharing options...
Bungster Posted September 7, 2006 Report Share Posted September 7, 2006 I found this gem over on Billcara.com http://www.billcara.com/archives/2006/09/b...t_ral.html#more ?A curious development is that while nearly 80% of components are above their 50-day averages, less than 40% are above their 200-day. This is an unusually wide spread - over the past decade, only three times have we seen a similar thing - those being early May 2001, mid-August 2002 and late October 2002. All of those, of course, were classic bear-market rallies. Hmmm...? Oh, so this rally has been a bear market rally... that makes sense since the Nadsaq retraced 50% of the down move from May.....hmm.... Bung? <{POST_SNAPBACK}> Bungster After reading something, sometime ago, Its in my humble amateurish opinion, a very important tell--Yes, yes, yes, its the precursory sign of the turn and return to the basement from whence it came--if I remeber correctly this is the bond move upward towards risk free tbill % return that signals the markets decline and fall beardrech Why BD You are an absolute !@@@#%&&*()xxx@#$%(%%_)(*&&&^% ----Now really; Just exactly what did u mean by that?? <{POST_SNAPBACK}> You got a chart you want to share big guy? Bung Link to comment Share on other sites More sharing options...
wndysrf Posted September 7, 2006 Author Report Share Posted September 7, 2006 Looks like there is lots of demand for beef jerky..... New highs on Dean Foods Link to comment Share on other sites More sharing options...
wndysrf Posted September 7, 2006 Author Report Share Posted September 7, 2006 How about some drug stores?? I suppose all the bucket shop daytraders trying to make $5,000/mo. are making frequent visits for Kaopectate and Vicodin. Link to comment Share on other sites More sharing options...
Tzu Posted September 7, 2006 Report Share Posted September 7, 2006 BTU busted 40 today. If it doesn't uturn here it looks headed to 52 week lows. 330% volume. Thinking of some PMCS around 6. FCEL is getting cranked. 255% volume SIL down on 200% volume. May be a good hedger. DROOY turned around on nice volume. Something is up there. Volume is starting to come back in many stocks now finally. Hopefully things will tank down and fill some gaps. Seems it will.... QQQQ 125% volume. Who cares which way it goes as long as it moves. Sure is dead around here. Link to comment Share on other sites More sharing options...
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