Thursday, May 14, 2009

Corporates: All craft retreat!

Corporate spreads weak again today. Heard that J.P. Morgan's new 5-year was 20bps wider than issue, American Express 10ish weaker on the break, InBev weaker again. The new Simon Property is 25 weaker today.

On the positive side, it sounds like the new Wal*Mart bonds did OK, came at 130, now 10ish tighter.

Worth noting, from a macro perspective, new issue buyers are a fickle bunch. If they have bad experiences with one sector or name, the tend to stay away in the future. So its important that these new financial issues perform well or it may become difficult for future issuers. So far, even though AXP and JPM didn't do that great, a lot of the other issues are still mildly tighter (BAC, GECC), but its worth watching.

Weakness in the credit market makes you scratch your head at how well stocks are doing today. Smells like options expiry BS to me. I covered part of my S&P 500 short yesterday, added a short of JNK. Might add back to my S&P short if we rise any more. I like 875 as a target.


In Debt We Trust said...

Something of interest to you and other readers:

Aaron said...

Bah! Mentions of equities...

Enough of this crap. Let's get back to speculation on the LCDX.

PNL4LYFE said...

Does anyone know of a website that posts closes for CDX HY, LCDX etc? I know Markit has then, but it looks like you have to subscribe there.

Unknown said...

PNL4LYFE, Merrill's site has a ton of exotic indexes. Registration is free.

In Debt We Trust said...


How can you say that? The stock mkt is important to mention here b/c of the inverse bond relationship.

Even though I think we are in a long term bond bear market (for fiscal reasons that have been pounded here on this web site forever), there is still a lot of fear among traders. This means there are plenty of short-medium term scalping opportunities for bonds in the next few weeks.

Accrued Interest said...


Some of that stuff is on Bloomberg. Not all of it though.