NEW YORK (Dow Jones)–U.S. investment-grade companies seized the opportunity to
sell debt Tuesday, including a $4 billion 30-year bond offering from General
Electric Capital Corp. that will not carry a government guarantee.
The bonds launched carrying a risk premium of 400 basis points over Treasurys,
which would give them a yield of approximately 7.07%.
On Monday, GECC, the financing arm [...]
NEW YORK (MarketWatch) — China’s central bank said Wednesday it is cutting key one-year interest rates. The People’s Bank of China said on its Web site that it was reducing the benchmark one-year deposit rate by 27 basis points to 3.60% from 3.87%. It also cut the one-year lending rate 27 basis points to 6.66% [...]
By Karl Denninger
If you’re playing “Buffett”, following his claim (note: there is no penalty for lying on national television about what you’re doing in your personal account) that he’s buying here, there is a little ugly fact you need to be aware of.
That fact is treasury issuance.
See, to fund all this bull excrement that [...]
SAN FRANCISCO (MarketWatch) — Investor fears of debt default among emerging
market nations surged Thursday after Standard & Poor’s lowered its outlook on
Russia’s debt to negative, reinforcing worries that U.S. financial shocks have
snowballed into a global financial crisis. J.P. Morgan Chase’s EMBI+ index, which
tracks total returns for emerging markets debt, jumped 59 basis points from
Wednesday’s close [...]
NEW YORK (Dow Jones)–After being severely constricted for weeks, the commercial
paper market showed tentative signs of recovery on Tuesday after global leaders
aimed a number of initiatives at stabilizing financial markets.
On Tuesday, the U.S. government said it would inject $250 billion into ailing
banks and guarantee bank debt for up to three years, and it unveiled details [...]
Stock futures give up their gains and now point to a lower start as European markets fall. The Ted Spread — the difference between what banks pay for three month loans (3-month Libor) and what the U.S. government pays (3-month T-bills) — is up 44 basis points to 4.00%, which is a sign that market unease remains high. September same-store [...]
EVIAN, France (Dow Jones)–French president Nicolas Sarkozy Wednesday said that
the coordinated rate cuts by several central banks around the world earlier in
the day was an “excellent decision.”
Speaking to journalists on the fringes of the World Policy Conference in Evian,
eastern France, Sarkozy said the rate cuts address the current economic
situation. He didn’t elaborate.
In a surprise move [...]
NEW YORK (MarketWatch) — Treasurys fell early on Tuesday, sending yields higher,
amid hopes that a financial bailout package will eventually be approved, after
its rejection in Congress Monday sent stocks plunging and bonds surging. In early
action, futures for the broad S&P 500 index were up 2.2%. Two-year note yields
were up 4 basis points at 1.70%. Repeating [...]
NEW YORK (MarketWatch) — Treasurys added to gains Monday after initial indications that the U.S. House of Representatives surprisingly voted Monday against a proposal to prop up financial institutions being dragged down by losses on non-performing debt. Two-year note yields, which move in the opposite direction of prices, fell 34 basis points to 1.76%. The [...]
AIG shares on course for record slump
Insurer hammered over potential downgrades, capital needs
By Alistair Barr & John Spence, MarketWatch
Last Update: 9/12/2008 3:28:00 PM
SAN FRANCISCO (MarketWatch) — American International Group shares were on course
for a record slump Friday on concern the world’s largest insurer may be
downgraded by ratings agencies, triggering billions of dollars in new capital
needs.
AIG [...]
Europe’s economy is weaker, yes. The rise in the euro’s value has hurt exports. However, the vast majority of economists agree that the ECB will not reduce interest rates until the second half of 2009. That’s a long time from now. A lot can happen between then and now. The US economy, in contrast, continues [...]
NEW YORK (MarketWatch) — Treasurys remained higher early Friday after a
government report showed real consumer spending fell 0.4% in July. Ten-year note
yields fell 2 basis points to 3.76%. Nominal spending rose 0.2%, in line with the
median estimate of economists surveyed by MarketWatch. The inflation measure most
closely watched by the Federal Reserve, which excludes food and [...]
CORRECT: EIB Pricing Should Happen Wednesday
Last Update: 8/26/2008 5:52:43 AM
LONDON (Dow Jones)–The European Investment Bank has set price guidance on its
forthcoming three-year, $4 billion global bond at 35 basis points under 3-month
Libor, said one of the banks involved in the deal Tuesday.
JP Morgan (JPM), Barclays PLC (BCS) and Citigroup Inc. (C) have been hired as
joint-lead [...]
THE SKEPTIC: Banks’ Exotic Fear
Last Update: 6/19/2008 11:09:24 AM
By Arindam Nag
A DOW JONES NEWSWIRES COLUMN
In a few weeks investors in some European banks will have to brace themselves to
hear about two different potential sources of losses: basis risk and credit value
adjustments.
It sounds exotic, but simply put, basis risk [...]
UPDATE:Morgan Stanley Earnings Reignite Financial Firm Fears
Last Update: 6/18/2008 12:40:41 PM
(Updates with additional investor comment and fresh CDS and CDX levels)
By Kate Haywood
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)–The cost of debt protection for Morgan Stanley (MS) moved
wider Wednesday after the investment bank unveiled a 60% slump in second-quarter
profit, reaffirming fears about financial firms.
Five-year senior [...]
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