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Republished from Felix Salmon in: “Seeking Alpha”

Nov 6 2013, 02:23

In the September issue of Euromoney, Peter Lee has a huge investigation into what he calls “the great bond liquidity drought”. The landing page for the story features subscriber-only links to the whole thing, as well as free-to-access links to various sections. But it also neatly summarizes the problem in a single paragraph:

Liquidity is drying up across the bond markets. Regulations designed to curtail banks’ ...

Republished from: “Barron’s”

July 23, 2013, 11:40 A.M. ET
BofA: Annual Losses Likely For High-Grade Corporate Bonds
By Michael Aneiro

Bank of America Merrill Lynch today says Ben Bernanke’s most important accomplishment over the past few weeks has been “to significantly ...

Republished from: “BusinessWeek”

Rising corporate-bond trading signals that liquidity is robust even as Wall Street’s biggest banks cut their inventories of the securities in response to new rules and regulations, according to JPMorgan Chase & Co.

Average daily trading volumes in U.S. investment-grade corporate ...

Republished from Dr. Ed Yardeni’s blog: “Dr. Ed’s Blog”
Last week late in the day on Wednesday, Fed Chairman Ben Bernanke answered several questions from the audience after presenting a speech. His response to one of them sent stock prices soaring on Thursday: “Highly accommodative monetary policy for the foreseeable future is what’s needed in the US economy.” The S&P 500 rose 1.4% on Thursday, and 3.0% last week. It is now up 6.8% since ...

Republished from The T-Report: “Peter Tchir’s T-Report”
Pretty much a snooze. A little surprising that Citi has done so well while JPM slipped, but will take a closer look and see if anything from the data and results leads to trading thoughts, but initial reaction is that there isn’t much here. Maybe BAC and C get a pop as people think they will be able to pay out bigger dividends or do stock buybacks (I ...

Republished from The T-Report: “Peter Tchir’s T-Report”
The T-Report: Corporate Bonds, ETF’s, and Feedback Loops

This is a T-Report from September, but we have dusted it off as it is relevant again.
The high yield ETF’s are trading now at a bit of a discount, and even LQD is. That could be viewed as an indication that they are “cheap” and will be about to be bid, but I think that is the wrong interpretation right ...

Republished from Dr. Ed Yardeni’s blog: “Dr. Ed’s Blog”
Let’s assume that President Obama really wants to reduce the federal deficit by trillions of dollars over the next 10 years rather than mint platinum coins. Then most of that money will have to come out of defense spending if the Republicans won’t let him increase taxes again and he won’t cut spending on entitlements. Over the past 12 months through ...

Republished from Dr. Ed Yardeni’s blog: “Dr. Ed’s Blog”
So what is the correct P/E for the S&P 500? Our “Blue Angels” analysis of earnings momentum and valuation shows that 13 has been an unlucky number for the P/E for the past three years. The rallies of 2010 and 2011 were followed by nasty corrections after the P/E rose to 13. On September 14, the P/E was back just above this jinxed level. Now it ...

By Tommy Wilkes
LONDON | Tue Jul 31, 2012 4:18pm IST
(Reuters) – The type of hedge funds that bet against JP Morgan and made money from its $5.8 billion (3.7 billion pounds) “London Whale” trading loss has risen to the top of investors’ buying lists for the coming quarter, a survey showed.

Of 157 investors polled across the globe, 53 percent said they planned to allocate cash to credit relative value funds in the coming quarter, according to Credit Suisse’s ...

Republished from Bloomberg: “Bloomberg”
Junk Appeals With Spreads Wider Than Pre-Crisis, McClellan Says
Bloomberg – July 26, 2012 – By John Detrixhe and Stephanie Ruhle
Junk-rated corporate bonds are “attractive” with relative yields on the debt still wider than before the financial crisis, according to JPMorgan Private Bank’s Megan McClellan.
Speculative-grade securities yielded 640 basis points, or 6.4 percentage points, more than similar-maturity Treasuries as of yesterday, according to Bank of America Merrill Lynch index data. That ...