SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Bonds & Bond Funds
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: KyrosL12/17/2008 7:46:30 AM
  Read Replies (1) of 161
 
Bond spreads tightened yesterday -- at last!

Across the Curve
Spread Miscellany
December 16th, 2008 5:41 pm

Corporate bonds screamed tighter today. The IG 11 is 242/245 which is about 20 tighter on the day. Secondary corporate bond paper is 10 basis points to 20 basis points tighter. Salesmen who have bemoaned the lack of activity reported robust levels of investor demand.

John Deere brought an FDIC bond today which priced 3 year + 185. Late in the day the issue is better by nearly 50 basis points at 138/128.

There are some very cheap bonds in the 4 year and 5 year sector. There is an American Express bond which matures in April 2013 (not the one I usually roast) which is offered at T+ 560. Quality name banks are trading in the mid 350s. I think as the yield buyers emerge there will be huge spread tightening in that paper.

Mortgages lagged swaps by about 12/32 which one seasoned pro and friend of the blog called a fine performance given the extent of the move in swap rates.

Agency paper in the belly of the curve outperformed swaps by 7 basis points.

Swap spreads are finishing tighter than I reported in an earlier posting. Two year spreads are 18 tighter at 86 1/2 basis points. Three year spreads are 15 tighter at 84 basis points. Five year spreads are 12 1/2 tighter at 75 1/4 . Ten year spreads are 8 tighter at 14 3/4. Thirty year paper is 4 3/4 tighter at NEGATIVE 31 3/4 which means that people are receiving 30 year swaps around 2.50 percent.

acrossthecurve.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News