Posts from Monday Jan 28 2013

The Closer


The S&P 500 ended its longest rally since 2004… just. The index closed down 0.2 per cent at 1,500.18 (Bloomberg). Read more

Cut and paste – your guide to ‘economic’ vs ‘regulatory’ liquidity

Are you a bank agonising over whether to keep your triple A-rated covered bonds as part of your liquidity buffer or send them to the European Central Bank? Not sure what to do with your AA-rated non-financial euro corporate debt?

Then you need this handy table from BofAML’s structured finance guru, Alexander Batchvarov. Read more


Whatever it is that Iceland gains from winning this EFTA court case on the Icesave deposits…

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A declining but distorted euro M3

The release of December’s euroland M3 and lending data on Monday got a bit more attention than usual following last week’s larger-than-expected LTRO repayments. Could, we wondered, there be further evidence of the regions financial markets are healing?

The picture was mixed, with a number of likely distortions confusing things, but on the whole it was probably a bit more positive than negative. Read more

First time in a while: 10 year Treasuries pierce 2 per cent

In case you missed the moment earlier on Monday, here’s the yield on US 10 year paper breaking through 2 per cent – albeit momentarily. At pixel the reading stood at 1.99… Read more

Money markets thawing? Yes, in a glacial sense

So the Bank of England has decided to give its new-fangled biannual Money Market Liaison Group Sterling Money Market Survey (first launched in May 2011) more oomph.

No longer will the results sit, largely unnoticed, in one of the Bank’s quarterly bulletins. From now on the survey will be presented on a standalone basis, with its very own pdf and cover illustration, which looks like this: Read more

Bye, bye RoRo

For US dollar pairs at least…

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Banker demonstrates willingness to wear tights to acquire paperweight of glory

Yes, dear readers, it is awards season. The time of year when the content of the most ignored slides in pitchbooks is decided upon. Even disclaimers may be read more, if only to discover if the poor, hapless, underslept and under-exercised analyst who wrote it remembered to do a find-and-replace for the previous client to whom the book was presented.

It has come to our attention that in this latest round, a couple of banks are taking notably different approaches to the Euromoney FX survey. And of course, we couldn’t resist taking a look at the methodology of the thing. Read more

Markets Live: Monday, 28th January, 2013

Live markets commentary from 

The (early) Lunch Wrap

Ackman vs Ichan || Argentine pari passu saga continues || Living wills || The looming sequester || BofA shifts derivatives from Ireland to the UK || MPS bailout bonds approved || The next generation of CLOs || Computing patents hit new high in 2012 || Toyota retakes top spot Read more

Ackman and Icahn will never be friends

In case anybody missed it, here’s Bill Ackman and Carl Icahn having some fun on CNBC. Seriously, seriously worth your time:

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Further reading

Elsewhere on Monday,

Thresholds for QE.

– From welfare queens to disabled deadbeats.

– Estimating the impact of immigration policies. Read more

The 6am Cut London

Asian shares mixed, yen touches 2010 low || Bank regulators losing faith on improved global co-operation || China Q4 industrial profits rise 17.3% || US sequestration cuts looking more likely || BofA moves derivatives from Dublin to UK || Evidence of Singapore offshore forex rate manipulation || New European CLOs near || Bumi directors reject Rothschild’s plan || China’s new shadow bankers || Global MBA rankings || The demise of trust  Read more