Treasury Rates: Less than your bargained for

T-bills at zero? 2-year notes less than 1%? 5-year notes less than 2%? Locking up your money for 30-years at 3.30%?If these yields make it sound more like you are donating your money to the Treasury rather than lending it to them, you aren't alone. People are going to struggle to buy anything at such low yields.But your normal precepts about interest rates are not going to hold in a ultra-low i...

Treasury Rates: Less than your bargained for

T-bills at zero? 2-year notes less than 1%? 5-year notes less than 2%? Locking up your money for 30-years at 3.30%?If these yields make it sound more like you are donating your money to the Treasury rather than lending it to them, you aren't alone. People are going to struggle to buy anything at such low yields.But your normal precepts about interest rates are not going to hold in a ultra-low i...

We need? What about you need?

The Fed's new Term ABS Loan Facility (TALF) announced this week could be a significant step in improving credit availability. While many of the details of the program are not yet known, there is already several take aways.First, this looks and smells a lot like a back-door way of reviving some of the TARP's original concept. Consider what we already know about the program. Eligible collateral f...

We need? What about you need?

The Fed's new Term ABS Loan Facility (TALF) announced this week could be a significant step in improving credit availability. While many of the details of the program are not yet known, there is already several take aways.First, this looks and smells a lot like a back-door way of reviving some of the TARP's original concept. Consider what we already know about the program. Eligible collateral f...

Accrued Interest Holiday Edition

Its time for a new tagline for the blog. So in proper geek fashion, I've created a poll. The options are...Republic credits? Credits are no good out here. I need something more real.More wealth than you can imagineThat was before the dark times... before deleveragingOr suggest something else in the comments.

Accrued Interest Holiday Edition

Its time for a new tagline for the blog. So in proper geek fashion, I've created a poll. The options are...Republic credits? Credits are no good out here. I need something more real.More wealth than you can imagineThat was before the dark times... before deleveragingOr suggest something else in the comments.

And NOW young monoline... you will die

Moody's has downgraded FSA and Assured Guaranty on Friday, claiming that with the future of municipal monoline insurance uncertain, it is unlikely that any stand-alone insurer could ever get a Aaa rating. I predicted the death of these insurers back in July when Moody's first put both on negative watch. For several months it appeared I was wrong, as either FSA or Assured wrapped approximately 2...

And NOW young monoline... you will die

Moody's has downgraded FSA and Assured Guaranty on Friday, claiming that with the future of municipal monoline insurance uncertain, it is unlikely that any stand-alone insurer could ever get a Aaa rating. I predicted the death of these insurers back in July when Moody's first put both on negative watch. For several months it appeared I was wrong, as either FSA or Assured wrapped approximately 2...

My God, they aren't kidding!

The Fed will be buying up to $600 billion in debt and MBS backed by Fannie Mae and Freddie Mac. Yeah, that'll move the market. Today we had Agency debt 30-40bps tighter, swaps about 15bps tighter, and MBS about 35bps tighter.Here is the quick take from that. I love agency and MBS debt for long-term holders, but I'd probably wait for this to settle out before buying anything. This week is classi...

My God, they aren't kidding!

The Fed will be buying up to $600 billion in debt and MBS backed by Fannie Mae and Freddie Mac. Yeah, that'll move the market. Today we had Agency debt 30-40bps tighter, swaps about 15bps tighter, and MBS about 35bps tighter.Here is the quick take from that. I love agency and MBS debt for long-term holders, but I'd probably wait for this to settle out before buying anything. This week is classi...