HYBRIDS: Hybrids: Week in Review
Mar-14 14:46
Hybrids: Week in Review
- CityCon perps fell significantly following a cut by S&P and withdrawal by Moody’s. CITCON 7.875 Call29 lost 3.35pts to yield 9% to Reset.
- Duration came into play for long-dated quality names. TTEFP 3.25 Call36 dropped 1.78pts and ENIIM 4.875 Call34 fell 1.67pts. In both cases this was really a delayed reaction to the initial Bund yield move from last week.
- Estone 7.875 Call29 was cut to B from B+. Weaker shale results and volatility of the unregulated business were responsible for the move. Bonds were 84c lower on the week to yield 6.19%
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Historical bullets
US DATA: Notable How Core Services Beat Driven By Supercore Rather Than Rents
Feb-12 14:45
The lack of an upside surprise from rental inflation within the January CPI report was notable, considering the beat for core CPI was concentrated in non-housing core services (plus core goods) and the Fed is more sensitive to market-based services prices rather than the imputed CPI rents series.
- Within the details, OER printed 0.31% M/M (range 0.28-0.36) after an unrevised 0.31% in Dec, whilst primary rents saw a modest beat with 0.35% M/M (range 0.27-0.32) after a marginally downward revised 0.30% in Dec.
- It left the weighted average of 0.32% M/M in January after 0.31% M/M. The 0.25% M/M in Nov (revised up from 0.23%) is still the only month since Apr 2021 that has been at or below the 0.27% averaged pre-pandemic when looking for a crude look at normalization progress.
- Whilst the Fed is likely to have confidence that housing inflation will continue to moderate considering the pipeline implied by new lease data, progress has been slower than expected and it will need to see mutiple months with softer monthly prints.
EGB OPTIONS: Bund outright call buyer
Feb-12 14:44
RXH5 134c, bought for 6 in 10k.
EQUITIES: Program seller on the US Cash Open
Feb-12 14:38
No real surprises in seeing a decent program seller on the Open as Cash Equities gapped lower.
- Program seller with 1688 names, this was the most since 18th December.
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