Weekly Foreign Flows to Long-Dated U.S. Credit Surge: Barclays 2021-05-14 13:33:59.208 GMT By Jack Pitcher (Bloomberg) — Foreign flows into longer-dated U.S. credit this week were the highest of the year, potentially due to expectations that hedge-adjusted yields will increase, according to Barclays strategists. * Foreign flows, measured by net dealer-to-affiliate volume, into the 7-12 year and 12 year+ buckets, are by far the highest weekly total of the year, Barclays strategists Bradley Rogoff and Shobhit Gupta wrote in a note Friday ** Those flows are over $2.3 billion for the week as of Fr ..read more

Deutsche Bank Overhauls Fixed Income Sales in Ongoing Cost Drive 2021-05-12 16:14:57.403 GMT By William Shaw and Steven Arons (Bloomberg) — Deutsche Bank AG is rearranging how it sells fixed-income trading products as it seeks to lower costs while avoiding falling revenue at the company’s biggest source of income. The new model will divide the coverage team into two groups, one focusing on flow and liquidity and another on client solutions. That’s in an effort to provide purely electronic offerings to one set of clients, and more advanced — and more expensive ones — to another. The bank will p ..read more

BFW 05/10 17:11 GUIDANCE: Amazon $Benchmark Debt Offering in 8 Parts BFW 05/10 12:14 NEW DEAL: Amazon $Benchmark Debt Offering in 8 Parts (1) BFW 05/10 12:03 NEW DEAL: Amazon $Benchmark Debt Offering in 8 Parts LAUNCH: Amazon $18.5b Debt Offering in 8 Parts 2021-05-10 18:42:50.919 GMT By Michael Gambale and Bloomberg Automation (Bloomberg) — Deal launched. * $1b 2Y Fixed (May 12, 2023) at +10 ** Guidance +15a (+/-5), IPT +30 area ** MWC ** See security information: 2Y Fixed * $2.5b 3Y Fixed (May 12, 2024) at +20 ** Guidance +25a (+/-5), IPT +45 area ** MWC ** See security information: 3Y Fixed ..read more

Hoisington Says Bonds Will Soon Escape ‘Inflationary Psychosis’ 2021-04-09 19:18:37.433 GMT By Elizabeth Stanton (Bloomberg) — Inflation fears, a key driver of the Treasury market’s biggest quarterly loss in decades, are a “psychosis” that will fade away over the course of the year, Hoisington Investment Management Co. said in its latest quarterly report. “Contrary to the conventional wisdom, disinflation is more likely than accelerating inflation,” the report said. After moving higher during the second quarter, the annual inflation rate “will moderate lower by year end and will undershoot the ..read more

Short Bets in $14 Billion Treasury ETF Say Yield Calm Will Break 2021-04-06 16:17:24.422 GMT By Katie Greifeld (Bloomberg) — As Treasury yields stall near their prepandemic highs, investors are wagering that the tranquility will be short-lived. Short interest in the $14 billion iShares 20+ Year Treasury Bond exchange-traded fund (ticker TLT) has climbed to about one- fifth of the shares outstanding, the highest since early 2017, according to data from IHS Markit Ltd. Bearish bets have risen from 7% at the start of 2021 amid the fund’s 13% year-to-date drop. While the bond selloff that’s hammer ..read more

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Via Bloomberg: Cleveland Fed Oct. 10Y Inflation Expectations Rose to 1.89% 2017-10-13 18:11:10.646 GMT By Alex Tanzi (Bloomberg) — Suggests inflation expectations of less than 2% on average over the next decade, according to the Cleveland Fed. * One year inflation expectation at 1.95% v 1.74% a year ago * 5Y inflation expectation at 1.81% v 1.59% a year ago * 10Y inflation expectation at 1.89% v 1.70% a year ago * 20Y inflation expectation at 2.07% v 1.93% a year ago * 30Y inflation expectation at 2.20% v 2.09% a year ago * The Federal Reserve Bank of Cleveland’s inflation expectations model u ..read more

Via Bloomberg: Bad Omen for Bad Debt in U.S. Bank Earnings 2017-10-12 12:30:38.544 GMT By Laura J. Keller (Bloomberg) — Increases for bad-debt provisions could end up being a theme this earnings season for big U.S. banks. Citigroup’s provision for credit losses rose 15 percent to $2 billion in the latest quarter, more than expected. Earlier, JPMorgan reported a disappointing surprise on provisions, too. It had a 20 percent increase sequentially. This indicates those who worry about banks’ credit quality have their sign: The consumer really may be weaker. Perhaps things are turning in this cred ..read more

Via Bloomberg: Record Set; Clients Hold the Most Corporate Bonds Since 1999 2017-08-09 16:55:35.338 GMT By Robert Elson (Bloomberg) — Client allocations to corporate bonds jumped to 37.1% in the latest week vs 36.9%, according to the SMR Money Manager Survey Asset Allocation. The previous high of 37.0% was seen in June 2017 and also in August 2016. * The survey began at the low of 19.1% in August 1999 * “Corporate allocations have averaged 36.7% this year, ranging from 36.2% to 37.1%,” according to SMRA’s John Canavan * “Over the past five years, corporate allocations have averaged 34.9 ..read more

Via Bloomberg: The Smoking Hot Bond Deal of the Summer Is On Its Way: Gadfly 2017-08-08 10:20:28.782 GMT By Marcus Ashworth and Mark Gilbert (Bloomberg Gadfly) — It’s enough to give any treasurer a smoker’s cough: launching the third-biggest fundraising ever during the August lull, in an industry that’s been roiled by regulators, by a company that’s just suffered a two-step rating downgrade. Company may raise $25 billion Not a problem for British American Tobacco Plc. It’s in the process of raising $25 billion in what may be the largest corporate bond offering of the year. The maker of Lucky S ..read more