Please, click here to read this article in pdf format: www.sibileau.com/martin/2009/06/11 This is a relevant week in the story of the crisis. I therefore think there is merit in taking a break to examine where we are at: - Treasuries, agency debt and mortgages: As I wrote yesterday, I think a big milestone in this story will be the repayment of TARP
(This article can also be read in pdf format in my website: www.sibileau.com/martin ) Good morning, Yesterday was a relatively quiet day, and judging by the closing of the session, ominously bullish. At close, swap spreads had compressed with mortgage prices regaining some lost ground across the curve, and equities, as we had been expecting, remained
(This blog is also posted on my personal website: www.sibileau.com/martin , where the article can be read in pdf format) The week started on a bearish note. Frankly, it is a note I don’t understand. It is based on the fear that the Fed will raise interest rates. Didn’t the same analysts that now price a rate increase say that deflation was
(This blog is also posted on my personal website: www.sibileau.com/martin , where you can read this article in pdf format) Since last Thursday (Tincho’s letter is not published on Fridays), the world has gotten a bit more complex. We have been saying since March that we do not take the myopic, mainstream view, that inflation is an increase in
(This blog is also posted on my personal website: www.sibileau.com/martin , where the article can be read in pdf format) Yesterday, the markets found the excuses they were looking for to retreat into the so-called safety of Treasuries. I find it ironic, because there is nothing as fundamentally clear as Treasuries are the debt instruments of an insolvent