Monday, Feb. 23, 2015

Corporate Bond Market
US equity futures are down slightly to start the week.  DJIA Fut -32, S&P Fut -3.7.  The US Treasury market is pretty much unchanged to start with the 10yr last at a 2.11%.  Oil is down to $48.90 in early trading.  European equities are all up on news that Greece will receive a four month extension on the bailout.  The yield on the Greek three-year note is down to 14.82%. We continue to view Greece as a near term market mover and expect headlines to persist.  Credit markets are opening up quiet,  unchanged to slightly weaker for choice.  The Investment Grade index is +⅛ at 63¼/63¾, still holding on to most of last week's rally.

In the headlines this morning, HSBC equity is trading down on weaker-than-expected profit numbers.  It appears the global banking giant is still mired in a tax evasion scandal at their private bank and the market is not encouraged.  Dish Networks reported in line this morning with Tenet Healthcare, Stifel Financial, and Express Scripts numbers all due out later today.  Secondary trading has been slow with most market players all going the same way and continued demand for yieldy front end paper that is hard to find.

Friday was slow on the new issue front with only $12.5bn priced.  This is the lowest weekly volume YTD.  No deals announced yet today but I would expect activity to pick up.  On the economic data front:  Home Sales Numbers due out at 10am.


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