It’s Jobs Week

Last Week: A light holiday week all around, punctuated by news that America’s economy grew at a faster pace than previously estimated in the fourth quarter, supported by stronger household spending that helped cushion the blow from weakness overseas. Q4’s 1.4% gauge of US GDP – markedly lower than the 2% on Q3 of 2015 […]

Dove Hunting

Last Week: Central banks were the main feature over the last week, with the Fed taking center stage. America’s central bank chose to stand pat on interest rates as expected but implied that we’ll see just two .25% rate hikes this year rather than four. It’s official economic forecasts were also nudged slightly lower. The […]

Draghi’s Bazooka

Last Week: With little on the US calendar, US yields took their cue from sustained gains in equities and oil and actions by the European Central Bank (ECB).  The ECB unleashed a massive and impressive package of monetary measures to weaken the Euro, boost bond prices, raise growth and inflation expectations and free up liquidity […]

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Swaptions 101

We are often asked how a borrower can lock-in long-term rates today on debt maturing in one, two years or beyond. Long-term interest rates are rather attractive by historical standards, but the borrowers dilemma is the debt they want to hedge isn’t due for a couple of years or the project is in a construction […]

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Negative Swap Spreads and What They Really Mean

If you haven’t heard, there’s a lot of buzz going on in the debt markets these days around the fact that something very strange is going on: interest rate swap rates are lower than their US Treasury counterparts. Huh? We understand if you have avoided some of the more technical stories on the topic in […]