Data to Bolster Fed Confidence to Hike Twice More this Year

Last Week: Interest rates traded mostly flat as equities advanced on the week, underpinned by signs that trade tensions between the US and the European Union are easing, solid corporate earnings reports and upbeat US economic growth data. The yield on the US 10-year Treasury note rose 10 basis points to 2.96%, and 1-month LIBOR […]

Resist the Flat Yield Curve Hype

Last Week: Interest rates were mixed and global equities rose modestly as geo-political tensions and solid economic data continued their tug-of-war on markets. The yield on the US 10-year Treasury note rose 3 basis points to 2.86% while 1-month LIBOR fell 1 basis point to 2.069%. Oil fell another $2.50 to $68, as the US […]

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The ISDA Agreement: Borrower Beware

The ISDA agreement –  the seemingly incomprehensible document that governs most interest rate hedges  – has just been delivered to your inbox by your friendly banker. You’re in the midst of a floating rate financing negotiation with the bank that involves entering into a interest rate swap to hedge the floating rate risk. You notice in the email that […]

Positives of Tax Reform Outweighing Negatives from Tariffs

Last Week: Interest rates were mixed while global equities rose despite elevated trade tensions. While the trade picture hasn’t improved, hopes for renewed talks between the US and China supported a new “risk-on” sentiment. The yield on the US 10-year Treasury note rose 2 basis points from a week ago, while 1-month LIBOR fell to […]

Trade Hardball to Make You Uncomfortable Through Year’s End

Last Week: Interest rates fell, and equities were little changed as trade tensions dominated financial headlines. The yield on the US 10-year Treasury note slipped 5 basis points to 2.82%, as 1-month LIBOR followed suit, falling to 2.08% from 2.10% the week prior. The price of oil eased off its recent highs to wrap the […]