Tag Archives: ron quigley

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Fixed Income, People Profiles

Giving Credit When Due- IWD & Women on Wall Street

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Credit Markets Are More Than Just Selling Credit; Includes Giving Credit When Due: to The Women on Wall Street!

MarketsMuse Fixed Income Curator Sara Abel spotlighted a superb salute to one of the top Women on Wall Street in connection with a bond issuance brought yesterday by Citigroup which was ‘dedicated to’ International Women’s Day (IWD). Here’s the excerpt of the article, courtesy of daily debt market commentary published by minority broker-dealer Mischler Financial Group under the banner “Quigley’s Corner” and authored by Managing Director & Head of Fixed Income Syndicate Ron Quigley..

Quigley’s Corner 03.13.17  Stella Won’t Stop The Show!; Saluting Women on Wall Street

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Ron Quigley, Mgn.Dir. Mischler Financial Group

Today, our good friends at Citibank N.A. issued a 2yr FXD/FRN in honor of International Women’s Day (“IWD”), which was last Wednesday, March 8th. IWD is a global day celebrating the social, economic, cultural and political achievements of women among others. So, today it was a privilege and an honor to step aside and watch as Team Citi once again showed why they have been and continue to be a leading force for diversity in our IG dollar DCM.  Congratulations to the continued collective team efforts of everyone at Team Citi! The nation’s oldest Service Disabled Veteran broker dealer sends its five-star salute to each of you and as well as to all the women in our world and lives. The seven featured Women-Owned diversity broker dealer/investment banks on today’s Citibank N.A. “IWD” deal were:

  • L. King & Associates
  • CAPIS Institutional Services, Inc.
  • Lebenthal & Company LLC.
  • MFR Securities, Inc.
  • Siebert, Cisneros Shank & Cop., L.L.C.
  • Telsey Advisory Group
  • Tigress Financial Partners

Why would the financial industry’s oldest (and arguably largest) minority broker-dealer owned/operated by Service-Disabled Veterans  tout competing minority broker-dealers?  Well, I’d ask “why wouldn’t we?!”  Firstly, its the right thing to do! Second, it provides us the opportunity to showcase one of the global capital market’s leading and cutting edge D&I initiatives, while tipping our hat to the leading women in our diversity space.  So, congratulations for the glass ceilings raised and doors that Citigroup has helped open at their own financial institution through their own incredible procurement initiatives, as well as externally for all these leading women-owned firms. We extend a hardy congratulations to the respective women of D&I in our financial services industry. All for one, and one for all!

So, where do all these ideas originate?  A good place to start looking is from the top down at Citigroup.  Today I would suggest looking first in the office of one Suni Harford….

Who is Suni Harford?

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Suni Harford, Citigroup

Suni Harford, Citigroup

Suni Harford is a Managing Director and Citigroup’s Regional Head of Markets for North America. In this capacity, Suni oversees the North American sales, trading and origination businesses of Citi’s securities and banking franchise. Citi maintains a premier position across all of its fixed income, currency, equity and commodities offerings. In addition to her current responsibilities, Suni is a member of Citi’s Pension Plan Investment Committee, and a Director on the Board of Citibank Canada. Suni is also the co-head of Citigroup’s global women’s initiative, Citi Women.

Prior to her current assignment, Suni was Citi’s Global Head of Fixed Income research, where she was responsible for Citigroup’s credit analytics, research strategy and fixed income quantitative analytics efforts globally. Suni also had oversight of Citi’s premier fixed-income analytics platform, The Yield Book. From 1995-2004, Suni served as the co-head of Citi’s Fixed Income Capital Markets origination business, where she managed relationships with financial institutions.

Not that she doesn’t have enough on her plate, Suni also serves on the Board of Directors of The Depository Trust & Clearing Corporation, the Board of Directors of The Forte Foundation, a national, non-profit organization dedicated to increasing the number of women leaders in business, the Board of the Friends of Hudson River Park, and the Board of Taproot Foundation, a national organization engaged in skills-based volunteerism and pro-bono philanthropy. Suni is also passionate about awareness and support for our veteran community, and she is involved in many organizations in this regard. In addition to serving on the U.S. Chamber of Commerce Veteran’s Employment Advisory Council, Suni has worked with First Lady Michele Obama’s Joining Forces initiative. Suni also represents Citi as a founding member of Veterans on Wall Street, a coalition of major financial services firms established in 2010 to engage the broader industry in efforts to support our transitioning veterans. Having helped formalize Citi’s very successful Veterans Initiative, CitiSalutes, in 2009, Suni remains the senior business sponsor for the initiative.

For those not already aware of her pedigree, Suni joined Salomon Brothers in January 1993, after five years with Merrill Lynch & Co. where she was a Vice President in Investment Banking. Suni joined Merrill upon graduation from the Amos Tuck School of Business at Dartmouth College, where she received her M.B.A. Suni received her Bachelor of Science degree from Denison University, where she majored in physics and math.

Pretty impressive stuff right there folks. Now you know why Suni Harford was named one of  2016’s Top 20 Most Powerful Women on Wall Street!

So, in light of International Women’s Day and today’s honorable $2b Citibank N.A. “IWD” two-part new issue a “thank you”– not only to Suni, but to all the women in our investment grade debt capital markets and in our lives in addition to those who help perpetuate a more inclusive financial services industry.

Before I conclude, a bit of Women-on-Wall Street trivia for you from the guy-in-the-corner’s personal treasure trove –

to continue reading, please visit the 13 March edition of Quigley’s Corner investment grade corporate debt commentary via this link

 

Continue reading →

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Fixed Income, Global Macro Strategy, People Profiles

Strong Demand For Yield-Outsize Demand For IG Corporate Bonds

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MarketsMuse Fixed Income Curators have been keeping tabs on the seemingly insatiable and outsize demand for yield and in particular, the demand for IG Corporate Bonds aka  investment grade corporate debt. With that, we roll to opening excerpt of Aug 9 notes from “Quigley’s Corner”, the financial industry award-winning commentary produced by Ron Quigley, Head of Fixed Income Syndicate for boutique investment bank/institutional brokerage Mischler Financial Group, the securities industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans..

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Ron Quigley, Mischler Financial Group

Today things slowed down a bit for the IG dollar DCM but it was still a formidable line-up. We featured 5 IG Corporate Debt issuers that priced 9 tranches between them totaling $7.66b.  The Asian Development Bank priced its expected two-part 3s/10s new issue in the SSA space that totaled $1.3b bringing today’s all-in IG tally to 6 issuers, 11 tranches for $8.96b.

WTD we have now priced 85% of the syndicate midpoint average forecast for the week or $19.46b vs. $22.80b.
MTD we eclipsed the syndicate estimate for the month after only 7 sessions or $68.41b vs. $61.13b.

The big deal of the day in the IG Corporate Debt space was Duke Energy Corp. $3.75b 3-part 5s/10s/30s issued to finance a portion of costs in connection with Duke’s acquisition of Piedmont Natural Gas Company Inc.   Last week Duke Energy (NYSE:DUK) announced it mandated Barclays, Credit Suisse, Mizuho, MUFG Securities and UBS as joint leads to arrange investor calls after which a transaction could soon follow.  As has been written in the “QC” pipeline for a while, on Friday, January 22nd, shareholders of Piedmont Natural Gas (A2/A) voted to approve the Company’s acquisition by Duke Energy (A3/BBB+).  66.8% of voting shares supported the acquisition.  In late October 2015, Duke Energy, (A3/BBB+) the nation’s largest utility, announced that it will buy Piedmont Natural Gas (A2/A) for $4.9b in cash.  Both companies are partners in the $5b Atlantic Coast Pipeline.  The purchase adds one million new rate payers to Duke Energy’s customer base.  Congrats to Duke!

Rates on the Rise?…Think Again.

Today the U.S. Treasury held a 3-year notes auction.  It was one of the strongest in years.  Investors or buyers, for that matter, fly into the safety of USTs motivated by fear and desire for safety.  No one flies into 3yr Notes for the 0.85% yield.  You want my money?  Let’s talk about 5-8% and we can discuss it.  So, when I heard the 3yr auction was so wildly successful I pulled up a chair next to my rates guru Mr. Tony Farren to discuss the matter.  Here are the prescient takeaways:

  • The auction stopped thru 1.2 bps which is a big stop for a 3yr auction.
  • Dealers bought 33.7% of it versus the 6-month average of 38.2%.
  • The bid-to-cover or oversubscription rate was 2.98x versus the 6-month average of 2.76x.
  • Bidders at the auction yield (stopped 1.2 bps thru) only received 54.18% of their size bid for (so, if you bid for $100mm you only wound up buying $54.18mm).

What does it all mean?  Lower-for-longer.  The Fed is not raising rates anytime soon folks.  Taking rate volatility off the table means dive int the stock market readers.  Get back in now.

To read the full (excerpted edition) of Aug 9 edition of “Quigley’s Corner”, please click here

Fixed Income, Global Macro Strategy, People Profiles

BREXIT v BREMAIN: Should I Stay or Should I Go..

BREXIT or BREMAIN the NEVERENDUMS Will Continue in Europe

“Should I Stay or Should I Go? That Answer Is Self Evident…”

A Global Macro perspective from Debt Market Veteran..Music by Clash,  Comments by Quigley

Below excerpt courtesy of 22 June edition of  “Quigley’s Corner”, the industry award-winning debt capital market commentary from Ron Quigley, Managing Director of boutique investment bank / institutional brokerage Mischler Financial Group, the financial industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans

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Ron Quigley, Mgn.Dir. Mischler Financial Group

Everyone is now saying how anxious the markets are to get the U.K. referendum vote out of the way.  It’s been like a dark cloud hovering over the financial services industry.  However, they are also increasingly pointing out that even with a vote to BREXIT, the actual impact will be much less severe than first anticipated.  So, without further ado and since the potential impact has been overplayed these last several weeks, I need to chime in here with one day left to voice why the U.K. should want to part from the EU.

Over the last several days British PM David Cameron’s rally cry has been “Brits Don’t Quit” which from my perspective is akin to saying “Brits are followers not leaders.” The U.K. has a long history of doing the right thing at the right time.  I point no further than its involvement in both chapters of World War II.  That right there is foundational to the people of the U.K. – doing things for the greater good in defense of Britain and our allies  Staying in the EU would be doing the wrong thing that will hurt Britain.  But I know you want more meat on this bone so let’s get to it:

As I’ve said from the get go, Britain left the EEC – the precursor to the EU – in 1982 in a special referendum vote in which the “leave” vote garnered 52% to the “stay” vote’s 48%. Sound familiar?  The U.K. also never adopted the single currency and the Schengen Agreement has no place because the U.K is an island nation. Still the Euro and Schengen are the foundational building blocks for a successful EU.  The continent is now into negative rates, there are far too many cultures, borders, nationalities, customs, histories and languages to virtually have doomed the EU from the start. That’s why the U.K. was never part of the EU’s core thesis.

Unemployment will not rise in the U.K.  on a BREXIT rather it will hammer out a UK/EU trade agreement to maintain continued healthy trade with the European continent.

For those EU chiefs threatening “if there’s a BREXIT, the U.K. will NEVER rejoin the EU again!”  here’s what I have to say on the subject : Advocates to BREMAIN claim that the U.K. maintains a balance of power in Europe that has preserved peace following World Wars I & II.  First, I state that WW I & II were actually one VERY long war with a pregnant pause between them.  Europe could not keep itself together.  History shows that is true.  So, follow the logic – if the U.K. leaves and Europe heads toward the cusp of war, don’t you think the continent would do everything in its power to avoid another catastrophe?  Europe would obviously welcome Britain with open arms! Not that the U.K. would then chose to jump back onboard.

For those of you not sure, however, let’s take Greece as an example.  Greece has been bailed out three times by the EU.  They are in every aspect of the term a laggard economy and society.  I have nothing against Greece or Greeks but the word AUSTERITY is not in their vocabulary! ………Hold on a moment,  as I need to check that with some phone calls.  Oops, sorry folks, in my ambition to get the details right I stand corrected.  The word for “austerity” in Greek is “λιτότητα.” So, it does actually exist but the rest of the world can’t seem to decipher those characters – quite literally. Having said that austerity is not embraced by Greek society.  They are all about enjoying life and taking it easy.  That’s why the average lifespan for a male is 78.6 years and a female is 83.9 years. The average is 81.3 years ranking it 20th in the world. Conversely, we here in the U.S., we rank 26th and at the end of the day isn’t life what it’s all about. So, that’s my concession to Greece, a longer life span because they’re obviously not stressed what with everyone else paying the freight and carrying their load. The point here is that if the EU bailed out that laggard nation THREE TIMES do you really think the idle threat to the U.K. of never being invited back into the EU has any remote credibility with Brits at all?  I mean c’mon, get real.  Europe is dismantling faster and faster with each month.  Britain should want no part of it. Continue reading →

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Fixed Income

Avalanche of Investment Grade Corporate Debt Deals

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Below extract is courtesy of May 09 edition of daily debt capital market commentary and focus on investment grade corporate debt deals courtesy of boutique investment bank Mischler Financial Group, the financial industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans. MarketsMuse editorial team adds: “Make no mistake, the phrase ‘service-disabled’ applies to members of the military injured in the line of duty and no longer certified for combat situations. The heroes who have earned “SDV certification” are highly-trained, uniquely capable and often, thanks to the skills learned while serving in the U.S. military, are more qualified than most to meet and exceed job requirements across every facet of any business setting.

Today makes it clear why I featured “The Most Interesting Man in the World” in last Friday’s “QC” saying, “EMBRACE NEXT WEEK’S IG ISSUANCE

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Ron Quigley, Mgn.Dir. Mischler Financial Group

AVALANCHE!” Just look at today’s numbers: 10 IG Corporate issuers priced 25 tranches between them totaling $25.10bn.  SSA featured 1 issuer and 1 tranche for $500mm bringing today’s all-in IG day total to a monolithic 11 issuers, 26 tranches and $25.6bn.

Here’s where today stands:

 

The 7th highest IG dollar new issue volume day of all-time.

The 2nd busiest day of 2016 for the same.

The 3rd highest number of tranches priced in history.

New Issues Priced Today’s recap of visitors to our IG dollar Corporate and SSA DCM:For ratings I use the better two of Moody’s, S&P or Fitch.IG

Issuer Ratings Coupon Maturity Size IPTs GUIDANCE LAUNCH PRICED LEADS
AbbVie Inc. Baa2/A- 2.30% 5/14/2021 1,800 +135a +120a (+/-5) +115 +115 BAML/BARC/DB/JPM
AbbVie Inc. Baa2/A- 2.85% 5/14/2023 1,000 +150a +140a (+/-5) +135 +135 BAML/BARC/DB/JPM
AbbVie Inc. Baa2/A- 3.20% 5/14/2026 2,000 +165a +155a (+/-5) +150 +150 BAML/BARC/DB/JPM
AbbVie Inc. Baa2/A- 4.30% 5/14/2036 1,000 +195a +180a (+/-5) +175 +175 BAML/BARC/DB/JPM
AbbVie Inc. Baa2/A- 4.45% 5/14/2046 2,000 +210a +195a (+/-5) +190 +190 BAML/BARC/DB/JPM
Banco de Bogota Ba2/BBB 6.25% 5/12/2026 600 mid 6.00%a 6.50%a (+/-12.5) 6.50% +474.8 CS/JPM/HSBC
Burlington Northern Santa Fe, LLC A3/A 3.90% 8/01/2046 750 +155a +135a (+/-2) +133 +133 CITI/GS/JPM
Chevron Corp. Aa2/AA- FRN 5/16/2018 850 3mL+50a 3mL+50 the # 3mL+50 3mL+50 BAML/JPM/WFS
Chevron Corp. Aa2/AA- 1.561% 5/16/2019 1,350 +70a +70 the # +70 +70 BAML/JPM/WFS
Chevron Corp. Aa2/AA- FRN 5/16/2021 250 3mL+equiv 3mL+equiv 3mL+95 3mL+95 BAML/JPM/WFS
Chevron Corp. Aa2/AA- 2.10% 5/16/2021 1,350 +90a +90 the # +90 +90 BAML/JPM/WFS
Chevron Corp. Aa2/AA- 2.566% 5/16/2023 750 +105a +105 the # +105 +105 BAML/JPM/WFS
Chevron Corp. Aa2/AA- 2.954% 5/16/2026 2,250 +120a +120 the # +120 +120 BAML/JPM/WFS
Deutsche Bank Baa1/BBB+ FRN 5/10/2019 500 3mL+equiv 3mL+equiv 3mL+191 3mL+191 DB-sole
Deutsche Bank Baa1/BBB+ 2.85% 5/10/2019 1,600 +212.5a +200 the # +200 +200 DB-sole
Deutsche Bank Baa1/BBB+ 3.375% 5/12/2021 1,500 +237.5a +225 the # +225 +225 DB-sole
Duke Energy Indiana LLC Aa3/A 3.75% 5/12/2046 500 +130a +115a (+/-3) +115 +115 CS/GS/MIZ/USB
GATX Corp. Baa2/BBB 5.625% 50NC5 150 5.75%a RG: 5.625%a
+5.75%a		 5.625% $25 par BAML/MS
Waste Management Baa2/A- 2.40% 5/15/2023 500 +110a N/A +90 +90 BAML/CITI/MIZ
Westpac Banking Corp. Aa2/AA- FRN 5/13/2019 250 3mL+equiv 3mL+equiv 3mL+71 3mL+71 BAML/CITI/GS/JPM
Westpac Banking Corp. Aa2/AA- 1.65% 5/13/2019 750 +95a +85a (+/-5) +80 +80 BAML/CITI/GS/JPM
Westpac Banking Corp. Aa2/AA- FRN 5/13/2021 250 3mL+equiv 3mL+equiv 3mL+100 3mL+100 BAML/CITI/GS/JPM
Westpac Banking Corp. Aa2/AA- 2.10% 5/13/2021 1,250 +110a +100a (+/-5) +95 +95 BAML/CITI/GS/JPM
Westpac Banking Corp. Aa2/AA- 2.85% 5/13/2026 1,500 +137.5 +120a (+/-5) +115 +115 BAML/CITI/GS/JPM
WW Grainger Inc. A2/AA- 3.75% 5/16/2046 400 +140a +120a (+/-3) +117 +117 HSBC/MS/WFS

         

For the entire edition of Quigley’s Corner, including a full analysis of the day’s debt capital market activity, please click here  

SSA

Issuer Ratings Coupon Maturity Size IPTs GUIDANCE LAUNCH PRICED LEADS
Mubadala Dev. Co. PJSC Aa2/AA 2.75% 5/11/2023 500 MS+170 MS+150 MS+150 +133.8 BAML/BNPP/FGB/JPM/MUFG/SG

 

 

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Fixed Income, People Profiles, Strike Price

2016 Wall Street Letter Award For Best Broker-Dealer Goes To

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If not as widely-covered as the GOP or DNC primaries, financial industry publication Wall Street Letter (“WSL”) held its 5th Annual Institutional Trading Awards ceremony last night at NYC venue 583 Park Avenue and recognized best-in-class broker-dealers across 7 major categories, including Best Broker Dealer (OverAll), Best Broker-Dealer Research, Best BD-Client Service and Best Broker-Dealer across equities, futures and options. The WSL Awards also recognized the firms considered to be the top within technology offerings, including electronic trading applications and electronic exchange platforms.

Taking home the gold for Best Broker-Dealer “Overall” :Wolverine Execution Services (WEX). Runners-up included Bloomberg Tradebook, Interactive Brokers, Mischler Financial Group and Dash Financial. Best Broker-Dealer Research was awarded for the third consecutive year to Mischler Financial Group, the industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans. Runners up in the Best Research category: Stifel Nicolaus and Sandler O’Neil.

Best Broker-Dealer Equities was awarded to Fidelity Capital Markets and  in the client service category BNP Paribas took the prize. Best Options Platform was awarded to Interactive Brokers and Best Options Broker was awarded to WallachBeth Capital.

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Ron Quigley, Mgn.Dir. Mischler Financial Group

Noted Mischler Financial Group Managing Director Ron Quigley, who accepted the award on behalf of his firm, “Its a great honor to even be considered as a contender for an industry award when considering the pedigree of the other great firms that were nominated. It’s always good to be in good company and its best to be recognized for capabilities.”

The full list of nominees and winners of Wall Street Letter 6th Annual Institutional Trading Awards is available via this link

 

marketsmuse debt market
Fixed Income, Global Macro Strategy, People Profiles

MarketsMuse 2016 Debt Market Outlook-The Caribbean Connection

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To kick off the 2016 debt market outlook, MarketsMuse fixed income curators are looking forward to the next Caribbean boondoggle, and in that spirit, we extend a shout out to Ron Quigley, one of the primary debt capital market’s top pulse-takers who also goes by the title Head of Fixed Income Syndicate for boutique investment bank, Mischler Financial Group, the financial industry’s oldest certified minority brokerdealer owned and operated by service-disabled veterans. Mischler was the 2014 and 2015 winner of the Wall Street Letter Award for Best Broker-Dealer Research, Quigley’s Corner is a bell-weather for the corporate bond market. Below comments come from the 04 January 16 edition of Quigley’s comments..

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Ron Quigley, Mgn.Dir. Mischler Financial Group

Expect a volatile year with today setting quite the tone to kick things off.  The Shanghai Index finished the session down 6.86% with the Shenchen off 8.2%.  A 5% plunge triggered first-time trading halt circuit breakers as panicked investors piled on sell orders further steepening declines.  The weaker yuan, manufacturing misses and the lifting of a ban on sales by major shareholders all combined to create a perfect storm for disruption on our first day back.

Taking back seat to China’s equity exchange turmoil was a critically important development in MENA in which Saudi Arabia officially cut all diplomatic and commercial ties with Iran. Saudi Foreign Minister Adel al-Jubeir requested the departure of delegates in diplomatic missions of the embassy and consulate and related offices within 48 hours. All flights to and from the Saudi Kingdom were immediately cancelled while Bahrain and Sudan joined in severing ties with Iran as well.  The Saudi’s move makes one think twice about the U.S.-Iran nuclear deal that will provide the cradle of Islamic Extremism with a cash windfall as sanctions are eased and assets up to $150 billion become unfrozen.  Let’s put that amount into proper perspective readers – that’s $25.7 billion MORE than the $124.3 billion the U.S. has given to Israel…..since 1948!

In reaction, the DOW opened down 400 points and as much as 467 intra-day – the worst start for the DOW in 84 years (1932) – and that, readers was all she wrote today for primary markets to decide to prudently stand down.  It should be noted, however, that the DOW was strong into the close gaining back 191 points.  We WILL revisit things tomorrow. Half a dozen issuers stood down today so if market tone is neutral overnight tomorrow could be a big day.

I couldn’t help but notice how many market participants and think tank experts talked about how those expecting a calm and quiet opening day to the New Year were in for a rude awakening today.  If you didn’t already know that this year was going to be highly volatile, then you might want to re-think your entire annual outlook.  There is nothing in the global landscape that should tell anyone otherwise.  Get used to days like today.

 

As one of my friends and former colleagues, who is also the author of 18 books on geopolitics and currently Senior Managing Director and Chief Economist at KWR International, Inc., Dr. Scott MacDonald exposed recently that there is a significant rise in holdings of Caribbean Banking Centers (CBCs).  Although record amounts of USTs have been issued, CBCs rank as the world’s third largest foreign holders of USTs behind Chinese and Japanese investors.  A close fourth place is occupied by the major oil exports namely Saudi Arabia, Qatari and UAE, etc. CBC’s are defined as the Dutch isles, Britain’s Caribbean territories, the Bahamas and Panama. What it spells are very high net worth individuals and families desperately searching for safe harbor investments.

 

CBC’s currently hold around $322 billion which is a new high. It was only $37 billion at the end of 2000.  The reasons are clear – global volatility is pushing investors into the flight to quality of U.S Treasuries compounded by the fact that the U.S. pays higher rates and with a much more palatable risk-to-growth proposition and a Fed that just increased rates last month for the first time in nine years while hinting at more. What it points to is a boat load of global market volatility and risk, aversion to a junk bond market that nearly saw its bottom fall out in late 2015, liquidity issues in corporate bond markets all on the back of our fragile and inextricably linked global economy that has lots of hotspots that can boil over on a day’s notice.  As Dr. Scott put it, “perhaps the Caribbean numbers point to the need to have your crash helmet ready for 2016.”

Germany reminded us of mounting economic woes facing the EU.  This morning, the engine that drives Europe posted disappointing consumer prices of 0.2% against 0.4% forecasts.  The ECB stands ready to print lots more funny money to bolster the faltering Union.  Given hammered commodity prices, oil at $36+ per barrel and severed ties between Saudi Arabia and Iran, it’s pretty clear to see that expectations for European inflation aren’t very realistic.

What’s Ahead for 2016?

Well, I can tell you we hope to see more deals, which in turn, will mean more deal drill-downs and wonderful Diversity & Inclusion stories.  Those go without saying.  However in the world of waxing poetic on all things geopolitical, I’ll have lots of opportunities when there is time to expound therein.  Here are merely some of the mounting stories, getting worse NOT better, that I’m sure we’ll hear about in the “QC” in 2016 and in no particular order:

  • Elections.
  • Spreading EU Nationalism.
  • France’s alliance with Putin Incorporated.
  • Potential superpower proxy war over Syria.
  • A MUCH worse Brazil than we saw in 2015…….which was pretty bad.
  • The ECB’s pursuit of its elusive 2% inflation target resulting in yet more stimulus.
  • The mounting debate and nervousness over a potential Brexit as the U.K. votes in June.
  • Expanding Terrorism organizations and more serious attacks to come to Europe and the world.
  • More intrigue in China’s expansion in the South China Sea and subsequent international friction.
  • Turkey in the EU?  Germany will gladly give Turkey what it wants to stem the flow of MENA immigrants into the EU.
  • Slow growth China and the mere “potential” of civil strife in a nation of 1.4 billion or 19+% of the global population.
  • Mounting Sunni-Shiite war throughout the Saudi Kingdom and Iran may push those two powers toward direct confrontation.
  • ……….and lastly but not least to all of us, the best story out there, namely the flight to quality into investment grade-rated U.S. Corporate bonds.
  • The EU Immigration fiasco, the Schengen Agreement and tightened/reintroduction of European borders – a weakening foundational issue to the success of the EU.

………..Stay tuned, she promises to be quite an unprecedented and dramatic year in many respects.

For the full edition of Quigley’s Corner 01.04.16, please click here

marketsmuse fixed income comment re SAB Miller deal
Fixed Income

MarketsMuse -Timing of ABIBB for SABLN Deal

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Guest Contributor and fixed income markets muse Ron Quigley, Managing Director of Fixed Income Syndicate for diversity firm Mischler Financial Group offers a Glass of Insight to the likely timing of the ABBIB acquisition of SABLN (AnheuserBusch proposed takeover of brewer SAB Miller). Below commentary is an extract from 15 October edition of Quigley’s Corner, the nom de guerre of daily debt market commentary distributed to Fortune 100 corporate treasurers, leading investment management firms, and the top fixed income deal bookrunners on Wall Street.

Timing of ABIBB for SABLN Deal

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Ron Quigley, Mgn.Dir. Mischler Financial Group

There’s been a lot of conjecturing as to the timing of the Anheuser-Busch InBev NV (A2/A) for SAB Miller plc (A3/A-) deal.  That should be expected.  After all, since SAB Miller accepted ABIBB’s s $106b takeover price on Tuesday, the buyer announced it will issue a corporate record $55b in debt to finance the takeover.  I have subsequently been asked by many what my thoughts on timing are so why not share them with you as well?

There is a six week window before Thanksgiving after which things begin to slow down although I think this year, the first two weeks in December will be more robust than in prior years.  Rates will be lower-for-much-longer and as we approach year end issuer’s will jump in to secure great financing before the busy start to 2016. Now, Anheuser-Busch InBev NV deal for SAB Miller plc regulatory hurdles could certainly slow down the $55b in ABIBB issuance until next year.  Recall that Carlsberg faced one year of regulatory harangues before it completed its takeover.  However, assuming $1.25 trillion in total 2016 U.S. Corporate issuance, or more, the transaction represents 4.4% of that volume!  Heck, we all find it hard to earn 4.4% interest on our own money!……Just to put 4.4% into the proper perspective.  In addition, can the current marketplace absorb $55b in issuance?  Today for example, many market participants were shocked at the relative absence of any IG primary calendar. Today’s session only hosted three issuers at a time when just yesterday we came off of the first back-to-back double digit billion dollar days for IG Corporate new issuance in five weeks dating back to September 8th thru the 10th!  As one market professional quipped to me this morning, “hey it’s free money for them (ABIBB) so they can do this anytime!”  No one can answer to the speed of regulatory hurdles but we all know when it comes to regulatory anything it means much more time.  In this case the takeover has to meet muster with global regulators.  For that reason alone we’ll see the deal print sometime next year.

The overall markets are also still very fidgety in here, although IG Corporate new issuance seemed to be moving in the right direction judging from the past two days and today’s session was especially impressive, albeit there were only three issues. There are concerns with IPOs not getting off the ground.  For that, I point directly to yesterday’s pulled IPO for Albertsons Cos.  In addition, First Data Corp’s lower than desired IPO priced at $16 vs. the $18 to $20 per share it sought and Neiman Marcus’s decision to wait on its IPO.  First Data’s $2.6b IPO was the largest of 2015 and nearly twice that of runner-up Tallgrass Energy’s $1.4b IPO last May.  Lest we forget that yesterday Wal-Mart shocked the investment community by forecasting a drop in 2016 earnings. Shares were pummeled down 10% and Q3 corporate earnings, for the most part, have missed with downward revised forward forecasts.

Dell Inc. (Ba3/BB+) also announced an up to $67b cash and stock deal to acquire EMC Corp. (A1/A).  Dell is heard to be planning a total of $45bn in debt to consummate the deal.  Net, net, not only ABIBB but Dell also stands to make billions from these deals so even “if” regulatory approval is unbelievably, almost unreasonably expeditious and the green light is given, both will leave big NICs on the table to get their deals done.  As for the banks and the respective fees they stand to garner before year end, should timing be sooner rather than later on both transactions, well………..it’s a no brainer for them folks.  The combined ABIBB for SABLN and Dell for EMC deals represent 8% of an entire year’s worth of IG Corporate issuance!  Digest that for a moment….Did you hear that?.CHA-CHING! How badly would investment banks love to have those profits on their 2015 books?

For the entire Oct 15 edition of Quigley’s Corner, please click here

Fixed Income, People Profiles

Corporate Bond Market-Balancing on a Knife Edge

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MarketsMuse Fixed Income Update “Corporate Bond Market- Balancing on a Knife Edge” is courtesy of extract from the 10.02.15 weekend edition of “Quigley’s Corner”, a daily synopsis of the investment grade corporate bond market and rates trading space authored by Ron Quigley, Managing Director of investment bank and institutional brokerage Mischler Financial Group, the financial industry’s oldest and largest minority brokerdealer owned and operated by service-disabled military veterans. Mischler Financial was selected in 2014 and again in 2015 for the Wall Street Letter Award “Best Research-Brokerdealer”

Ron Quigley, Mgn.Dir. Mischler Financial Group
Ron Quigley, Mgn.Dir. Mischler Financial Group

Blackouts couldn’t be more optimally timed as we experience massive re-pricing in our IG primary credit market.  The corporate black-outs are serving as an unplanned, well-timed inherently built-in “kick-the-can” that is necessary in helping us to all buy time as we navigate thru what is perhaps the most unpredictable, treacherous, volatile and uncertain time that our primary markets have experienced since 2008.  As one very senior syndicate source told me “the credit markets are sitting on a knife’s edge.” IG spreads are on the whole 44 bps wider at the end of the third quarter according to Morgan Stanley.

Today’s notoriously and unexpected poor employment data was the last thing credit markets needed and it has instigated a massive Treasury rally. Perhaps this is a bit of good news because when both are combined, is a potential high velocity tailwind to credit products from big government bond funds.  However, that’s “if” funds want to own credit product and hold it for an extended period of time and potentially wear a negative mark-to-market.

Having said that, the guy-in-the-corner suggests that at some point this weekend, you should put on your favorite song and sing along to it after many shots of tequila.  When you get to the point of feeling bad, look at yourself in a mirror and realize that you can begin to feel better with coffee, food, sleep and time but come Monday morning the business model you are used to is about to change.  Not adapt; not get better; rather change. The trends in the credit markets that we have seen over the last two quarters are showing no signs of abating, and in some degrees, worsening.

Now please let me introduce the moment you’ve been waiting for..

Syndicate Forecasts and Sound Bites from “The Best and the Brightest!”   

I am happy to report that once again the “QC” received unanimous participation from all 23 syndicate desks surveyed in today’s Best & Brightest polling.  That includes all of the top 22 ranked syndicate desks according to Bloomberg’s U.S. IG U.S. Investment Grade Corporate Bond underwriting league table that can be found on your terminals at “LEAG” + [GO] after which you select #201 (US Investment Grade Corporates).  Their cumulative underwriting percentage is 94.00% of YTD IG dollar debt underwriting which simply means they’re the ones with visibility.  But it’s not only about their volume forecasts, rather it’s also about their comments!  This core syndicate group does it best; they know best; so they’re the ones you WANT and NEED to hear from. 

*Please note that these are Investment Grade Corporates only. They do not include SSA issuance unless otherwise noted.

The question posed to the “Best and the Brightest” early this morning was:

“Good morning! So, this week the massive repricing in primary markets saw average NICs bust out to 54.23 bps; bid-to-covers shrank to an average 2.02x; today’s numbers were BAD; Obamanomics is quite the engine of growth and job creation, China’s slowdown is showing up in our data (ISM Milwaukee posted its worst manufacturing number since the dot com bubble). Spreads are wider on today’s data to start. Lower-for-longer might just be lower forever!  The two-part question for today is what are your volume forecasts for IG Corporate supply for BOTH next week AND October?  It’s going to be challenging to nail that down but it’s an important survey at this critical juncture.  Many thanks, Ron” 

……and here are their formidable responses: Continue reading →

Fixed Income, Global Macro Strategy, People Profiles

Fixed Income Fix: Fed Data and Wall Street’s Hadron Collider

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Messing With Data aka When “Art” Smashes into “Science” in Wall Street’s Version of the Hadron Collider

MarketsMuse Fixed Income update comes consequent to the Fed’s June 5 release of Employment Data, and below is courtesy of extracted comments delivered to institutional clients of Mischler Financial Group under the banner “Quigley’s Corner” and authored by Managing Director Ron Quigley,  Head of Fixed Income Syndicate for the securities industry’s oldest and largest minority firm owned and operated by Service-Disabled Veterans. Mischler has been awarded “Best Research-BrokerDealer” for the past two years by The Wall Street Letter.

Ron Quigley, Mischler Financial
Ron Quigley, Mischler Financial

The large Hadron Collider in Geneva’s CERN Institute or the European Organization for Nuclear Research took ten years to build.  It’s the largest single machine on our planet. 10,000 scientists worked on it from 100 countries.  Talk about diversity and inclusion!  It rests as deep as 825 feet underground and its circumference is 17 miles. It was created, in essence to help find answers to questions that have bugged mankind like “where do we come from?” or “How was the universe started” among many others.  CERN hires roughly 90% of the world’s particle physicists otherwise known as the smartest people on earth.  My late father-in-law was its director and worked there for over 40 years. They are exacting people, detail oriented and with no room for error.  Which leads us into today’s Op-ed concerning U.S. economic data and its vast differences but equally important impact in today’s inextricably global-linked world economy.  Like the circular Hadron collider – what goes around comes around. So, what happens with rates, the EU, Greece, China and Ukraine, terrorism and/or Nationalism can all have an explosive domino effect.  Given that our current rate situation seems tenuous with equally profound global ramifications, I thought the analogy appropriate. Continue reading →

Fixed Income

Investors Take a Big Bite Of Apple Inc Debt Issuance-And Love It; MarketsMuse

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MarketsMuse Fixed Income update profiles Apple Inc latest bond issuance courtesy of late afternoon desk notes distributed to institutional clients of deal co-manager Mischler Financial Group, the financial industry’s oldest and arguably largest boutique Finra member firm that is owned and operated by Service-Disabled Veterans. MarketsMuse Editors are compelled to add at the outset: The term “Service-Disabled” is a terrible misnomer that the US Dept of Defense should consider changing.

The vast majority of these veterans are ‘disabled’ only within the construct of the certification that is awarded to members of the military who were injured in the line of duty and since relieved from serving in active duty roles. Without discounting the sacrifices that so many veterans have made while serving in our military, sacrifices that have permanently altered their lives and those of their families consequent to truly debilitating injuries sustained, thousands of veterans who were injured in one way or another and who have since returned to the workforce have proven time and again that they are not only fully-able, but they are 110% “mission capable” and “mission ready” whenever provided the opportunity to demonstrate their trained skills and talents within private sector roles.

Moreover, SDVs can be found in leadership roles across the Fortune landscape, including CEO, CFO and corporate treasury positions at the world’s leading companies. We make note of this because the world’s most recognized company, Apple Inc. made the same note of this when appointing Mischler Financial to serve within the ranks of today’s cast of underwriters who helped bring this $8 billion, multi-tranche bond deal to the institutional investor marketplace. Without further ado, below is a short extract from Mischler’s nightly edition of debt capital market commentary, “Quigley’s Corner”

Ron Quigley, Mischler Financial
Ron Quigley, Mischler Financial

Two mega deals hit the tapes early this morning led by an $8b 7-part from Apple Inc. and a $10b 6-part from Shell International Finance.  There were a total of 8 IG Corporate issuers that tapped the dollar DCM to price 20 tranches totaling $21.525b bringing the WTD total to more than 14% more than the syndicate midpoint forecast or $45.125b vs. $39.34b.  Meanwhile, the Kingdom of Sweden also added $2.25b from the SSA space with a new 3-year bringing the all-in IG day totals to 9 issuers, 21 tranches and $23.775b.

New Record: Quickest In History to the Half Trillion Dollar Mark!

Today marks a landmark in the history of IG issuance – It is the earliest time in any year that we reached the $500 billion issuance mark.  YTD IG Corporate-only volume now stands at $510.797 billion! Investor appetite for the stability of higher rated credits and especially those from Corporate America is beyond robust. Congratulations to Apple for their help in putting us on top with this new and very impressive record!  Well-timed and well-priced no doubt!  YTD all-in IG issuance (Corporates plus SSA) is now $634.407 billion.  Not too shabby folks!

Investor’s Bite the Apple – And Like It Alot! A Look at Today’s 6-Part Demand

Apple Final Book Sizes Bid-to-Cover Rate Final Pricing Currently Trading
2yr FRN 590m 2.36x 3mL+5 issue bid
2yr FXD 2600m 3.47x +30 30/28
5yr FRN 840m 1.68x 3mL+30 $100.05/
5yr FXD 2900m 2.32x +45 44/42
7yr FXD 2900m 2.32x +75 75/73
10yr FXD 5850m 2.925x +100 99/97
30yr FXD 5300m 2.65x +140 141/139

A redacted version of Quigley’s Corner, including a synopsis of the day’s investment grade corporate bond market activity is available via Mischler Financial Group’s website.

Fixed Income, Global Macro Strategy

Convergence of Credit Markets and GeoPolitics-Its All Greek This Week

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MarketsMuse.com Fixed Income Fix update is courtesy of extract from 06 April commentary from Mischler Financial Group’s “Quigley’s Corner”, Wall Street Letter’s 2015 winner of “Best Research-BrokerDealer.”

How Low Will Greece Go?

Ron Quigley Mischler Financial
Ron Quigley
Mischler Financial

When one broaches the subject of German war reparations, it opens up perhaps modern civilization’s most sensitive human drama to one-sided debate.  But when the cries come from the Hellenic Republic, it also points to an audacity on the part of Greece to hold back nothing for money.  Is it a callous, cowardly blackmail of Germany or is it an appropriate claw-back provision?  You be the judge, I am merely putting it out there.  Last March, Alex Tsipras accused Germany of reneging on World War II compensation owed his nation by Germany which occupied his country from the year 1941 thru 1944.  Angela Merkel’s office reiterated several times that Germany had made good on those payments – end of story!  Clearly a case to stir up emotions against Germany and to garner support from laggard nations like France and Italy to secure additional financial recompense and negotiation leverage for the nearly bankrupt Greece.  Continue reading →

Fixed Income

Rate Outlook: This Fixed Income Expert Says: “Lower For Longer”

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MarketsMuse update courtesy of debt capital markets desk notes distributed to clients of boutique brokerdealer Mischler Financial under the banner “Quigley’s Corner”. Mischler Financial, the financial industry’s oldest and largest minority firm owned/operated by Service-Disabled Veterans received the 2015 Wall Street Letter Award for Best Research/BrokerDealer.

Ron Quigley, Mischler Financial Group
Ron Quigley, Mischler Financial Group

Well, it’s finally Friday and every Friday is a Good Friday!  So, let’s take a look back at the amazing week the investment grade corporate debt market has just concluded.

  • This week was the second busiest in history for all-in IG volume (Corps+SSA) at $65.03b.
  • It is now the fourth busiest all-time as measured by the number of individual tranches priced for all-in IG Corporate plus SSA issues with 63tranches priced.
  • In terms of IG Corporate only supply the week’s  $54.03bn ranks 5th all-time in that category.
  • Market tone remains firm with CDX IG23 at a new low this morning of 60.12.
  • The DOW and S&P are hovering around all-times highs both set this past Monday.
  • Deals are performing well, NICs remain skimpy averaging 3.16 bps across this week’s 59 IG Corporate-only prints and demand is very strong with those 59 issues averaging a 3.55x bid-to-cover rate.
  • The U.S. NFP number was upbeat blowing by estimates or 295k vs. 235k and the EU will be purchasing assets launching EU QE as early as Monday’s session.
  • The average spread daily compression across today’s 59 IG Corporate-only new pricings was 16.28 bps from IPTs to the launch.
  • Spreads across the 4 IG asset classes are an average 21.00 bps wider versus their post-Crisis lows and versus 23.50 last Friday or 2.50 bps tighter on the week!
  • Spreads across the 19 major industry sectors are an average 25.32 bps wider versus their post-Crisis lows and versus 28.21 bps last Friday or 2.89 bps tighter!
  • BAML’s IG Master Index was unchanged at +131 versus yesterday but 6 bps tighter versus last Friday’s +137 although rebalancing took place thanks to Petrobras being dropped due its high yield rating.
  • Standard & Poor’s Global Fixed Income Research was at +171 versus +173 one week ago or 2 bps tighter.
  • Taking a look at the secondary trading performance of this week’s IG and SSA new issues, of the 63 deals that printed, 51 tightened versus NIP for a 81.00% improvement rate while only 4 widened (6.50%), 7 were trading flat (11.00%) and 1 was not available (1.50%).

Continue reading →

Fixed Income, Global Macro Strategy

Fixed Income Guru Says This About Interest Rate Outlook-

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ron quigley
Ron Quigley, Mischler Financial Group

MarketsMuse fixed income fix for Feb 5 is courtesy of Industry Veteran and debt capital markets guru Ron Quigley, Managing Director and Head of Fixed Income Syndicate for Mischler Financial Group, the sell-side’s first and foremost investment bank/institutional brokerage boutique that is owned and operated by service-disabled veterans.  Mr. Quigley is also the author of “Quigley’s Corner”, a daily debt capital market commentary distributed to 1000+ Fortune treasurers, investment managers and public plan sponsors.  Mischler Financial Group is the winner of the 5th Annual Wall Street Letter Award for “Best Broker-Dealer/Research”

The Guy-in-the-Corner’s Take on Interest Rates (Feb 4 Quigley’s Corner)

So, I was asked by a Senior Managing Editor of an anonymous multi-billion dollar global financial news operation for my thoughts on interest rates. When I began my response to him, it just seemed to continue as there are so many factors that influence that discussion. My response turned out to be a feature unto itself so without further ado, I thought I’d feature it in today’s “QC.”

As concerns your question about how recent jumbo deals (think “Apple”) have raised speculation of interest rates rising, there is a POV out there claiming issuers are quick to print in anticipation of higher rate action. I, however, lean the other way…….FAR the other way and here’s why:

I have always been a proponent of “lower-for-longer”. Yellen added language in her last minutes flagging the EU as a potential impact on keeping U.S. rates lower. In the prior minutes, she didn’t mention the EU at all (which I thought was egregious not to at least mention the worst and most impactful economic story on our planet).

o On any given day a slew of news would be headliners in their own right. Aside from MENA unrest and the dramatic ISIS killings and impact in the world’s most sensitive hotbed – MENA – there are myriad factors that can all impact our rate environment:

o The Swiss National Bank’s action to remove its cap with the euro is a red flag or bad sign to the markets. It means the Swiss (unknown for surprises and bastions of stability) do not like what they see in on the horizon for for the EU. Did someone say “currency wars?” Remember history and NEVER forget it. We are dealing with severe currency volatility between the USD, EURO, YEN et al. These are reminders of the economic dislocation circa the 1930s……and we know what that led to. Continue reading →

ETF News, People Profiles, Strike Price

New High For $SPY Despite Mixed Market Signals; Corps Issue $20 Bil In Debt So Far This Week..and, its Only Tuesday !

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MischlerLogo Nov 2012Refreshing Market Commentary courtesy of Ron Quigley, Mgn.Dir./Head of U.S. Syndicate Desk & Primary Sales for Mischler Financial Group.

With Washington in full-out gridlock, Americans should be turning to the best national news, namely corporate profits.  Corporations are driving the resurgence in equity markets posting overall fabulous earnings.  The flight to under-owned equities has also helped the DOW reach what today represented a new all-time high when it screamed past the previous record high of 14,164 set back on October 9, 2007 at the open.  The DOW closed today’s session at 14,253 or 89 points above its previous record.  The S&P meanwhile, is closing in on its all-time high of 1,565 also set on October 9, 2007, sitting a mere 26 points away ending the session at 1,539.

Today’s pair of economic data releases conveyed a mix message about the shape of the U.S.A.  On one hand, the Institute for Supply Management’s (ISM) Non-Manufacturing Business Survey painted a bright picture indicating that segment of the nation’s economic activity grew for the 38th consecutive month.  It was the highest such reading since the 56.1 registered in February of 2012.  Construction is showing some signs of improvement as are financial and insurance companies among others.  However, in the push-me/pull-you that characterizes much of the data we see, today’s Economic Optimism Index dipped by 5.1 points versus the prior while remaining over 5 points behind its annual average.  Readings above 50 point to optimism, below it – pessimism.  The Index is comprised of three component parts namely, a six-month economic outlook, a personal financial outlook and confidence in federal economic policies.  All three categories posted declines. This month 60% of respondents indicate they believe the economy is in a recession.

So there it is…..more contradictory information to make our day a little brighter.  Heck, my barometer of optimism is if I get all my work done in one day, can start from a clean slate the next and read a bed-time story to my six year-old daughter well then, things are looking good.

On another note, Hugo Chavez is dead and you all know what that means……..you can now go ahead and buy gas at your local Citgo station.  Pleasant driving people!

Here a re-cap of today’s economic data releases: Continue reading →

People Profiles

“QE3 Slated for August, the EU World Will Not End, China Could Hit a Wall

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Market commentary (excerpt of July 25 desk notes distributed to institutional fund managers) courtesy of  Ron Quigley, Managing Director/Head of Fixed Income Syndicate for Mischler Financial Group. While not ETF-centric per se, its a good read!

Ron Quigley

Tonight we’re taking a bit of a reprieve from the standard dire EU news by delivering quite a different opinion of where the world’s headed.  It’s great intelligence from one of my very senior source relationships on the street.  It’s sure to get your attention whether you are Treasury/Funding, Syndicate, buy-side accounts, public service commissions or senior bank administrators……

Blackstone has it’s prognosticator in Byron Wien.  You’ll recall his recent blog in which his trusted source forecast an end-of Europe.

The “seer” was referred to only as “the smartest man in Europe”. Generally speaking Wien has often quoted his brilliant, worldly and wealthy oracle for the past decade.  Unfortunately after much digging, our only profile of Wien’s “source” is that he is 90 years old, owns a Bentley, a private jet and lives in one of the Cote d’Azur’s three “Caps” which would pin-point him in either Cap d’Antibes, Cap d’Ail or St. Jean Cap Ferrat.

One would think that should pretty much be a giveaway but if you know anything about the French Riviera there are many wealthy old people who would fit-the-bill.  Today, our intelligence comes from a very respected international banker at one of the world’s largest financial institutions.  We could also characterize the person as “brilliant”, “worldly” and “wealthy” but we prefer to pitch the person as much more down-to-earth….as he would want.  There is certainly no hot-air here and substantive macro insights.

Here are the take-away’s straight from our “source’s” mouth.  We hope it’s revealing and helpful:

Continue reading →

ETF News, People Profiles

Markdown in MuniBond ETFs: Discount Pricing

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ETF Trends’ Tom Lydon makes a poignant observation when pointing out that MUB , iShares S&P National Municipal Bond Fund ETF is continuing to trade at a discount to its NAV, which for some, is a disturbing bearish signal.

While ETF “discount trading” is not necessarily unusual in and of itself, prolonged disparities (i.e. for more than a brief snapshot in time) often infers a bearish sentiment.  When counting the growing number of municipalities raising their hands for more help and the loom of local financial crisis episodes remains large, its no wonder that the bears are growling.

That said, Ron Quigley, head of fixed income syndicate for Mischler Financial Group was alone last week when he said:        “.. The Federal Reserve Bank said today they’d leave rates at “current low levels through 2014” which simply means that as the economy grows and inflationary fears increase, the long end of the curve will rise.  A steeper yield curve will expedite the process by which the banking system recapitalizes, thus encouraging banks to deploy their excess capital and profits into even more SMEs and consumer lending to fuel more growth

Whichever economic analyst camp you prefer to reside in, MUB’s technical chart is decidedly bearish at the moment. Click on the image to read Tom Lydon’s perspective.

Chart Courtesy of ETF Trends
ETF News, People Profiles

Fixed Income ETF Fans Tune In Here

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It’s a big bowl of alphabet soup when it comes to quenching your appetite for fixed income ETFs. On today’s menu you’ll find that a small smorgasborg of just these alone will get you through the first of several courses: EUO, UUP, ELD, XLU, IDU.

Ron Quigley

There’s not enough room right here to go into further discussing which of the above fixed-income-flavored ETF(s) will work best, it all depends on which US or geopolitical scenarios you’re trying to feed into. That said, what Ron Quigley says –he’s Mischler Financial Group MD & Head of Fixed Income Syndicate– pretty much sums up what every primary market players’ perspective is this week: “Its good to be selling bonds!!”

Multi-Currency, Sovereign..Utilities..You name it, and the new issuance market says “they’re buying it!”

Reprinted without permission, here’s a 2 paragraph excerpt from tonight’s missive from Quigley to his institutional fixed income patrons:

“..With Consumer Confidence reaching a four-year high coupled with the Greek PSI close to achieving a 85% to 90% participation rate, issuers rode market momentum into what was another prolific day for primary markets.  In total, 11 issuers tapped the dollar markets pricing 16 tranches totaling $8.17 billion.  Thus far the weekly total is $48.55 billion, already placing it as the 3rdbusiest week in history!  With two days left to go, the record of $52.5Bil record may fall.  Among today’s diversified group of issuers were two regulated utilities for Southern California Edison and Consolidated Edison….”

You’ll want to contact Ron directly to see his complete market updates..And, you’ll want to dig into the latest market data behind the above-noted tickers to get the fix you’re looking for.