Tuesday, May 31, 2011

IG16    90   -3/4
HY16  102 1/4  +1/4

SOVX  196  -5
MAIN   102 1/4   -2 1/4

Markets stronger across the board on rumors of a new Greek bailout.  Having said that, the market response seems reasonably muted.  SPX is only up 1% and SOVX only 5 tighter.  Either people are doubting the rumors (which seems unlikely) or people already expected some form of bailout and these rumors do nothing to truly fix the longer term problems.

Friday, May 27, 2011

G8 and the Long Weekend

Markets have rallied a little bit as we head into the G8 meetings.  It is likely that we will hear positive noise about global government co-ordination and support for economies.  That can lend a little support to the market, but is unlikely to do anything significant. 
Volatility is increasing as the intra-day swings are getting larger again even if the closing changes aren't very big.  Greece remains the big headline generator.  It looks like the issue will be pushed to the brink before everyone caves in and kicks the can down the road.  I think that 'brink' is still a couple of weeks away, so have a short bias for a bit.  More economic data due out.  The market has been resilient in the face of weak data, but that has gone hand in hand with increased QE3 chatter.


Sovx   198   unch
MAIN  103  unch

IG16     90.50  unch                          LQD   111.33
HY16    102.125  unch                     HYG      91.87