HALISTER1: Fed’s Gradual Path Leads TD to Recommend 5s30s Flattener Trade

Fed’s Gradual Path Leads TD to Recommend 5s30s Flattener Trade

(Bloomberg) -- Fed’s commitment to gradual pace of rate increases and portfolio run-off should pressure belly of the curve relative to the long end, TD strategists Priya Misra, Gennadiy Goldberg, Cheng Chen said in note.  
  • “We fade the recent steepening of the 5s30s curve” and see imminent shift in ECB policy as “largely priced in”
    • TD initiates 50k DV01 of 5s30s flatteners at 102bp, targeting 93bp, with a stop loss level at 107bp
  • Biggest risks to the position would be a weak CPI print Friday, which could slow market-implied pace of Fed hikes, and a further sell-off in bunds, which would push long end of global rates higher
To contact the reporter on this story: Vivien Lou Chen in San Francisco at vchen1@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Mark Tannenbaum

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Cheng Chen (TD Securities USA LLC)
Gennadiy Goldberg (TD Securities USA LLC)
Priya Misra (TD Securities USA LLC)

Topics
First Word Credit Asia
First Word Credit Europe
First Word Credit US

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283

HALISTER1: Province of Alberta - DBRS Rating Report

Province of Alberta - DBRS Rating Report

Alert: HALISTER1
Source: DBR (Dominion Bond Rating Service)

Tickers
2026Z CN (Province of Alberta Canada)

People
Eric Beauchemin (DBRS Ltd)
Grant Headrick (DBRS Ltd)
Travis Shaw (DBRS Ltd)

Topics
Fixed Income Research
Prov., Reg. Credit Research
Credit Analysis Research
Credit Research
Investment Research

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283

HALISTER1: CPS Auto Receivables Trust 2017-C - DBRS Presale Report

CPS Auto Receivables Trust 2017-C - DBRS Presale Report

Alert: HALISTER1
Source: DBR (Dominion Bond Rating Service)

People
Chris Donofrio (Dbrs Inc)
Chris O'Connell (DBRS Inc)
Christopher D'Onofrio (DBRS Inc)

Topics
Fixed Income Research
Reports
Credit Analysis Research
Credit Research
Investment Research

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283