Don't get me wrong spy, I am not in support of the Fed's policy actions and I am positioned to benefit from any action combating price inflation.Today is the FIRST day that the fixed income market has **started** pricing in a rate increase. It remains that the Federal Reserve follows the market though and we should continue to monitor developments there rather than listening to the banksters yap.
36 bps for the first day isn't that bad, D? :D
Best plays for the rate hike Spy?SMN, short the commodity complex..anything else?
I think FRE and FNM actually will go up from here, definitely in coordination with gov't (advance information) in which they are basically short Duration on the bond so that higher rate translates to profit. I would consider covering my put/short on GSEs right now. Short IBs (LEH, C, GS, MS) as well as FED and DSL is perfect. SMN is right there and just waiting for the f'king MON POT momo crowd to be completely isolated from reality then party can begin.
Apparently, the debt investors left for the Hamptons early this year. After burning through the first tank of gas in the Cayenne Turbo, MD "Joe Fixed Income" hit the gas station. After paying $5 for premium, the turbo boost capabilities were tested as Joe sped back to the estate, calls were promptly made to the trading desks this morning. Club Med also called in sick from the baccarat tables in Monte Carlo to phone the city. Change tack!:)
I have been shorting RYL since $32-34 and I think the reckoning in NEW home builders are obviously at hand.
How good is your source good on the GSEs being short duration?
That news has just been leaked. In some ways I cut my teeth there and people I know thinks like me, so I am 99.9% sure they are on the right side of the fence today.
Anyone else think Ben will join or preempt an ECB quarter point July move, and then telescope for more, while the ECB holds?
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