In this note, we update ourAugust 12 study with more evidence of whether or not there is a funding advantage for the “too big to...
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Mortgage Servicing Rights Values Close Mixed for the Week as Current and Forward Mortgage Rates Drop 0.03%
Kamakura Corporation projections for U.S. Treasuries and fixed rate mortgages this week show that the implied forward yields for...
Five of Seven Regional Banks Trade at Credit Spreads Better than the Too Big to Fail Banks
In this note, we present some initial evidence of whether or not there is a funding advantage for the “too big to fail banks.”...
Kinder Morgan Energy Partners Leads the 20 Best Value Bond Trades with Maturities of 10 Years or More
We last ranked the best value 10 year fixed rate corporate bond issues on August 4, 2014. Today we rank the best value corporate...
Measuring the Funding Costs of the Too Big to Fail Banks: The U.S. Dollar Cost of Funds Index™
Measuring the marginal cost of funds for a financial institution is a critical calculation from both a management perspective...
Forward 1 Month T-Bill Rates Plunge 0.26% in 2 Years but Forward 10 Year U.S. Treasury Yield Drops Only 0.04% from Last Week
Long term implied forward 1 month Treasury bill rates more than reversed last week’s increases, plunging this week at...
Credit Spreads and Default Probabilities: A Simple Model Validation Example
One of the most persistently used formulas in fixed income markets is the relationship Credit Spread = (1 – Recovery...
Vodafone Group PLC: Default Risk is Down Sharply But Value Ranks in the Bottom 10% of Bonds
We last reviewed Vodafone Group PLC (VOD) on April 15, 2014. Since then, the European Commission has approved Vodafone Group...
American International Group Inc. Bonds: A Reward to Risk Ratio Twice as High as the Median Bond Issue
American International Group Inc. (AIG) was one of the largest beneficiaries of U.S. government supportduring the credit crisis,...
AT&T Inc. Bonds: Ten Times the Risk of IBM and Below Average Value
We last reviewed AT&T Inc. (T) on April 23, 2014, prior to its announcement that it intends to acquire DirecTV (DTV). In...
International Business Machines: An Updated Bond Market Ranking
International Business Machines Corp. (IBM) and Apple Inc. (AAPL) announced on July 15, 2014 that they would work together to...
Transocean Ltd. Bonds: High Risk, Low Return
Transocean Ltd. (RIG) helps customers find and develop oil and natural gas reserves. On July 15, Transocean Ltd.’s fully...