Market information

Friday, January 15, 2010

Rating agency Moody's decided to upgrade the status of governmental bonds of 39 emerging markets. Bonds coming from these countries used to have a 'junk' status. Everything below a BBB- rating is classified in this category. Institutional investors are often not authorized to invest in these risky high yield loans. With the increase of the credit rating of these governmental bonds it is now possible to invest in such obligations.

Banks are looking for more long-term savings. This is caused by the expectation of banks that the ECB will increase the refinancing interest. As a consequence, a shortage will arise on the money- and capital market. The funding costs of banks will increase because of that. To prevent this in the future, Rabobank already issued a ten year bond with a face value of €3,5 billion against an interest rate of 4,125%.

This month, the yearly figures of some large financial institutions will be published. Today, JPMorgan presents their results. It is expected that profit and bonusses will be back to the level of the years 2006 and 2007. Next week, among others, Goldman Sachs will follow.

The 6M Euribor stayed the same at 0,98%. The 10Y Swap dropped 2 basispoints to 3,49%.

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: .(JavaScript must be enabled to view this email address)

Download market data