LOM News
02/13/09 - LOM Asset Management will launch a new Euro Fixed Income Fund on February 26th, 2009 12/03/08 - LOM Securities Cayman Ltd. Receives Cayman Islands Chamber of Commerce Corporate Citizen Award 1/21/09 - LOM's Bermuda office has repaired the telephone outage, you should be able to get through without any problems
Volatility Abounds in a Thin Summer Market!
by: David Barker, Head Trader, LOM
Good Morning!
With juniors manning the trading desks during the summer months as most “real” dealers are on vacation, it is unsurprising to see whippy volatile swings in all major markets. This has been exacerbated by the events of the last six months and continued confusing posturing by government officials.
Global bonds have suddenly caught a bid as ECB indicates that last week’s rate hike was likely a one off occurrence. It is truly amazing how markets that were so heavily focused on global inflationary concerns not a week ago, can suddenly throw all that consideration to the wind and conclude precisely the opposite of what they had spent 2 months fretting on.
The dollar has fairly maintained its recent ranges against the Euro but seems to have taken a more positive tone versus the Yen and astonishingly the Canadian dollar. From a medium term perspective, there seems to be little impetus to push the greenback one way or another and the unit has become a byproduct of cross trading.
Global equities remain under pressure as US indices have crossed the magic 20% threshold into bear territory. Yesterday’s news that Government Agencies (Fannie May and Freddie Mac) my need to raise as much has $75 Billion to meet the new Fed capital requirements led traders to ask the “How” and “When” questions. Result, the two former bastions of security were marked down a further 15% and are now trading at levels not seen in some 14 years.
With juniors manning the trading desks during the summer months as most “real” dealers are on vacation, it is unsurprising to see whippy volatile swings in all major markets. This has been exacerbated by the events of the last six months and continued confusing posturing by government officials.
Global bonds have suddenly caught a bid as ECB indicates that last week’s rate hike was likely a one off occurrence. It is truly amazing how markets that were so heavily focused on global inflationary concerns not a week ago, can suddenly throw all that consideration to the wind and conclude precisely the opposite of what they had spent 2 months fretting on.
The dollar has fairly maintained its recent ranges against the Euro but seems to have taken a more positive tone versus the Yen and astonishingly the Canadian dollar. From a medium term perspective, there seems to be little impetus to push the greenback one way or another and the unit has become a byproduct of cross trading.
Global equities remain under pressure as US indices have crossed the magic 20% threshold into bear territory. Yesterday’s news that Government Agencies (Fannie May and Freddie Mac) my need to raise as much has $75 Billion to meet the new Fed capital requirements led traders to ask the “How” and “When” questions. Result, the two former bastions of security were marked down a further 15% and are now trading at levels not seen in some 14 years.
