Vital Statistics:
| Last | Change | Percent | |
| S&P Futures | 1403.9 | 5.7 | 0.41% |
| Eurostoxx Index | 2471.7 | 19.0 | 0.77% |
| Oil (WTI) | 103.52 | 0.7 | 0.72% |
| LIBOR | 0.4682 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 78.81 | -0.376 | -0.47% |
| 10 Year Govt Bond Yield | 2.15% | -0.01% | |
| RPX Composite Real Estate Index | 170.13 | 0.4 |
Markets are higher this morning on no major news except for the increase in the European firewall. There is probably an element of end-of-the-quarter window dressing to it as well.
Personal Income came in +.2%, lower than expectations, while Personal Spending increased .8% higher than expectations. Inflation data came in as expected. Overall, no reaction in the futures. Chicago Purchasing Manager, Michigan confidence, NAPM, and some revisions are coming out later this morning.
The NYT notes that Moody's may lower the credit ratings for B of A, Citigroup, and Morgan Stanley in mid-May. The side effect of this downgrade would be to kill their derivatives businesses, as the lower rating will force them to put up much more collateral against their derivatives books, and force many large buy-side clients to trade elsewhere. This could be the impetus to turn Citi and B of A back into plain old commercial banks.
Goldman is raising money for a new fund to buy distressed home loan bonds without government backing. The documents state this is a bet on improving fundamentals in U.S. housing. The story also goes on to say that Goldman bid on mortgage bonds from AIG in a Feb 8 auction, and decided to hold the merchandise instead of selling it. Most of these bonds are trading in the 50s. Non-agency MBS have done well this year as credit conditions have eased - enough that some funds are paring their bets.
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