There are a few stories in the financial sector to mention in light of no economic data today.
Mike Mayo, bank wizard, is noting in a report that the bank sector will continue to struggle; he specifically notes that loan prices (at the very top of the capital structure) are still priced too high. If you're a Calyon client (which I am not) make sure to get a copy to read...and send one to me when you're done.
There's an article in the FT noting what many have already felt.....wide bid/ask spreads and healthy client volumes are good for the banks/brokers. In addition, most of these entities have a little bit more wiggle room with their marks given the recent FASB ruling (noted earlier).
I don't think the IR folks are Lincoln National are particularly enamored of the WSJ today after their article citing pending liquidity issues.
Credit traders are likely focused on Wednesday's launch of the new fixed coupon CDS protocols. I suspect that this will dampen volumes as most proceed carefully.
Those very same credit traders will also likely commiserate with bond traders in other sectors about the recent draconian pronouncement from SIFMA that the number of early closes due to holidays is being reduced.
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