Bond Outlook April 16th

The moderate optimism that we expressed last week, to the effect that the shift to a rebalanced economic world could be managed in an orderly fashion, seems justified by recent developments. In particular we can report that the fixed income markets are functioning more smoothly. Bid and offer prices are now pretty much available, although actual prices are still different from screen prices. Even our “bête noire”, structured products like CMS (Constant Maturity Swaps), have a price.