Moody's, McGraw-Hill Short Interest Rose in July on Subprime Debt Crisis

(Bloomberg) -- Short interest in shares of Moody's
Corp. and McGraw-Hill Cos. jumped in the past month, a sign
investors are betting the companies' credit-rating divisions will
be hurt as losses from subprime mortgages curb new bond sales.

The short interest on New York-based Moody's was 23 million
shares in early July, up 28 percent from early June, according to
data compiled by Bloomberg. Short interest on McGraw-Hill, owner
of Standard & Poor's, rose 7.8 percent to 6.3 million shares.


Read more at Bloomberg Bonds News

Subprime worries quickly reshaping rate ideas

(Reuters) - Short-term interest rate futures, which measure market expectations of likely Fed policy, jumped on Tuesday after Standard & Poors said it might cut $12 billion in debt tied to subprime mortgages.




Rival Moody's Investor Services later said it had cut ratings of 399 mortgage-backed securities and was eyeing downgrades on another 32.


Read more at Reuters.com Bonds News

Canada's Dollar Rises From Three-Week Low on Rate Increase Expectations

(Bloomberg) -- The Canadian dollar rebounded from a
three-week low on expectation the Federal Reserve will remain on
hold while the Bank of Canada may raise the borrowing costs
twice this year.

The Canadian dollar advanced a day after a slower-than-
forecast retails sales growth prompted the currency's biggest
loss in eight months. The yield gap between 2-year Canadian
government bonds and similar-maturity U.S. Treasury notes at
stood at 28 basis points, or 0.28 percentage point, near the
lowest since January 2005. Shorter maturities are most sensitive
interest rate change.


Read more at Bloomberg Currencies News

US STOCKS-Home Depot, Morgan Stanley lead early gains

(Reuters) - Shortly after the opening bell, the Dow Jones industrial
average was up 6.10 points, or 0.04 percent, at
13,641.52. The Standard & Poor's 500 Index was up 1.05
points, or 0.07 percent, at 1,534.75. The Nasdaq Composite
Index was up 5.44 points, or 0.21 percent, at
2,632.20.




Read more at Reuters.com Market News