Re: Sivs become favored asset

[ Follow Ups ] [ Post Followup ] [ Mosler dot ORG BBS ]

Posted by Winslow R. (69.232.79.238) on 23:00:20 10/23/07

In Reply to: Re: Sivs become favored asset posted by warren mosler

I have had a difficult time finding a public 'market' for debt. Etrade, Zion's bank seems to have a market yet the spread between buyer and seller is often large (2-3%) on yield. Often there are only sellers and no buyers so it is impossible to price.
http://www.zionbank.com/zd_bonds_less.jsp

85% seems a small haircut given 3% spread on buying/selling a 9% bond is over 30% markdown. There are also no volumes published that I see to indicate depth of market.

Any ideas for access to a better market information?

: : What more would you do to help facilitate the proceess?
:
: DROP THE DISCOUNT RATE TO THE FED FUNDS TARGET RATE, REMOVE THE STIGMA, AND ACCEPT ANY COLLATERAL AT 85% OF MARKET VALUE FROM MEMBER BANKS IN GOOD STANDING.
:
: THIS WOULD STABILIZE FED MEMBER BANK $US FUNDING WHICH IS POTENTIALLY ALL GOVT GUARANTEED VIA DEPOSIT INSURANCE ANYWAY, AND WON'T INTERFERE WITH 'REAL ECONOMIC VALUE' (WHATEVER THAT MEANS). THAT IS, IT WON'T PROTECT SHAREHOLDERS FROM TAKING HITS DUE TO DEFAULTS, BUT WILL PROVIDE 'NORMAL' BANK FUNDING FOR BANK ASSETS
: THAT NEED TO BE 'QUALIFYING' ANYWAY AS A MATTER OF CURRENT REGULATION
:

Follow Ups:

Re: Sivs become favored asset - warren mosler 10:32:38 10/24/07 (1)
- Re: Sivs become favored asset - Winslow R. 16:28:59 10/30/07 (0)

Post a Followup

Name:
E-Mail:
Subject:	Re: Sivs become favored asset
Comments:	: I have had a difficult time finding a public 'market' for debt. Etrade, Zion's bank seems to have a market yet the spread between buyer and seller is often large (2-3%) on yield. Often there are only sellers and no buyers so it is impossible to price. : http://www.zionbank.com/zd_bonds_less.jsp : : 85% seems a small haircut given 3% spread on buying/selling a 9% bond is over 30% markdown. There are also no volumes published that I see to indicate depth of market. : : Any ideas for access to a better market information? : : : : What more would you do to help facilitate the proceess? : : : : DROP THE DISCOUNT RATE TO THE FED FUNDS TARGET RATE, REMOVE THE STIGMA, AND ACCEPT ANY COLLATERAL AT 85% OF MARKET VALUE FROM MEMBER BANKS IN GOOD STANDING. : : : : THIS WOULD STABILIZE FED MEMBER BANK $US FUNDING WHICH IS POTENTIALLY ALL GOVT GUARANTEED VIA DEPOSIT INSURANCE ANYWAY, AND WON'T INTERFERE WITH 'REAL ECONOMIC VALUE' (WHATEVER THAT MEANS). THAT IS, IT WON'T PROTECT SHAREHOLDERS FROM TAKING HITS DUE TO DEFAULTS, BUT WILL PROVIDE 'NORMAL' BANK FUNDING FOR BANK ASSETS : : THAT NEED TO BE 'QUALIFYING' ANYWAY AS A MATTER OF CURRENT REGULATION : : :
Optional Link URL:
Link Title:
Optional Image URL:
Enter the characters you see in the box:

[ Follow Ups ] [ Post Followup ] [ Mosler dot ORG BBS ]