http://alephblog.com/2007/12/03/on-the-value-of-secondary-and-primary-markets/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Sat, 31 Jul 2010 14:50:54 -0400 hourly 1 http://wordpress.org/?v=3.0 http://alephblog.com/2007/12/03/on-the-value-of-secondary-and-primary-markets/comment-page-1/#comment-15867 PaulinKansasCIty Thu, 06 Dec 2007 22:41:10 +0000 http://alephblog.com/?p=384#comment-15867 CreditTrader; if you have an opinion on the student loan CDO market I'd love to read it. CreditTrader; if you have an opinion on the student loan CDO market I’d love to read it.

]]> http://alephblog.com/2007/12/03/on-the-value-of-secondary-and-primary-markets/comment-page-1/#comment-15866 CreditTrader Thu, 06 Dec 2007 19:03:51 +0000 http://alephblog.com/?p=384#comment-15866 First post (could not resist) - Just as an FYI, the primary and secondary corporate bond markets are extrenely dislocated currently. New issues are coming very cheap to the more liquidi CDS markets and only the highest quality corporates from the 'right' sectors are getting deasl done. Note JWN last week went out at almost $6 cheap! whereas the GE deal went off more like $1-2 cheap...I completely agree with your views on the need for a primary and secondary market to maintain one naother but in this credit-strapped market, arbitrages are tough to put on between bond and CDS markets (to keep that basis in line) and dealers dont want to make markets in any secondary deals for fear of being picked off. Bottom line - grab the allocations, buy the bonds cheap and buy CDS protection against them to lick in some arbs. Until real money accounts start to play the basis more or fast money comes back to the credit table, new issues will be extremely cheap and the basis will remain. Oh, and on that cheery note, Happy Hannukah. First post (could not resist) – Just as an FYI, the primary and secondary corporate bond markets are extrenely dislocated currently. New issues are coming very cheap to the more liquidi CDS markets and only the highest quality corporates from the ‘right’ sectors are getting deasl done. Note JWN last week went out at almost $6 cheap! whereas the GE deal went off more like $1-2 cheap…I completely agree with your views on the need for a primary and secondary market to maintain one naother but in this credit-strapped market, arbitrages are tough to put on between bond and CDS markets (to keep that basis in line) and dealers dont want to make markets in any secondary deals for fear of being picked off. Bottom line – grab the allocations, buy the bonds cheap and buy CDS protection against them to lick in some arbs. Until real money accounts start to play the basis more or fast money comes back to the credit table, new issues will be extremely cheap and the basis will remain. Oh, and on that cheery note, Happy Hannukah.

]]> http://alephblog.com/2007/12/03/on-the-value-of-secondary-and-primary-markets/comment-page-1/#comment-15859 Josh Stern Tue, 04 Dec 2007 14:55:51 +0000 http://alephblog.com/?p=384#comment-15859 Agree with everything in this column. But I'll add that I'd like to see the IPO market become more structured and regulated to level the playing field (for both companies, to save them explicit and implicit fees, and for individual investors). The value add of the IPO part of investment banking isn't commensurate with the fees. Let the SEC structure the IPO and pre-IPO audit process and the alternative liquidity would be available from the market - or at least companies could decide if they wanted to go banking lite. Agree with everything in this column. But I’ll add that I’d like to see the IPO market become more structured and regulated to level the playing field (for both companies, to save them explicit and implicit fees, and for individual investors). The value add of the IPO part of investment banking isn’t commensurate with the fees. Let the SEC structure the IPO and pre-IPO audit process and the alternative liquidity would be available from the market – or at least companies could decide if they wanted to go banking lite.

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