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Tag Archives: dealers

The Euro “big boy” view of the Obama plan

From Bloomberg… “Florian Esterer, a fund manager at Swisscanto Asset Management, and Dirk Becker, an analyst at Kepler Capital Markets, talk about President Barack Obama’s plan to curb U.S. banks. They also speak with Bloomberg’s Rishaad Salamat about today’s meeting of Group of Seven finance ministers in London. ” Here is the press release from […]

TreasuryDirect for Treasurer Lockyer

I was reading about the efforts of states to directly market their municipal debt to retail investors. From Business Week: ~~~ “In March 2008, retail investors bought half of a $1.75 billion issue of general-obligation infrastructure bonds and the following October they bought nearly 80% of a $5 billion issue of Buy California Bonds—short-term revenue […]

Conflict supposition

~~~~”McDaniel this month defended the credit raters’ issuer-pay model at an SEC roundtable in Washington, saying that investors can pressure ratings companies just as easily as underwriters….”*~~~~ This will become the central argument in defense of the “issuer pay” model for credit ratings agencies…. The SEC receives information from credit rating agencies as part of […]

Babs and other tax credit bonds

MSRB NOTICE 2009-15 (APRIL 24, 2009) The American Recovery and Reinvestment Act of 2009 added a provision to the Internal Revenue Code that authorizes state and local governments to issue two types of “Build America Bonds” as taxable governmental bonds with Federal subsidies for a portion of their borrowing costs. The first type of Build […]

Trading platform transparency

There are many alternative trading systems (ATS) in the fixed income markets… they have slightly different price discovery, quotation and trade reporting structures… think of them as “liquidity pools”… I’ve always thought the important thing for market transparency and fairness is that all investors have access to all bids and offers on an ATS (think of […]


There is the potential for the dollars involved in the muniscam to be much bigger than the Madoff ponzi scheme… it’s “estimated that as much as $4 billion a year was vanishing into the system, based on the volume of problems”…. so 15 years of problems could be a $60 billion dollar theft from American municipalities… I hope this […]

Leveraged fixed income arbitrage 1999

~~~~ ” Leveraged fixed-income arbitrage trading strategies have not been a popular topic in the past several months. However, following the dislocations that occurred to world financial markets in the second half of 1998, many good opportunities for fixed-income arbitrage trading continue to exist for those firms that survived the peril of the previous year. […]

Closed loop system…

I’m reading a whitepaper on OTC markets from the interdealer broker ICAP… lots to comment upon… ICAP is the world’s largest and most powerful broker’s broker… headquartered in London they deal in FX, fixed income, derivative, commodity, and money markets. Their operations span all currencies and timezones. ICAP serves as the central hub for massive […]

Shadow banking system…

Yves Smith (Naked Capitalism) and Daniel Gross (Newsweek, Slate and The Big Money) discuss the shadow banking system, market structure, the CDS auction settlement process, the failure of Lehman Brothers, legislative and regulatory efforts and some ways forward… (running time = 27:45)


As the credit crisis decimates the balance sheets of the big fixed income dealers there is less principal trading… this is where the big dealers would use their balance sheets to interposition bonds between buyers and sellers… the dealers owned these markets through this market making activity… think Lehman, Merrill, Morgan Stanley, Goldman and Bear… […]