Tuesday, December 29, 2009

Comings and Goings

I need a little help. Looking for a retail focused b/d to buy bonds (Corps, MBS, Sovereigns, etc.) from - any recommendations? No problem sourcing it at an institutional level, I'm talking about buying for my personal account, some directed trades. I'm tired of dealing with the TDAmeritrades of the world who are great at stocks, but don't know the difference between an MBS and a corporate and want to charge me a 150bp spread everytime I trade or are getting duped on the other side of the trade with an asinine price from the seller.

Don't expect much until after the new year passes. CMBS has been relatively quiet, but it's not dead. This week, we've seen lists that include everything from A4s down through AJs (on one of the TIAA deals), and several small seasoned credit pieces are floating around.

ZH and Sprott have their tin foil hats on again, but I moved mine prominently to my desk for easy access after reading.

Why didn't Peter Cooper Village/Stuyvesant Town default?

Tepper is heavily invested in CMBS - but some of his logic is wrong, or he's talking his book.


crabsofsteel said...

I've never bought any CMBS for my p/a, but if I were to do so I'ld sign up with Fidelity or Schwab. They probably don't have much odd-lot CMBS inventory, but the sell side does and is usually happy to get rid of it.

crabsofsteel said...

Oh, you asked why PCV/ST didn't default. The answer is that the borrower wants a loan restructuring and wants to retain ownership. This is a lot easier when the loan is current as the servicer doesn't have to advance or collect default interest/late fees. The question remains whether any of the mezz lenders will move to foreclose.

Anonymous said...

For directed trades, you can call Schwabs Fixed Income group and tell them you want to do a "directed trade" and they will tell you what they need to do it for you. They dont charge much.


Concrete Jungle said...

thanks for the feedback