dagblog - Comments for "Asterisk Bonds"

Idk, with the Transaction

EmmaZahn — Sat, 08 Dec 2012 00:35:42 +0000

Idk, with the Transaction Account Guarantee set to expire 12/31 there is about $1 trillion looking for a new homes. Even if it flees back to MMFs or bigger banks, it will still be looking for the ones with the safest securities offering not the best yield since they are quite happy just now with none. More, somewhat snarky info:

Some Banks Hoping To Be Too Small To Fail « Dealbreaker: Wall Street Insider – Financial News, Headlines, Commentary and Analysis – Hedge Funds, Private Equity, Banks:

Good point that a lot of

Michael Maiello — Sat, 08 Dec 2012 00:07:29 +0000

In reply to I think the actual term is

Good point that a lot of people would take the risk for an extra 100-200 bps. But if it's 500 bps, we're in trouble.

I think the actual term is

EmmaZahn — Fri, 07 Dec 2012 18:59:56 +0000

In reply to Asterisk Bonds

I think the actual term is subordinated debt. But I guess asterisk works, too Neither is likely to be used by traders who prefer at most two-syllable descriptives.

And, yes, there would definitely be a market for it because 1) it would probably have a higher yield than regular Treasuries; and, 2) it would be preferable to some agency debt and non-government asset-backed paper by cash and treasury managers.

Oh, man, my long-term memory is really being strained trying to remember this stuff.