‘Trust But Verify’ in Bond Market – Bloomberg
January 6, 2017 \
8 Comments
Full Article: Bloomberg
The bond market is “closed off to you and me” and often involves shady practices and less-than-truthful information, Butswinkas said. Former President “Ronald Reagan’s saying ‘trust but verify’ would be an understatement,” he said.
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8 Comments on "‘Trust But Verify’ in Bond Market – Bloomberg"
No one is lying about price, quantity or bonds. They are making up stories for story bonds…. 5 years in jail for that? Seriously?
I agree with Merlin. This, or shades of it, happen in every pool of commerce out there. You, Mr. Institutional Investor, pulled up your trusty Bloomberg, ran the bond with your own assumptions, and decided there was value in the security at the offer price. Your bad.
If he gets off, it would set an extremely bad precedence. Its time for the corporate bond market to head toward transparent pricing – yes you can’t make the kind of money you used to anymore if prices are transparent but it is what it is. There is no reason for this type of inefficiency in such an established market. The protocol can’t be you can just make up prices whenever you feel like it because ‘everyone does it’. Its ridiculous. Have we learned nothing from 2008?
What do you think market makers do if the don’t “make up a price”? Who/where do they get the price from? If someone else, how did the first person in the chain come up with the price?
All prices are “made up ” in that it represents what someone is willing to pay at a moment in time.
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