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#31
08-24-2007, 08:25 PM
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Re: Bond Trading
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CrushinFelt, just saw this thread. V. nice call on Countrywide's default being overstated in the short-term. I had similar thoughts, but I'm just a junior analyst with no real money :P [/ QUOTE ] I'm basically in the same boat. I was able to come out of college (and grad school) with no debt, so I have some funds to play around with [img]/images/graemlins/smile.gif[/img] 
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#32
08-24-2007, 08:37 PM
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Re: Bond Trading
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Also, a factor in my countrywide trade that I didn't mention is the lack of buyers in the market thus making supply/demand another big factor. I can take advantage of people's risk aversion levels by offering a lower price that they should sell it for because they want to get it off their books. A lot of their bonds, though rated as BBB+ and the like, are trading at yields higher than a lot of junk bonds (in exces of 12%). [/ QUOTE ] ??? You're new to bonds, yet all of a sudden you're smarter than all those bond traders that won't touch that stuff with a ten foot pole?
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#33
08-24-2007, 08:49 PM
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Re: Bond Trading
[ QUOTE ]
[ QUOTE ] Also, a factor in my countrywide trade that I didn't mention is the lack of buyers in the market thus making supply/demand another big factor. I can take advantage of people's risk aversion levels by offering a lower price that they should sell it for because they want to get it off their books. A lot of their bonds, though rated as BBB+ and the like, are trading at yields higher than a lot of junk bonds (in exces of 12%). [/ QUOTE ] ??? You're new to bonds, yet all of a sudden you're smarter than all those bond traders that won't touch that stuff with a ten foot pole? [/ QUOTE ] i don't get this comment...he seems to want to learn about bonds and is entering the market selectively during times of extreme dislocation. and he's on the floor. he never said he's smarter than all bond traders or any othe rpro bond traders. the great thing is that there are many people who don't want to touch these bonds with a 10 ft pole...gives great opportunity to scoop up deals. Barron
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#34
08-24-2007, 09:49 PM
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Re: Bond Trading
[ QUOTE ]
[ QUOTE ] Also, a factor in my countrywide trade that I didn't mention is the lack of buyers in the market thus making supply/demand another big factor. I can take advantage of people's risk aversion levels by offering a lower price that they should sell it for because they want to get it off their books. A lot of their bonds, though rated as BBB+ and the like, are trading at yields higher than a lot of junk bonds (in exces of 12%). [/ QUOTE ] ??? You're new to bonds, yet all of a sudden you're smarter than all those bond traders that won't touch that stuff with a ten foot pole? [/ QUOTE ] Smarter, well, no in the sense that I'm not as "used" to the markets as they are. However, most BIG bond traders are holding entire portfolios of these things and with the entire market going to hell and their diversification going to hell, they are all unlaoding what they can. I, however, am responsible for nothing but my own cash, which is not that much, and not too big of a deal if I lose it. I am 23 with no debt and few expenses and can afford to take more risk. I see this a little more of risk acceptance than "outplaying" the market. They don't want the bonds? [censored] them. Give the risk to me. It is a combination of both though.
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