Hearing a few client complaints on the street that banks are unwilling to bid for papers or honour prices indicated on screens which vindicates my point last week that most of the prices out there are cosmetic.
No wonder credit spreads look so good. The prices do not hold.
This is not even a credit crisis yet and thus it is slightly alarming.
My advice to folks at home. Do not panic if you really need to sell bonds and do not think of suing your bank because you are a sophisticated investor and expected to understand the risks involved in transacting in the OTC market.
I suggest you leave a sell order with your banker, on best effort basis.
These are heavenly times. They can potentially gorge you on the bid and rip up the offers because somewhere out there, there will be a hapless soul who thinks that paying 100 for Trikomsel or Tata Steel, for example, is a good idea since they missed out on the launch.
Well, there is no time for compassion or sympathy. There are people buying Oxley today.