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Given that these are the deepest securities markets in the world, why not string out the sales over a few day's time so parties smaller than megabanks could bid
by everybodyknows 4y ago
Given that these are the deepest securities markets in the world, why not string out the sales over a few day's time so parties smaller than megabanks could bid, presumably higher?
- funstuff007 4y agoThey were probably under a lot of pressure to start making some progress on this as soon as possible. Fast resolution is a strong indicator of strong financial markets. Goldman is just more nimble than the competition.
- dh2022 4y agoApparently these securities are long-ish dated bonds, currently under water because of interest rates going up. Only big institutions can afford to wait for interest rates to go down and price to go back up again (and judging by how inverted the yield curve is, rates will go down in a few years). A few years from now current buyers may even make money on these. I was thinking the Treasury will take over the bonds - they certainly have the capability to wait a few years.
- lazide 4y agoUnless there is deflation, the price of these bonds isn’t going up. Principal has lost its value far more than the interest rate will ever compensate for.