John Pitera's Market Laboratory Message Board

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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Oblomov who wrote (5341)	12/26/2001 12:47:44 PM
From: John Pitera	of 33421

Hi Oblomov, borrower and lenders come in many permutations. Henry gave a good answer to this Message 16814180 I'd add that let's say I'm a company that is going to borrow money, one Bank quotes me 300 basis points over a Key Califonian Muni Rate, the second firm quotes me 335 points over a Fannie Mae Agency rate. Someone else 350 over a GE commercial paper rate. The problem I have as the company is that those rate relationships are changing all the time. My best quote last week may not be the best one this week. We saw MOB spread, Muni's over bonds spread widen back in 1994 when Orange county Ca.had it's debt and funding problem. so as Henry pointed out, it helps to have standards.

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