SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: russwinter who wrote (26418)2/14/2005 12:01:52 PM
From: Wyätt Gwyön  Read Replies (2) of 110194
 
Clearly the primary dealers are finally facing the reality of having to pay for the new paper.

what do you think about the fact that the primary dealers are at a record high for leverage? is this a risk for them, the way high margin debt poses a risk for the stock market? if it is a risk, then the risk would seem to lie in forced liquidation a/k/a distress selling (as it always does for the overleveraged). but i don't know how that would manifest for the primary dealers.

perhaps a bond market bake sale where the only item on the menu is "toast"? and if Uncle Al can trump any distress selling with monetization, maybe it's USD burnt to a crisp?

any ideas?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News