Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (34108)	10/17/1998 8:32:00 PM
From: Knighty Tin	Respond to of 132070

Tom, Yup. That spread was always one of the foundations of my bond fund management. It averaged about 25 basis points when I was managing my fund and I obviously bought the higher yielding bonds. Rates were higher then, and the spread is close to 30 basis points today. A need for liqudity could be part of the reason, but there also may be a big premium in the reverse repo market. In repos and reverse repos, the current bond is usually the trading sardine of choice. MB