Friday, March 20, 2009

$233 Million IG Bond BWIC Latest On The Menu

In addition to the $261 million loan BWIC reported yesterday by Debtwire, another $233 million BWIC, this time in IG bonds has hit the market. Traders have only until 11 am this morning to submit lowball bids. While loan BWICs over the past month have been increasing rapidly, bond and especially investment grade bonds have not seen wholesale blue light specials yet. It is no surprise that BWICs pick up in advance of the March 31 redemption deadline - it is certainly the case that many smaller and mid-sized funds are seeing the bait-and-switch from their prime brokers, who are now selling their collateral-call seized assets, and likely also submitting the winning bids at a big discount (hopefully not while ignoring bid flow from accounts, as that would be flagrantly illegal).

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Anonymous said...

they should be required to put these up on e-trade as well so the little guy could bid