European Tribune - Comments - European Salon de News, Discussion et Klatsch

European Salon de News, Discussion et Klatsch - 13 July | 133 comments (133 topical, 0 editorial, 0 hidden)

at what point in the period is a bondtrader most likely to surrender a note for sale to its issuer below cost, i.e. price paid for the bond or balance of income to maturity?

When he is convinced that it is now in fact worth less than the price offered and likely to further decline? If the choice could be taking a haircut or suffering a near total loss, he might take the haircut. Or not, depending on testosterone levels.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Jul 13th, 2010 at 09:06:27 PM EST
[ Parent ]

Re: Abominations (none / 0)

One has to consider default risk and recovery rate...

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Migeru (migeru at eurotrib dot com) on Wed Jul 14th, 2010 at 09:25:40 AM EST
[ Parent ]

Re: Abominations (none / 0)

ahh yess.

Market solution? or CIVIL ACTION?
Market solution? or CIVIL ACTION?
Market solution? or CIVIL ACTION?

bacon, bacon, bacon, I want bacon.

What to do, what to do...

Diversity is the key to economic and political evolution.

by Cat on Wed Jul 14th, 2010 at 10:17:28 AM EST
[ Parent ]

Re: Abominations (none / 0)

Both and, not either or.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jul 14th, 2010 at 11:32:27 AM EST
[ Parent ]

European Salon de News, Discussion et Klatsch - 13 July | 133 comments (133 topical, 0 editorial, 0 hidden)

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