Any firms crossing Auction Rates?
Or is any firm buying them back from clients? We are lending (in most cases) vs. the positions but only 30 - 50%. Not enough if it is the majority of the account…How is your firm handling it - are they blaming the broker yet?
Not only are we allowing margin, but last week an institutional buyer cleared out quite a bit (big dollar, small % of whats out there) of our clients ARS up for bid.
I am assuming somone is buying some of our failed auctions, I have yet to be unable to sell one, and some of the auctions obviously failed because the reset rates were 8+% yet I still sold what I wanted
We are allowing margin (30 -50%). The ARSs that I have are munis and they are showing very little liquidity on the street. They are paying 5.12% double tax (and AMT) free, so, clients are happy - unless they need the funds. I hope we see some refi of this debt soon…
the SEC just allowed municipalities to bid on their own paper, approved it this am. NOFX go fvk urself.