Bond Pricing

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May 27, 2009 4:42 pm

Does anyone have recommendations on a good bond desk that has competitive pricing?  I feel like I am getting abused on mark-ups. 

I called 3 different providers on the same issue and got three different prices all of which were higher than prices I saw coming across my trace.  I then spoke to a buddy at a wirehouse to see where they were offering the bond at and it beat all my providers by a almost a full point.  This was a secondary offering btw.  

May 27, 2009 4:46 pm
jpw:

Does anyone have recommendations on a good bond desk that has competitive pricing?  I feel like I am getting abused on mark-ups. 

I called 3 different providers on the same issue and got three different prices all of which were higher than prices I saw coming across my trace.  I then spoke to a buddy at a wirehouse to see where they were offering the bond at and it beat all my providers by a almost a full point.  This was a secondary offering btw.  

 
 
Have you tried Larry's Bond Desk?
May 27, 2009 10:07 pm

Simply do a DVP at a fixed income dealer of your choice for the pricing you like.  You can PM me if you need more details.  This is quite common.

May 27, 2009 10:34 pm

Sorry to hijack this thread, but it reminded me of a question I've been meaning to ask.

 
How do wirehouse bond inventories - specifically munis - compare to EDJ's inventory?
May 28, 2009 1:43 am

Borker, IDK about wirehouse specific muni inventories but I often get frustrated trying to ladder short-intermediate munis and call my buddy at LPL to query him... "Hey Joe, whaddyahave 8-10 years, AA or better, $50k or more available, non-amt, etc?"  

 
Holy smokes, through LPL Joe has quantity- hundreds of cusips and hundreds of millions of inventory- and he has yield to broker of a point or more, and the client still has better yield ,YET  I dont have d*i*c*k* available at here Greenie World.  Many times or most of the time I have zilcho and occasionally a $5-10k position that would only pay me 25bps etc. 
 
IMO this is a huuuuuge propaganda point that EJ gets my lemming bretheren to believe... "We have the best availability and best priced inventory.  We don't have a trading desk taking profit out yada yada bla bla bla."  I don't get it.  Oh yeah I guess I do.  It's B.U.L.L.$.H.I.T!     Juck Phones!
May 28, 2009 10:51 am

That was interesting, Juck.


Ice, 
I have a client who will only buy AAA rated and insured bonds - which are tough to find these days, of course - and she constantly complains that she had better selection when she was with SB.
 
I'm just curious as to whether the muni inventory at a wirehouse is larger/better than that of  the Greenhouse, or if she's just being a PITA.
May 28, 2009 11:01 am

I agree with Juck.. as i still talk to a lot of my old friends at jones, they have crap for muni's, and if something does come in it is gone before you get a chance to put a lot of people in it..



I clear through pershing and they have quite a bit of inventory and the payouts are excellent also

May 28, 2009 11:04 am

it's jones.. I have a lot of AAA insured...



I have a friend who is a bond trader for a boutique firm and he tells me he gets call from Jones once in a while, and they always want stuff that is so specific it is hard to find good quantities. Those corps with the death benefit(estate feature)...