Given all the failures in the auction market recently, I'd just like to highlight, for those of you out there that aren't aware of it, that the bond market is not the stock market. Stocks are generally exchange traded securities driven by sophisticated order matching networks. The difference in the number issues can best be described, for those of you more familiar with equities, as imagining the entire universe of equities as being the 30 stocks of the DJIA. The bond market would then be all other stocks that exist in the world. With a nod to Joe Jackson, I've written some new lyrics to his song It's Different for Girls to explain further.
What the hell is wrong with bonds today?
There are no bids on any at all
Sellers say that this just isn't right
Dealers pass, and shun every seller's call
They say, we can't believe it
You can't, possibly mean it
In stocks, this doesn't happen
In stocks
Well, who said anything about stocks?
No, not stocks they said
Don't you know that it's different for bonds?
(Please give me bids...)
No, not stocks they said
Don't you know that it's different for bonds?
They're not the same
Buy side talks about a level field
Transparency and e-lectronic exchange
Sell side says without risk capital
Fixed income ain't worth more than loose change
Why's this? There's order matching
Networks, they are a-hatching
Dealers say, we're not buying
Not at all
Well, at least give us a throwaway bid
No, not a throwaway
Don't you know that it's different for bonds?
(At least this time)
No, no, no, no, not stock they said
Don't you know that it's different for bonds?
They're not the same
They're not the same
etc.
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3 comments:
Scary Bondguy. I almost published a simialr blog today, but I went with Buffett and auction rates.
Scarier than you think, mein Herr. The post I was going to do, before my creative wave, was titled Buffett's Buffet, which I was going to do tomorrow.
In my IUO column, I titled a segment Buffett Style.
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