https://news.coveredbondreport.com/2011/11/new-pfandbrief-market-making-standards-set-for-early-2012/ News, analysis, data Tue, 21 Jul 2015 13:50:27 +0000 hourly 1 http://wordpress.org/?v=3.0.1 https://news.coveredbondreport.com/2011/11/new-pfandbrief-market-making-standards-set-for-early-2012/#comment-48 Eusebio Garre Wed, 23 Nov 2011 21:08:32 +0000 https://news.coveredbondreport.com/?p=4440#comment-48 Nice try. Not nearly as good for investors as the old agreement, though, which ensured liquidity for everyone (since every trader could expect to trade the bonds on a narrow, fixed bid-offer. Unfortunately, the financial crisis has shown that you can't force traders to keep fixed bid-offer spreads in dislocated markets, and market dislocation seems to have become the new normal since a few years... At least the VdP's new initiative provides more transparency for jumbo spreads on a freely available basis than before. Nice try. Not nearly as good for investors as the old agreement, though, which ensured liquidity for everyone (since every trader could expect to trade the bonds on a narrow, fixed bid-offer. Unfortunately, the financial crisis has shown that you can’t force traders to keep fixed bid-offer spreads in dislocated markets, and market dislocation seems to have become the new normal since a few years… At least the VdP’s new initiative provides more transparency for jumbo spreads on a freely available basis than before.

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