brewer12345
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 6, 2003
- Messages
- 18,085
clifp said:I am surprised at the markets modest reaction to news on OSM/ISM both trading around 21.10 at the opening. With SLM trading at 55+ I guess there is a hedge opportunity to buy SLM and if the deal goes through make money on the stock, while losing money on the bonds.
I'm stunned that ISM actually traded up this morning (so far). Either there is some hedge activity going on, or this is an indication at how cheaply the bonds have been priced all along. I can tell you that there is a strong bid for *any* non-zero coupon bond trading at 80 cents on the dollar, regardless of rating.