Believe it or not! Today's Wall Street Journal has listed under the New Highs and Lows section on page C13 the Assured Guaranty 6.875 bond. It's great to see one on the AGO baby bonds on this list. The liquidity for all of them will continue to improve over time with the re-listing.
As of Monday, Apr 5, Finance.yahoo is still the only free site that works with the new AGO debt. MarketWatch works with a "period" and a "pr" in the symbology, but still not functional. Can't help but wonder that the AGO-pB symbology is for a preferred stock, but with the old FSA issues we are writing about are actually debt issues and are not preferreds. Stayin' tuned...
_So case in point and proof once again that FINRA and the OTC bond market destroy all liquidity and pricing for the retail investor - just as they are designed to - in order to profit Wall Street Banks at the expense of consumers._
Reportedly, the dealers almost stopped selling the FSA minibonds to retail customers in the last few weeks. They were simply buying from customers and accumulating as they were expecting the NYSE listing by the end of March, which could propel a big price jump.
So how infuriating is this. To take just one of the three baby bonds, the 6.25%. The last day of trading on over the counter bond market is reported by FINRA TRACE at $19.1 Of course that is a lie because there was no volume available to trade at any price, and if you were lucky to find anything you would have bought at $19.7 and sold at $18, based on that day's spread.
Entire volume for 3/31/2010 on the OTC bond market was around 10K traded. However that is also not exactly true, because FINRA TRACE reports both sides of the trade. So a single purchase for 150 might show up three times, as 150 sold to a dealer, 150 sold dealer to dealer, and 150 from that dealer to the buyer. In a market where all buyers and sellers can see each other (like NYSE), there would be a single trade from the original seller to the ultimate buyer.
Immediately on NYSE we get over twice the volume with 24K+ traded (and remember these are more efficient transactions per the explanation above, so 24K on NYSE is like 40K volume on OTC bond market).
And - finally - with liquidity restored - the price of these bonds immediately jump up, and will probably continue up.
So case in point and proof once again that FINRA and the OTC bond market destroy all liquidity and pricing for the retail investor - just as they are designed to - in order to profit Wall Street Banks at the expense of consumers.
Thanks for the reference post. I had not looked at the FSA bonds on the FINRA site since the beginning of 2010. I hold my FSA bonds at Fidelity. Wow! has Fidelity been giving me a haircut on the mark to market. This is Fidelity's mark to market as of 3/30/2010....
FSB.GB Fidelity=$17.50 vs Trace at $20.1
FSB.GD Fidelity=$14.688 vs Trace at $16.8
I hold a lot of shares of both. This should make for a big market to market gain on April 1.