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November 22, 2007


Drop Your Pfandbriefs and Take Cover

Europe Suspends Mortgage Bond Trading Between Banks

“‘In light of the current market situation and in order to avoid undue over-acceleration in the widening of spreads,’ the committee of banks and borrowers ‘recommends that inter-bank market making be suspended,’ the European Covered Bond Council said in an e-mailed press statement.”

That’s the way to keep spreads from widening: shut down the market. ;-)

This entry was posted on Thursday, November 22nd, 2007 at 2:51 pm (utc+8) and is filed under Trading and Investing.

3 Responses to “Drop Your Pfandbriefs and Take Cover”

  1. pete said:
    November 23rd, 2007 at 3:07 am

    ayn rand just rolled over in her free market grave

  2. Babak said:
    November 23rd, 2007 at 11:19 am

    Uh-oh. This can’t be good.

  3. Jay said:
    November 24th, 2007 at 7:59 am

    the entire problem is marking to the market. the bid or ask instead of last sale. the markets are wide because this marking makes it possible to be marked out of business. so all market makers move away from the market. just mark at last sale all investors and financial institutions will be better off.

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