BlackRock’s paper-issuing arm issued a pretty interesting paper this week on bond standardization.1 Basically: there are a lotta bonds, and none of them trade and it’s impossible to get the size you want of the bond you want, and this could be solved by each issuer only having, like, three bonds, and re-opening them when they need to borrow more money, instead of creating new bonds all the time. Each issuer has only one stock, mostly, so why can’t they cut back on the bonds a bit?
Also all the bonds should mature at the same times, preferably like IMM dates, to make hedging easier. And to make everyone refinance at the same time. What fun those times would be. September 20, 2008, for instance, five days after Lehman filed for bankruptcy, would have been a rough time to have to refinance bonds.
The argument is pretty straightforward. Bonds don’t trade very much: Read more »
All BlackRock wanted to do was make things easier for you. It had no prurient pecuniary motive in launching its own corporate bond-trading platform. It just wanted to help. That’s how it’s become the world’s largest money manager, after all. Read more »
The Upside To Larry Fink Being Appointed The Next Treasury Secretary Is That It Puts Charlie Gasparino One Step Closer To Sleeping In The Lincoln BedroomBy Bess Levin
“My survey of Wall Street executives [shows] Jack Lew in the running for this job…They think that he’s the most likely guy to be Treasury Secretary at least that’s according to the people I talked to: major Wall Street CEO’s and executive suite players that I deal with…The other guy that’s out there is Larry Fink CEO of BlackRock. I will say this, Larry Fink is a guy I know very well. I consider him a friend. The upside to Larry is clearly that there is no smarter guy on Wall Street that I know right now. He really understands the business…I think Larry wants the job. The negative is that he is really associated with the Wall Street crowd. That is something that I don’t think the Obama administration would go for.” –Charles Gasparino, close personal friend of Larry Fink [FBN]
BlackRock Employee Has Less Than One Hour To Stretch, Mentally Prepare For Shot At Olympic(-ish) Glory (Update)By Bess Levin
Or it might not. No one can say at this time. Charlie Gasparino reports: Read more »