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12#
发表于 2011-7-13 10:07
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Actually its exactly correct. 10-year notes do it all the time as shorts build up against corporate issuance. Ask a repo trader if he's never gotten squeezed on a Treasury. Around auction time when the short base builds up, the active issue goes special all the time.
skillionaire Wrote:
-------------------------------------------------------
> sct123 Wrote:
> --------------------------------------------------
> -----
> > look at it this way:
> >
> > new UST gets issued. a dealer ends up short the
> > issue for whatever reason and has to make
> delivery
> > or he will fail. the UST issue happens to be
> in
> > short supply since investors want to own the
> new
> > issue. Since the UST is in short supply and
> the
> > dealers need to buy the issue or they will
> fail,
> > the issue is considered on special or hot. You
> > come along and happen to own some. the dealer
> is
> > willing to give you a repo (lend you money) for
> a
> > lower rate or even sometimes a close to zero
> rate
> > in order to get their hands on the collateral
> you
> > have.
>
> That's an interesting way to look at it, but it's
> simply incorrect.
>
> On the run Treasuries are never "in short supply"
> - you're trying to justify an incorrect answer and
> most likely confusing people. |
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