Update from the Trenches

by Divina K. Westerfield, Esq. on February 10, 2010

Interesting news today regarding the current state of the note market. Those that are in the trenches all day long buying and selling notes are finding that banks are extremely reluctant to let go of any notes. Banks don’t have any urgency to sell their performing or even their non-performing notes since they’ve been bailed out. While bid prices are 50% – 60%, some banks are seeking 90% for performing notes – and some as much as 70% for non-performing notes. It appears that with the first quarter there is a renewed vigor in one-off participations, new-comers are upping the anti and the bids. We’re calling our other contacts and will have more later.

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