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Minyan Mailbags

Team Minyan,

I tried to sell $150,000.00 of Nuveen 7 day paper and was informed by my broker that she could not sell it because there weren't enough bidders. I asked her what she meant and she replied that all we can do is to try again next Wednesday.

I have no idea if I will be able to sell it next week or not. I asked her what would happen if I had to have this money now and she had no answer. If I had not tried to sell this product, I would have never known there was a problem. I just wonder how many people like me are clueless about this.

-Nervous Minyan Ed

NME-

I don’t “know” the particulars, obviously, but if I were you, I would get a manager on the phone pronto and get to the bottom of this.

Good luck,
Toddo


Toddo,

I took your advice and talked to a higher up, the news was not great. They had a meeting this week as Nuveen auctions just started failing. I could have got it out a week or two ago, so he says. He told me it could be worse as some people park their money there and use it to pay margin. They are, in his words, “screwed.” He said the principle is safe because it is considered ‘preferred’ and comes before Nuveen closed end funds. I will just have to be patient as there is nothing they can do.

I asked him if other people were having a problem with this explanation and he said that there is certainly is a lack of confidence and they are having a hard time explaining that it is not their fault. He also said people have asked to borrow against their assets but they cannot even do that. He said I will continue to get my interest every week and he will continue to submit them for auction every Wednesday, but he’s not optimistic of a quick solution.

Boy, who would have ever thought investing in fixed income would be harder than trading stocks?

-Now Very Scared Minyan Ed


Toddo,

I hope you're having a fine day. Quick question about contra hour. Do you give it more credence when the there's a countertrend turn that occurs around 2pm give or take?

Thanks kindly,
Minyan Dennis

MD,

As a general rule of thumb, yes. All day action that has a distinct 'counter-trend' move from 2pm-3pm EST typically plays out this pattern. We've spoken about this seemingly non-sensical movement for many years and while I've yet to figure out "why," I'm always conscious that it exists at some level.

Toddo


R.P.