No. of Recommendations: 1
Does anyone here trade bank debt, and what is a good introduction to how to do this?

By 'bank debt' I am assuming that you mean loans that banks have made, not bonds that banks have issued.

There are these really cool things called CDOs (Collateralized Debt Obligations), MBS (Mortgage Back Securities), RMBS (Residential Mortgage Backed Securities) and ABS (Asset Backed Securities). They were all designed to securitize bank loans so they could be traded. They, along with the CDSs (Credit Default Swaps) that attempted to insure against the default of these instruments, helped cause the credit crisis.... The markets for these instruments froze up during the credit crisis, and haven't really returned.

Here's a link that I found that allows institutions and accredited investors to trade in these markets http://www.secondmarket.com/# No idea what the requirements to be 'accredited' to trade here are.

AJ
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.