March 31 redemption deadlines anyone? The avalanche of BWICs hitting the market is oddly missing from mainstream media... Just today a cursory glance reveals over $110 in CMBS million being shopped by brokers; additionally there is a $98 million loan BWIC as well as the odd $40 million of Lehman bonds looking for a bid.
BWICs, many argue, are the one true indicator of the level of deleveraging within the fund community. With two weeks left until hedge funds have to release tons of redeemed cash (especially newly unfrozen funds like Citadel and Fortress), look for this indicator to spring higher, and to provide terrific opportunities to buy bonds, loans and MBS at below market prices.
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