This first section connects really well to the lesson I did today in Optimal Work – basically, do you expect there will be challenges? Because if you don’t, you can get really discouraged by them.
But the interesting thing with the way Optimal Work framed it was answering the question, “do I finish a task with the same enthusiasm I started it with?” If the answer is no, it’s likely because you hit an unexpected challenge.
There is a wealth of information in the OTC bond market about auction dynamics. BWICs from an account that “shops” see worse bids than an account that runs a “clean process.” I had one customer that would award the bonds to the cover and consistently got better execution than selling to the best bid in a normal auction format. Then you can negotiate how the custy posts the trade. If I bought a bond with a wide cover I could ask to post “traded” instead of the cover, but then everyone knows what that really means and there is a cost for less transparency. It is updating on top of updating and updating based on how you think I update. Then there were the real money accounts that would let the dealers earn a rent by going through this process so that they could buy their bonds in a “non-competitive” process. But then dealers would be asked where they bought the bonds and were given a pay up. That custy could endear themselves to a dealer and quietly corner a market but if they were too stingy on the pay up the dealer would put them in comp or lie to them. While this is massively complex trillions are transacted in this format and I think one of the unintended consequences of decimalization was removing this information from the publicly listed markets and actually decreases liquidity.
Good piece for the start of the school year
students learning from auction markets! yeah. let's bring it.
how about this "game" at the end of a quiz?
"[ ] <-- check this box if you want to count this quiz for your grade".