Below is the detail on the new baby bonds from Oxford Lane Capital.
The issue is rated BBB from Egan Jones. You can find the info on this credit rating on the bottom of this page.
There is no OTC grey market trading on this issue.
The pricing term sheet can be read here.
BBB rating, even from Egan Jones? Damned by faint praise gains new meaning on this one.
I was told that a grey market was available for preferred stocks, but never for baby bonds. There is immediately some kind market for these baby bonds, however it is unlike the grey market for preferred stocks that has a public ticker symbol. You have to call a broker — and I did flip RCC before there was a symbol and public trading.
It makes sense, because I have never seen a baby bond with a grey market ticker symbol. Has anybody else?
AF-
Looks like the earliest would be the 3/16 mentioned in the filing- right?
What do you mean -“immediate” ?
With respect to baby bonds, Tim always writes “There is no OTC grey market trading on this issue.” My point is that I have been told that there is never any OTC grey market trading on any baby bond issue. The baby bond issues differ from the preferred issues in that way. However, there is a market in these baby bond issues before they begin trading with their permanent ticker symbols — it’s just a different kind of OTC market with no publicly accessible ticker symbol or quote.
I’m not entirely sure what your question is but the assertation is correct. Baby bonds don’t pick up tickers before they get listed on their final venue so they don’t trade electronically. They do trade by cusip verbally like an actual bond accessible through bond desks
Thanks for the perfect explanation. So, in reference to baby bonds, it always goes without saying that there is no OTC grey market trading on those issues.