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The auction rate market was invented in 1984 by an investment banker at Lehman Brothers, Ronald Gallatin.
What Merrill did deliver to Springfield was a presentation entitled "Merrill's Auction Rate Market Sheet" that set out to explain the market for short-term securities aimed to help sophisticated investors manage cash.
"The recovery is under way, and the biggest loser in a rising rate market" is government debt, said Gary Pzegeo, who helps manage $4.5 billion in fixed-income assets at Gannett, Welsh & Kotler in Boston.
In order to adjust their money position to take care of their customers, banks buy and sell bonds sometimes at a profit in a falling inter est rate market and some times at a loss when market rates are rising.
State officials contended that UBS knew that the auction rate market was on the verge of collapse but did nothing to warn the loan corporation, which had issued $1.5 billion in securities, before the market seized.
Mahi-mahi (Coryphaena hippurus), also known as dolphinfish, have been identified as one of the most promising candidate species for development of warm-water marine finfish aquaculture due to their high growth rate, market presence, and global distribution.
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Low-cap rate markets are more likely to favor renters now.
Gottsegen: Let me put it this way: You can't rate marketing people solely on KPIs.
So if the Fed increases the rate, markets would be expected to nosedive.
The problems in the auction-rate market resemble the crisis that hit so-called structured investment vehicles last summer.
But when the $330 billion auction-rate market froze in February 2008, investors were suddenly unable to sell their holdings.
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