Salient to Investors:

Investors and regulators say unscrupulous mortgage bond sales tactics are widespread in a market lacking transparency, where even Wall Street’s most sophisticated mortgage investors remain at risk.

Marilyn Cohen at Envision Capital Mgmt said managers who depend on dealers to find securities and quote prices over the phone are often misled – they all do it.

Lawrence Post at Post Advisory Group said corporate bond trades are generally posted on Trace, making deception more difficult.

Joseph Fichera at Saber Partners said in every market with transparency, trading has improved, along with increased investor confidence and market breadth.

Former trader Turney Duff said money managers expect some misdirection from salespeople in all markets.

Read the full article at http://www.bloomberg.com/news/2013-01-31/ex-jefferies-arrest-shows-market-lacking-transparency.html

 

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