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Kitno


Total Posts: 341
Joined: Mar 2005
 
Posted: 2017-06-18 00:36
Is it feasible for me to find cheaper custody costs than 6bps per annum (on MV, not notional) for a large, >500MM HY USD denominated bond position?

Not your usual pricing question!

EDIT: Thinking 2-3bps is potentially achievable although equally I can see why that's very punchy. This is the sole service I want from the custodian (term holding of the single security with no secondary activity).

Salut toi, je vais au Social Club avec des amis ce soir, c'est au 142 rue Montmartre. J'ai mis ta robe préférée. Viens me trouver.

HitmanH


Total Posts: 423
Joined: Apr 2005
 
Posted: 2017-06-18 11:22
you're on the high side - but not over the top.
2-3bps is indeed punchy if single service - but you should be able to shave 1-2bps off the current price..

Kitno


Total Posts: 341
Joined: Mar 2005
 
Posted: 2017-06-24 01:31
Thanks HitmanH, I am targeting 4.0-4.5bps.

That said, and to rip another post from Nonius, pretty much, all roads lead to Rome on this.

Salut toi, je vais au Social Club avec des amis ce soir, c'est au 142 rue Montmartre. J'ai mis ta robe préférée. Viens me trouver.
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