Securitized Credit Bid-List Volume Hits Highest Level Ever
March 18, 2020
Securitized credit markets have seen the highest volume ever of so-called Bids Wanted in Competition, or BWICs, for sale in the secondary market over the last two weeks, according to data from Empirasign Strategies. "We're seeing that the volumes are so high that a sizable portion of these BWICs are not even receiving bids," said Adam Murphy, founder and president of Empirasign, a firm that tracks capital markets trading. "There just seems to be a universal race for cash." This includes BWICs across ABS, CLOs, CMBS, and RMBS, Murphy told Bloomberg News. Last week saw 1,018 structured-finance BWICs up for sale, the highest number ever, according to Empirasign. Each BWIC is a bid list containing many different bonds, often from the same asset class. This week has already seen 711 BWICs attempting to trade in the secondary, "and it may be on pace to be the new No. 1," Murphy said.