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Trading volume for baby bonds is generally thin, so the bid-ask spread -- the difference between the asking price and the offering bid -- may be wider compared to more heavily traded securities. In other words, they're not backed by any underlying assets or collateral.
This has left several friends who arrived more recently searching fruitlessly and losing the inevitable bidding war for each uninspiring property, over and over again. The only problem was, so was everybody else: a bidding war was already bubbling up and we only had a few days at most to lock it in. You end up with $200,000 invested.
We spent weeks, night and day, studying it, decided it wasn’t a good deal, decided not to bid, which I’m fine with. And then when we decided not to bid at 90, it eventually went up to, you know, 111 or something like that. And you know, so we looked at it very hard, decided not to bid. KLINSKY: Yup.
Somehow no one in duediligence ever asked them about any of this. And not being able to tell them or show them makes it harder for them to do duediligence to understand how it may have behaved. And by and by the agreement, I wasn’t, I wasn’t even supposed to be in the equation at all. No one knew who I was.
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