As I look at my quote screen, I see Claymore US Capital Markets Bond ETF (UBD) with a bid of $44.02 and an ask of $47.99 – just a little ol’ 9% bid/ask spread.
However, looking at the depth reveals more: There are only 100 shares available on either side of that that spread. The next bid is down at $43.84, and it shows 2300 shares. The next ask is at $48.20 for only 100 shares and another 600 shares are available for $49.00.
If you remove the first 300 shares, then the bid/ask spread becomes $43.84/$49.00, or 11.8%. It is obvious that no one is paying any attention. There are no market makers and there is no market for UBD. This was pointed out on January 16, when UBD had not printed any trades for 2009.
Someone needs to put this ETF out of its misery. They shoot horses don’t they?