Recent content by simpleton

My point is that hedging and insurance can be a very grey area. The main difference with insurance is that CDS is a derivative of a financial insturment and is marked to market which means you have to post margin against your positions. As spreads move, the required margin changes and you can...

That means that a whole host of derivatives can be considered insurance. I buy a put to protect me on the downside to my stock. I enter into a dividend swap to protect my dividend on a stock. I do a variance swap to protect me against volatility...etc. There is no end to this line of...

There seems to be a lot of questions on CDS and some mis information. First they are swaps in the traditional sense that it is an exchange of fixed for floating payments. CDS have a particular feature in certain events (default, reorganization etc.) This is why they are not insurance...

I trade at a HF so I don't trade through the interdealer market. Most trades go through our PB except for some counterparties that we have ISDA's with.

Maybe this example helps: Here's a typical example from both the buyside and the sellside: I do my credit analysis and I think its a crap credit and that 5 year CDS trading at 200bps is way too tight. So I look at my Bloomberg and see that the dealers are making a market 195/205. I buy...

Agreed. What do u think about these markets? Broken?

Hi sjfan, Good to see another credit guy here. But I have to disagree with you on the above point that when you are long a CDS contract you sold protection. When I buy CDS or go long CDS I buy protection and am short risk. But if I'm long a credit then I'm long risk and have sold CDS...

uptick rule didn't prevent the last bear market and this naked shorting thing won't stop this one. Big HF's can and do use TRS and other derivatives to express their views.

Bloombergs BTST function is a joke

Not too much change overall. Should have waited another day to get out of wheat it looks like. Took profits in FNM but looking to reset shorts today. Also bot back 10yr UST and added a CL contract. No trades in FX, still long EURUSD for target up to 1.59 area. Will be delaying my equity...

The next move will be a cut. I think the market is completely wrong pricing in a 45% chance of hike by Oct. The Fed's hands will be tied by the continued stress in financials.

I've never been more bearish but trying to keep agnostic about actual trades and following the program. Account dipped to just over 100k but came back strong by the end of the day, currently at 126k. Took my small loss in Gold, small profit on GBP, added to my EUR, CL, ES, FNM trades...

HBOS rights issue that failed miserably and left Dresdner and Morgan Stanley holding nearly $5bn in stock very conveniently has a buyout rumor circulate today. Stock up over 10% on BBVA buyout rumors and comfortably above the 275 rights issue price. The ponzi continues... Meanwhile...

Tempted to get long, but i have a decent size wheat position here already. If corn rallies, wheat should do as well so I might as well keep it as is.

I'm tempted to switch my longs in Wheat into Corn here. I left so much on the table.