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Originally Mav brought up the idea as a trade to go long a credit freeze... Sort of a cheap long put on risk assets... What kinds of long term views are you talking...

Your only throwing gas on the fire... I'm already wildly interested... A market where 1000 dollars enables you to lend a million in notional... I thought it was FF against t-bill for a sec and that made no sense to me.. My bad...

This obviously doesn't represent the same thing as the TED... what does it represent? So you can trade these one for one , month for month.. ?

Why would anyone wanna trade vol out that far you think?

What do you mean by trading against it...

Where do you trade the fed funds rate leg when trading t-bills against fed funds

Boy something's are so obvious you could hit me on the head with it.... I'm gonna go back and read some of the books recoed from earlier in this thread.. And hopefully come back with some reasonably questions

whats " trsy"

Hence basket risk... Its how any one kink.. Or bump could cause term structures risk as oppose to the actual treasury Eurodollar spread risk... It helps to differentiate those two risks

I know Dec in this example is arbitary.. But where do you pick the point, and why..

Ok.. Your rebuild the curve based on that fixed point in the curve (one specific Eurodollar contract) that has been bumped up 1 basis point.. Do you derive the changes in the rest of the curve by something relative to "delta" in options.. meaning you look at historical moves and come up with...

Bumping the curve.... I think I get it... I don't know linear algebra... But getting the concept is more important... Its all about making it to where the rate curves are normalized so that a parallel shift doesn't incur pnl

its obviously such a small part of ones PNL , I realize there are other risks much higher.. But if interest rates go up.. The price of options do as well therefore putting a Condor way out on the calender at risk of going up in price... So a long condor is in a very small way short interest...

The other side would be buying the IC from him... What was ambiguous about it... You more and more of a view on interest rates as you go out further in time... But superseding that is the fact that your selling tail risk when its super cheap... Tails being the tail of the distribution of...

Because of the strike risk..I don't like the directional aspect of it...but I don't trade direction..I was just wanting to see what the guys view was ... And if he even had a thought about the other aspects of the trade were implying

There is nothing there but advertising.. No news

Cool.. I understand that respectively.. What other structures express a view about credit risk... private lending against gov liquidity.. long credit freeze trade..

I don't understand what expression you are trying to make about direction or volatility or interest rates.. But you realize you are expressing a view on all those by trading in this respect.. Volatility at all time lows, and your trading tail risk way way out.. This makes absolutely no sense to...

Focus on the finish line, you never get there.. Lose yourself in the process, the finish line approaches before you know it.. Finish line being successful trading.. Nothing good comes easy.. I like FX for one reason.. You can trade very small, and gain confidence.. This you can not do in...