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Yes, you are definitely on the right track. Think of everything you do in rate space as a loan. In the example given the trader has an 18 month loan starting today (spot loan or a bond). The idea of the Eurodollar hedge is to offset this spot loan with a "chain" of back-to-back forward...

I wouldn't suggest anyone to retire in the UK, unless you're into rain, clouds and all that stuff. Personally, my dream retirement destination is a place with a nice sandy beach, cold drinks and sun all year round. Sorry if this is all a bit too common. However, living in the UK is a...

Yeah, I am definitely with GoC on this, although climate surely has to be a meaningful consideration (which definitely doesn't help the UK). I don't think UK is all that bad. I was wondering more about why you would say that the UK is a bad place to be born.

Why would you say such a thing?

Huh? Seriously?

Yes, I know what you meant. As I said, a Eurodollar contract is an IMM-dated, exchange-traded FRA (with a fixed notional and slightly different margining arrangements). There's absolutely no reason to bring FRAs into this, in the context of the example provided. It's not going to achieve...

The loan in question (the $3mil cash payment) is like a bond. That's the reason why you need to do a strip, rather than a single contract. This has nothing to do with playing the yield curve, cash flow streams, or long-term interest rates. And the Eurodollar future is a forward already.

I responded to you on the other forum.

That's a vol spread. A vol swap is something else altogether.

IMHO, it's much more difficult to do this than to trade outright spreads. For a variety of reasons. End result is that it rarely makes sense, unless, of course, you're actually trading a vol spread. My Z$2c...

I trade interest rates, mostly non-USD.

Yes, I agree with the theory in principle, but the practice is very difficult, I find... I imagine that, in the world of trading, it's actually quite hard to obtain all the information above. For example (and this is something I have mentioned before), some of the people who I think are...

You're mistaken, GoC... Kyle Bass himself (in his investor letters, regulatory filings, as well as media appearances) has stated that "short Japan" is a standalone high-conviction thematic trade for him. He has created and marketed a dedicated fund (Japan Macro Opportunities Master Fund or...

Yes. No, not too bad. Yes :).

Indeed, that is my understanding...

Your goals are understandable and admirable. I truly wish you the best of luck. And I have to marvel that someone on ET used the term "arete". Most unexpected...

I find myself intensely curious about this particular statement of yours. How do you define greatness? Who, in your opinion, is a greater trader? The one that has made more money for investors? The one who is wealthier? More famous? What exactly is the metric used for greatness? I...

"Wise men speak because they have something to say; fools speak because they have to say something" Plato

http://www.markiteconomics.com/Survey/Page.mvc/PressReleases http://www.ism.ws/ISMReport/PastRob.cfm

And this is precisely why nothing will ever change... The amount of vested interest is just too great. Since the crisis we have witnessed the lobby groups representing different parts of the financial markets (e.g. banking and money market fund industries) defeat all attempts at reform...