Search results

Haha, you guys are funny...

Yep, thx... I think this might be the usual case of the press getting ahead of themselves. I don't think this is the case of them being naked short. I think they fell victim to the same thing that killed DEPFA (Hypo Re) before them. So, as always, death by funding or, rather, lack thereof.

Hahaha, thanks, I'll try to get someone to translate. Thx a lot!

Could you pls send a link?

Huh? Where did you hear that?

Nah, it's the actual yield spread between the where the current existing EFSF issues trade and the comparable maturity bunds.

I think sle once posted smth about this... I am not sure it makes sense to try doing this with everything minimized, as it will be too costly. I generally like to do 1x2s, but there are no hard and fast rules.

Well, given that Greece is part of the Eurozone and its banks are part of the Eurosystem, there's clean "Iceland solution" for Greece. As the always excellent John Hempton explains here, http://brontecapital.blogspot.com/2011/09/models-for-greek-sovereign-default.html, it's sort of a rock...

What?

I am pretty sure it was done, effectively, through options (i.e. cheap CDS), so he couldn't have been down that much on it.

Like any other extreme "solution", this one's not viable. I wonder when people will finally realize that there are no trivial answers.

You must be really bored, mate...

Thx for your thoughts, gents...

Yeah, sorry, I suppose I should have been able to tell that Greece was out of place in that passage where you talk about Iceland. However, it wasn't clear, so I assumed you actually meant Greece.

And, for your viewing pleasure, I attach the history of Greek sov ratings actions (foreign ccy, L-T debt, S&P).

Sure, I am happy to discuss Iceland and Ireland and Greece, as, to quote the famous author again, every one of them is unhappy in its own way. However, my specific point was about your erroneous statements on Greece. I attach the chart of Greek Real GDP YoY (sa). Notice it hasn't gone...

What do you peeps think about yen here? Is there an expectation of some sort of intervention sooner rather than later? I confess to getting a bit excited and getting long a wee bit of NOKJPY.

That's actually emphatically untrue... Or rather it's only true in a stylized Black-Scholes framework where one assumes mkt completeness (for tractability). In fact, mkts are nowhere near that, which means that there's all sorts of not easily quantifiable liquidity juice in options that the...

There is no free lunch. There's no simple mechanical strategy in options that has decent long-term risk/reward characteristics. That's not to say that there aren't times when you can buy cheap options and/or sell expensive ones, but those aren't gonna be no-brainer trades.

Erm, I am not sure where you're getting this from, Ed. I hate to be the one to tell you that this just ain't the case.