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Yeah, I believe that's the case, if EMU dissolution actually takes place. Obviously, there are all sorts of risks arnd this, such as the possibility that Germany switches to NewDEM, but leaves its existing bonds in EUR. However, I believe the chances of that are extremely low. So...

It's PBGC, not PBGA.

Well, I would say that both gold and Schatz are pretty good tail hedges for the EMU blowup (gold especially so, given you're a CB and need a degree of diversification). I am not sure what you mean about the Schatz. Being long Schatz here and now is more or less equivalent to being long CHF. I...

How do you figure that? Given that the only thing that this paper has done is go absolutely offer-less up to now, what makes you think it can only fall in value from this point onwards? That's logic I don't really understand... Furthermore, German schatz trades at smth like -40bps in repo...

Ah, so why do you think is this paper trading at 15bps yield, which is richer than pretty much any other short-dated govt bond on the planet (2y JGB is at arnd the same level, but then the JPY O/N rate is 20bps lower)? It also happens to be the lowest yield that this paper has ever traded at...

But the SNB isn't really buying EUR the ccy. As a CB, they can't sit on a pile of Euros... All the EUR they buy are used to buy short-dated EUR-denominated bonds (that's just how CBs manage their foreign ccy reserves). And, guess what, the SNB only buys German short-dated bonds. And oh have...

Why exactly is this knife-catching and why exactly is it a problem for the SNB? Could you kindly explain this to me?

I do everything, mate... Wherever there's jooose to be had, I am there. At the moment, don't see anyting too exciting, tbh.

I think I wanna crawl into a corner and cry now...

I do sometimes... There's occasionally nice juice to be found.

Nah, I just got busy with all the other sh1te, tbh. Apologies.

Hmm, is this a trick question? Let me respond with all due seriousness, though. It's because you are, in fact, ignorant. That wouldn't be a problem for me at all, if you didn't combine appalling ignorance with totally unwarranted arrogance. [B] No, I don't, because it would be a waste of...

So, just out of idle curiosity, in this particular example how do we know that this is "the leeches sucking blood"? Couldn't it be that we're just so good at making laptops cheaply and efficiently?

Indeed...

You might discover it's actually a male goat...

Yep, like the previous poster said, the 2nd year coupon should be discounted at the 2y spot rate. What you're trying to do is use the 1y spot + 1y 1y fwd, which is backwards (because the 1y 1y fwd rate is calculated from the 1y spot and the 2y spot).

I wonder if there have been cases of the CFA institute publicly disowning one of their own (for reasons of that person being a total muppet)?

The CFA Institute would not be happy with this sort of talk right here...

So would I... Swan's all right in my book (I mean that in the manliest way possible :)).

Well, there you go, mate... You and I are in agreement and we're both likely to be bullet bid for thargs of NDEM/EUR. That's why German bubills are trading where they are.