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Yes, I would be happy to go through this exercise and get some data together. However, I don't want to do it if it's futile, as I pointed out. Hence my question to you. Would you care to answer?

Spain hasn't avoided anything... It's just that Italy has joined the party, that's all.

Sure, dude... We can have a meaningful discussion about this, as it's an interesting topic. For the record, I disagree with your disagreement :). You're certainly 100% right to bring up the various issues that make the German economy vulnerable. However, I think that the good things they...

It's still a broken fly, as far as I am concerned. What do you need a book for?

Well, more likely a banking crisis in Poland and Hungary, if you ask me. In general, this is just one problem. There's also a lot of structured notes issued by various EUR municipalities that makes them short EURCHF and short EURCHF vol. It's a sh1tshow, all around. It's too late for me...

Anything and everything is possible. There's no rule in the mkt that promises a negative correlation between bonds and equities 100% of the time.

Haha, now that is super funny... You come here asking questions, you have absolutely no clue what you're doing, and yet you know enough to argue with me about duration. Do you actually know what duration is? And yes, you're right, I don't know what your strategy is, 'cause you haven't...

I try to do that before I post. I am not sure I can open my mind more than I have already done. As you may have observed from my posts, I am relatively free of political, religious, etc biases. [B] Hold on, does this mean that, provided sufficient evidence, you are willing to change your...

A veritable gem from Joe right here!

Well, it's kinda simple and I think you're a bit confused. If you have the current prices for the bonds in the basket and you have the repos to delivery, you can calculate the forward prices for all the bonds. Then it's relatively straightforward (apart from some optionality issues) to...

Germany is not a problem. France might be.

Yes. [B] No. [B] Maybe.

Well, if you feel that these commodities are liquid enough (gold is, I guess) and that you can achieve sufficient diversification that way, sure.

Also, I should definitely note that, with all inflation-linked bonds, there's also potential that a sufficiently dysfunctional government may be tempted to "massage" the calculation of the index, thus defrauding investors. This is certainly not the central scenario with TIPS, but the...

I dunno, maybe I am hallucinating, but that's just a bunch of total and utter nonsensical drivel. Moreover, it's just an unexplained assumption that the curves look the way they do. Actually, the more I look at it, the more silly it all looks. I mean why the heck does the "very high...

Indeed... The most important thing that people often miss about TIPS is that a TIPS, while inflation-linked, is still a bond. So the only thing you can be somewhat certain about is that TIPS will outperform nominals during inflationary episodes. Whether TIPS will rally or sell off in absolute...

I would always treat anything posted on ZH with a very large pinch of salt, myself... Can you post the link? I am curious about how they arrive at their conclusions. In general, it's clear that the yields in the front end go to infinity and beyond. Further out, much will depend on your...

If the mkt seriously doubts the long-term creditworthiness of the US as a result of the default (i.e. it's perceived as a more "real", rather than "technical"), TIPS underperform nominals, because TIPS is a more credit-intensive instrument, by construction. If the mkt believes that the...

Say what? What ideological bullsh1t? What did I co-opt? Where did you get the "foot in mouth" thing? At any rate, this is getting tedious and uninteresting. I fear we're never gonna agree, so let's just leave it.

When did I say I am unwilling to answer? I am perfectly willing, once the person who asked the question, i.e. jem, tells me what he knows. For example, it's important to realize that a TIPS, regardless of its inflation component, retains a whole variety of nominal features.