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Good god, I just couldn't stand this any more... No, there are no options on BTPS and OAT futures. People who want to hedge these positions buy/sell cash BTPS and OAT. The further you go in the credit spectrum, the less the trade will have to do with interest rates. That means that...

Haven't looked at those, so not sure... I was thinking going long outright.

It would be unfortunate, but maybe it's time the mods moved this thread into the P&R forum?

I am very happy to have a discussion like this, folks (MK & achilles)... I am in the middle of something at the moment, but I will happily respond later on today.

I agree... I think it's a cheap blowup option, personally. I am referring to DXY.

Two main categories: 1) Provision of public goods, aka issues that have to do with negative externalities 2) Monopoly issues I dig up a few. Pls bear w/me.

That is not the case and there's an abundance of research to demonstrate that. I can cite you some, if you like.

Who says micromanage? Everything in life is good in moderation... Overregulated, micromanaged capitalism doesn't work, but neither does fully unfettered, unregulated capitalism. The trick, as usual, is to find just the right mix.

No, that's actually not a subjective observation, but a statement of fact... Deficiencies of capitalism are well known in economics, just like deficiencies of democracy are known in politics. This isn't to say that there are superior alternatives, but one musty be aware of the imperfections...

Because capitalism isn't perfect...

Zut alors! Sacre bleu! How you say in ze French "Me love you long time"?

France 10y is arnd 2.5bps tighter to Germany apres Hollande, CAC up arnd 0.2%, with the Dax down %0.5. Caveat: UK bank holiday today, so very little actual flows.

That is a concept that is only accessible to CFA curriculum experts, like bwol. All others need not apply.

The participation rate isn't only a function of the economy. It's also a function of the demographics. Sociologists have been forecasting a general decline for a while now. With that in mind, there is still no doubt that the realized numbers are worse than expected. You can read an couple of...

Please stop the bullsh1t politics in this thread, gents (or ladies?). Politics belong in the other forum. Furthermore, anyone with a shred of common sense would know that most really wealthy people in the US (with a few notable exceptions) make sure to donate and support both political...

Not really... If we take Greece as a guide, there was only a $3bn net sov CDS position out there when PSI occurred. The volume of derivatives is still dwarfed by the size of the bond market.

CDSs are contracts that are governed by the ISDA Master Agreement. You will need around $100k (rough estimate) to pay lawyers who will negotiate the terms with your counterparty. Once that is out of the way, for a naked short CDS position you can expect to post a minimum of arnd 10% of...

There's always holdouts. Every time it's different and depends on the outcome of a lot of negotiations.

Yep, the Nomura paper is one of the latest iterations. There were a lot before that including the working paper from the ECB chief legal counsel: http://www.ecb.int/pub/pdf/scplps/ecblwp10.pdf Unfortunately, while one can try to construct many scenarios, this really does belong in the...

No. Go open an IB account (I presume they offer ASX futures), buy Aussie 3y bond futures, sell a strip of IRs (or IBs). That's the closest you can get to sovereign CDS. Given that you don't seem to comprehend exactly what you're doing, I am pretty sure you're equally certain to lose money in...