Search results

Again I think you are misunderstanding. You initially talked about Russia's prospects of becoming a financial center, and my comments were about how the legal system protects investor rights. The examples you point to are related to how the system protects taxpayers, a country we were(are?) at...

No offense, but it sounds like you are confused about a few facts. The judicial system is not able to impeach presidents or vice presidents in the US. I am actually very familiar with these companies and there is no comparison with Yukos. If you understand debt tranching, Freddie and...

Banks do not generally borrow at overnight rates and lend for 30 yrs. That's how the S&L's got into trouble. If they are in that position they will do some interest rate swaps (or something similar) to synthetically lengthen their liabilities. So their effective borrowing costs are much...

Sometimes I think this thread is somekind of turing test and I am getting suckered in.

Quote from southamerica: . a great prospect to develop financial markets ... I would think the judicial system and poor investor rights protections would scare away a lot of capital or at least make it expensive. There is a decent amount of academic research showing there is a strong...

ATLien's regression post made me think of something I have seen used in other applications that might help. There is a technique called an unbiasedness regression that is used in price discovery analysis. There are probably different versions of it, but the main idea is you regress a return...

Can you name any historical currency devaluation without default with consequences as severe for the country as the mildest actual historical govt default on record? I would much rather live in the US when the dollar dips than live through an actual default anywhere else. The interest...

So our brilliant plan to depress the economy until the Brazilians leave is finally working! How long until we can start growing again?

There is nothing theoretical about my point, and I did not mean to say arb would make the prices fair. I am not even arguing that prices are fair, I am just saying there is something missing from your story. It is fact that a long who doesn't want oil has to sell to roll, and by a deadline...

You missed something here. If you are selling to roll close to expiration, why is the other side buying from you? In your trend story, the trend has to attract speculative shorts as well as longs for it to work like you say, and I don't see why this would happen. If there are more...

Thanks DMO, good explanation.

I mostly agree with you but I still think I am right that the Black model assumes there is no cost to hedging the option in its derivation. I am not usually this anal about esoteric crap but I need to know this anyway so your post prompted me to review it. Both models assume a hedged portfolio...

I am not sure what CBOE does but you are supposed to use Black's model instead of Black-Scholes for options on futures. I don't have time to look it up now but I think the difference is that the no-arb relationship in BS assumes you need to invest capital in the underlying (so there is interest...

Have you confirmed that they both get the same tax treatment? It has been a while since I have looked at preferreds but I remember finding different issues from the same issuer with different tax treatments of the dividends.

You commonly call a trade a buy if the buyer is initiating the trade/taking liquidity/paying the spread and vice versa.

Silver was different. The Hunts played in actual silver as well as the futures. We are assuming the evil oil speculators only trade in the futures and swaps market and don't have a way to store real oil. That still doesn't mean oil is not a bubble, just that the footprints we think we would...

Right, but as long as there is some open interest at delivery time on expiration day the price has to settle to where real buyers and sellers agree to exchange oil. C will not sell to A if C wants oil and $70 is lower than spot. And if A has oil to sell, he won't cover his short if $70 higher...

I don't know, maybe someone with more knowledge of that world can answer. I have friends who have done the NY BB thing but I have not - I thought about trying but did not want that lifestyle. My impression is that it would be taking a different path, not a step backwards or forwards...

I think this would be better preparation for a portfolio management job than a trading job, but sometimes the line between the two is blurred. And remember your first job is not usually what you do forever anyway, so I would not overanalyze it if it sounds interesting and is your only offer...

I think this sounds like a good opportunity. I know a guy who works for a state pension fund and is getting very good experience. He is basically picking/monitoring managers and asset classes, and running models. Not making the decisions, but getting alot of input. Sounds fun too - he gets...