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The long bond future is NOT just a derivative of the 30y bond (which, by the way, the current 30y will eventually become the old 30 and another newly issued bond will become the 30y bond). The long bond future has a deliverable basket and contains a delivery option for the seller. The long bond...

This is the point you make that I really have a hard time understanding. First, I disagree that the Fed is doing a 'trade'. The Fed is effecting monetary policy. It is not trading for the US Govt Prop Account. Second, if any policy action they take is successful - then rates will necessarily...

Why is that a curve trade? The Fed (rather - more precisely, the Treasury) has a certain duration target in mind and also issue to ensure certain amt of regularity and liquidty in benchmark points on the curve, which in turn encourages better market participation. The US is not alone in pursuing...

Isn't it more of a problem if the Fed did a trade? The Fed is not suppose to be a hedge fund; Nor is it suppose to make money. It's dual mandate is price stability and economic growth - not making PnL for the US Govt; Isn't the general idea that, if the Fed creates a loss but generated...

Frankly I think you are intelligently arguing a useful point. I wish more ET threads go this way. Why do you think QE2 is creating a leverage bubble. By any measure, neither consumer, or indutrial, nor financial sector leverage is high (or even growing at all). The latest few Sr Loan Officer...

Okay, but if the point is to great an asset bubble (*), then why does it matter if it's MBS or long bond, or short bonds? In fact, wouldn't another large scale purchase of MBS effective crush the liquidity that market while the disruption to the treasury market is far less? (*) In some sense...

Not quite correct... a recruiter is more like a real estate broker; He wants to make a deal and get paid. The employer doing is paying doesn't necessarily means he works only for the employer - since unless he can find the right candidate, that alone doesn't earn him a fee. However, like a real...

What line of business are you in? It's really interesting... it's definately not the norm in finance.

I don't know what kind of a-holes you've been running into but my experiences (and the norm for my industry, which happens to be finance). So essentially these aren't headhunters that want you as clients, but has clients that they want to put into your position... given that they get paid...

The chinese currency is pegged to the dollar. I would hardly call that as 'owning' its currency in your sense.

Okay - let's leave a side the scumbag scamers that are in any business; Why would they call your existing boss? What do they have to gain? I've used headhunters before. Successfully. But there are many types out there - the good ones find you;

What in the world are you talking about?? He didn't exactly spend his life cracking the lottery; And if you read the article (which i suspect you didn't), he realized there's no money to be made fairly quickly and moved on. He has a day job as a geological statistician. What have you done to...

And who would these people be? FNMA 5 2/13/17 is currently trading at 110.8563. But equity is another story...

They addressed your (*) point in the article. And I think it was $600/day, not hour. In any case, your point stands: it was the maximum he could make and probably not sustainable.

Christ... you aren't too bright are you? You seem to miss the part that really makes him smarter than you: after he figured out the pattern, he calculated the potential return on his time for doing this, figured out it wasn't worth it, and walked away. Only if most of you folks figured that...

If you initiate both the long position and the short position at the same time and in the same number shares, then your winner's profit will be exactly the same as your loser's losses (less t-costs). So clearly this is not what you mean. If you hold more long than short or more short than...

Sorry if I'm being dense - but what's the difference between long and short the stock at the same time, and netting the position?

Well it has significantly less duration than the 10y and 30y, so it would have to be less volatile by definition

It's called doing work. Do you come from a future where the United Federation of Planets has already freed us from resource constraints and we live in a communist utopia?

Wait wait, it's only voluntary when you don't get paid for it? You are saying that no one can act by their own volition if they get something in return for it? By that logical, who is not a slave?? Confused indeed....