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Please, do share! I think these are current habits, so they still have it and spend it. It's post-regulation and post HFT. In fact, some of them actually are HFT PMs, probably. Oddly enough, over my roughly 20 years in this business I've seen only one crazy spender. The guy did blow up and...

Actually, the only enforcible non-compete is the one where they pay you while you are not working. In finance, for example, that means that the firm will continue paying your base salary while you seating out your non-compete period. I am surprised these people got railroaded over things that...

Not really. More like "it's complicated". Stochastic processes are a mathematical tool for modeling derivatives markets, especially non-linear ones. Most of the mathematics is pretty complex, but the general concept is fairly simple. When pricing a derivative security, it allows you to ignore...

on finance yahoo look here: https://finance.yahoo.com/quote/IBM/key-statistics?p=IBM

True :) it's too boring - short vol adds some spice to your life

The CNBC one? Is it a documentary?

Dude, think of it at the current asset prices. Assuming Brent futures it's about half a yard in notional terms. It's about a yard of spooz, give or take. Not a daily type of thing, but certainly not unheard of, especially for larger players. I've had days when I had to do 5-6 digit clips of...

Well, there are two factors in play there. First, people go to the Internet to get something they don't get in real life, in this case respect. Second, nobody real would give up the magic for free (I know I would not - everything I say here is stuff that's well know, I never speak of my...

If the guy was doing something smarter - single stock directional, earnings, maybe term structure across various ETFs etc, I'd not have a problem with it. With S&P vol, I just don't understand the value-added. You can sell S&P vol on your own if you have a high school degree, I'll teach you :)...

Seriously? They guy tells you to sell vol for 120 bucks a month is a good deal?

For junk bonds, there was a study (if my memory serves me right) that showed that proportional risk premium actual decreases as the yield increases. So that means that at some level you can't expect to have sufficient returns to cover the interest expenses (pay day loans come to mind in private...

Some of the facts in this presentation are a bit twisted, since it's essentially a sales pitch for the VRP indices for Nomura QIS. Just FYI. Short risk premium strategies work. Unfortunately, the drawdowns in short risk premium strategies tend to correlate with other unfortunate events in...

Corrected this one for you :) I am all for the leverage, but at the right price - credit card debt is certainly NOT the right price

To quote the original study here (page 14)...

Yeah, I was hoping to avoid that angle. There is an interesting paper on gender differences with regards to DK effect. You can probably guess the results.

I view it as an acceptance game. At this stage it could either fail and disappear or it could get accepted as a financial tool and appreciate by virtue of gaining use. So it's a cheap option and one should always buy cheap options.

I realized last night that what I most like about the show (and also what surprised me) is that they are asking the right questions about, erm, human nature in the institutional finance. Some 20 years ago my very first boss was telling me "Be careful, this industry has a way of stealing your...

Yes. I have switched from R to Python about two years ago and so far have not found anything that was lacking.

I think since S&P bought the GSCI indices, they have changed the roll methodology. Have not looked at it for a while so take my word with a brick of salt.

I finally read the original paper by Dunning and Kruger where they present the studies and discuss the implications. Dunning - Kruger effect is a bit more known now due to the behavior of the newly-elected upper management of this country, though this paper made it into my "to-read" pile way...