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Rates don't matter... It's all about what they do in the LTRO. That's likely to be a VERY big event.

I hear there's a few properties in Detroit going rather cheap these days...

Too juicy for me, I'm afraid, and too many unknowns.

Fine... Why don't you make me a mkt in a vanilla Mar10 124 call? Then we can proceed further...

You can't do exotic options on the bund. Period. Bund isn't the wonderful world of FX.

You get paid for being short gamma. You can't mitigate the risk of short gamma strategies and still expect to get paid (doing flies and other "lower risk" short vol strategies simply means you get paid less). A very appropriate expression from the world of FX offered by my fellow poster in...

What sorts of exotic options on the bund are you going to trade, pray tell?

He's a good guy with some very particular views. He used to be a member of the MPC and his Maverecon blog is quite good. I especially like his assessment of his new employer as "a conglomeration of worst-practice from across the financial spectrum." See here for the full post...

I have no view on LIBOR here... It's not a mkt rate any more, really. Moreover, it's not too far from NYFR, which makes me think it's relatively fair.

At the end of the day, it's true, Dubai turned out to be a damp squib, but there was all sorts of movement during the day (see attached)...

I hear trsy bills are all the rage these days... Seriously, what sort of fixed income are you referring to? Corps, guvvies, or something else?

IMHO, the answer is nothing much, 'cause most of these are well known and have been provisioned for... The Riksbank has been doing regular stress tests on Swedish banks and finding nothing to be excited about. The Hungarian story has been overhyped, to begin with, as there's not that much...

The OP's definition of leverage was "for $1m equity they can loan $11m deposits". That makes no sense, as both deposits and equity are liabilities. You can't define leverage like that. If you want to define leverage, you can look at the ratio of assets (i.e. loans) to equity. The bank run...

Haha, this is one funny post... How in God's name do you "loan out deposits"? Why does having "electronic credits" help? How do money growth statistics tell you that things "aren't healing"? And, finally, the most burning question of all: why do you love to make statements like "if the...

Firstly, there's not that much CDS on Nakheel or Dubai out there, as far as I know. Apart from the fact that EM CDS is not that big of a mkt in the first place, the bonds are predominantly held by real-money investors. Secondly, the idea that countries like Russia, Turkey, Hungary and...

It's a very crowded risk-on trade (Mrs Watanabe is heavily involved, it seems)... When a wobble like Dubai happens, it suffers more than many other trades of that nature.

Well, this one proved rather painful... Stopped out, but the pain lingers :).

NP. It fixed just 0.11bps higher today. Notice that the CDS chart shows most of the banks on the LIBOR panel (bar BTMU, Norinchukin, Rabo and RBC, I think), but there's all sorts of interesting dynamics that come into play due to the panel's flexible nature.

Daal, what you asked for is attached...

I certainly feel like a moron for participating...