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Converts are not always necessarily negatively convex wrt to yields. As to mtge product in CAD, there seems to be all sort of Canadian MBS, guaranteed by the CMHC. Look here for more info: http://www.cmhc-schl.gc.ca/en/hoficlincl/mobase/index.cfm

The most fundamental part of the Dutch system is that it only grants indexation (i.e. pays out in line with inflation), if the pension plan in question is adequately funded (as defined by the coverage ratio). If it isn't, the pensioners don't get paid (as far as I know, neither does the pension...

Straddles, with a procedure to adjust the delta and/or roll the strikes... Big problem is transaction costs.

The situation is even more fun-tastic in the UK. On top of the public sector pension insolvency issues (local councils, Royal Mail), there's also problems with the legacy defined denefit (DB) pension schemes that are, arguably, bankrupting British Airways, British Telecom and other, otherwise...

This is what it's like everywhere in the developed world, Misthos. There are some possible solutions (for example, the Dutch pension system seems to work relatively well, compared to the really dysfunctional cases like the US and the UK). There's work that's been done on quantifying the...

Well done and good luck!

Hmmmm, doesn't this also assume that the Federal govt has no tax revenue going forward?

Come on, GoC... You know better than to ask a silly thing like that. It makes all sorts of difference and you should know that.

FWIW, this rings true... I think tt is legit.

Oh, this really really hurts!!! You got me!!! Yes, I am the Secretary of Education, here to make sure that you learn your basics, before you brave the scary world out there :). Seriously, though, I completely agree. I should not be wasting my time posting here, but, I confess, this is a...

This chart of "absolute performance", even if it's true, is meaningless without some indication of how much risk you've been running to achieve these returns. Why would anyone care about returns is beyond me. The only thing I care about is risk-adjusted returns.

I am with makloda on this... In particular, I expect the Eurozone to slip into Japanese-style deflation for at least a few years. The amount of excess capacity is staggering, fiscal tightening is almost inevitable and the central bank is likely to tighten the screws at least to some extent.

If you want to read a nice blog about the state of affairs in the Eurozone, try this one, it's really good: http://fistfulofeuros.net/ As to UK and Greece there's no comparison, really. Manufacturing-wise, UK ranks seventh in the world. Moreover, given their ability to print the ccy, they...

+1

There's no such thing as an "ECB minister"... Nobody knows how the dissolution of the EUR can happen. In fact, according to the current legal framework, it's likely to be impossible.

+1

As someone pointed out, Albert Edwards and Dylan Grice have been beating this "end of the world" drum for a while now. Neither can be described as "French Banking Chiefs". They are global macro strategists and it's worth knowing that often, in their biz, the more outrageous you sound, the more...

The IndyMac/OneWest/FDIC video is factually incorrect, in a variety of ways. It's not just me saying that. It's been pointed out by a variety of serious people who follow the housing mkt, including CalculatedRisk etc.

You're wrong, my friend. You don't need to take my word for it. You can check all the aspects of your PNL yourself very easily by using a simple option calculator that is trivial to create in Excel. If you want to, I can send you a spreadsheet. This is, in fact, exactly what I did when I...

I don't think I said you were clueless. If I did, I have apologized already and would be happy to apologize again. I lost patience for no good reason. What I did say was that you're not willing to listen to what I am saying. This implies that, regardless of our respective levels of...