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It's spreading to all semi-core now, incl Belgium, but it's relatively mild for OLOs, so far. France is quite stable, though.

You're right, he's not referring to the cliff-like withdrawal of funding that may result from downgrades, but rather the relatively gradual deterioration in the capitalization of Greek banks. However, I don't think this is actually that big of a deal. I don't know about other types of...

Nah, their ratings standards vary depending on whether it's guvvies, corps, ABS or smth else. Haircuts also vary... What I am saying applies solely to Greek govt paper. If the Greek sovereign rating suffers further, the ECB will not hesitate to lower their ratings thresholds for sovereign...

There's no question in my mind what they will do... FYI, it's another total bloodbath in periphery today. Spain, Portugal, Italy are getting absolutely mullered, esp the short end.

You need to create a continuous futures price time series. Several different ways of doing that exist.

You looking for something like this baby here? http://www.euronext.com/trader/summarizedmarket/stocks-2783-EN-FR0010405431.html?selectedMep=1

Answer isn't Capitalism, it's 42. Everyone knows that... Speaking of which, the questions you ask are subject of much speculation by science fiction writers. They are much better at these things than economists. Some are even downright brilliant...

This sounds like the kind of thing that the leaders of the Soviet Union used to say... Regardless of its merits/flaws, capitalism, broadly defined, is the most viable practical solution we humans have come up with so far that allows us to organize our collective economic and social existence.

The $600trn number that is referenced in the original BIS article is, in fact, OTC. I was referring to one of the estimates that was given in one of the other threads.

Exactly... So why we willing to listen to useless journalists, who, instead of presenting a meaningful analysis, engage in sensationalist scare-mongering? Does that actually add to our insights into the risk the system contains? In my view, it only serves to muddle the issue and make the lack...

With all due respect, I am not missing the point of these articles. As I have said repeatedly in the other threads, I never argued with the statement that the banking system is leveraged. However, you are missing my point. I am saying that one should not accept estimates of leverage based...

I have already done it in another thread, maybe even two threads. Here's one: http://www.elitetrader.com/vb/showthread.php?s=&threadid=172200&perpage=6&highlight=eurodollar&pagenumber=1 Here's another...

Looks a little Greek, doesn't it? In general, I agree with Macro Man, who put it very nicely indeed: "...it nevertheless offers a strong suggestion that after more than two years of being on the receiving end of public largesse, the financial sector (and banks in particular) may now face...

As I keep saying over and over again, the gross total notional amount of $600trn has nothing whatsoever to do with how much derivatives are worth (the NPV) and what risks they represent. That is about as trivial a fact as you could get.

Well, yes, in theory, but it's a mkt. It's not, contrary to what the Greeks might say, a schoolyard, where there are these bullies that push other people around. In my view, what's happening here is not speculators driving yields a particular way. This is about real-money, bank repo desks...

Portugal and Spain have been flying already, Ivan... Problem with Portugal is it's not clear how like Greece it is. There's not much research/info on it, so for all we know it might be tarred with the same brush for no good reason. Or it could be a dog. Hard to tell... My money's on Spain...

That's silly... Derivatives are NOT worth $600 trln. How many times does this have to be said?

Nah, I believe that it won't...

Well, USD LIBOR fixing is up 0.3 today. However, LIBOR/OIS is holding and is even a bit lower in EUR. As I said before, I am fading it a bit myself.

I'd say that you should be able to do a bit of cross-hedging of some cpty risk, assuming you can have multiple accounts. Obviously, this may in itself be capital-intensive, so there's a tradeoff. Then there's also a question of what the best cpty risk hedge might be.