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My guess is that the Schedule D-1 is wrong because a corporate action is treated improperly. I generated my own Schedule D-1 using TradeLog. When I finally fixed all of the corporate action errors, the broker proceeds matched the 1099 reasonably well. Maybe you should look at the...

I know liquidation will never happen as our government seems intent on doing as little as possible to upset the old order, but might the financial system heal more quickly if these two zombie banks were liquidated? My thinking was that if the banks were liquidated, that the former depositors...

What if McCain belonged to a white supremacist America hating church? Both candidates are getting passes on certain things.

Why would cutting executive compensation be worse than going bankrupt? Don't the executives stand to lose everything through layoffs and a stock price of zero if the company went bankrupt? It would seem to me that the power is with Congress and if they want to cut pay for participating...

Lo's argument is very good and his simple trading model of shorting yesterday's winners and buying yesterday's losers closely correlates to the publicly available data of stat arb hedge fund performance. What I would like to know is which hedge funds liquidated in July/August 2007 and why...

Freddie and Frannie guarantee trillions of dollars in mortgage backed securities, they don't actually own all of the securirties. The 850 billion dollar figure is referring to the value of the securities they are allowed to own.

My basic understanding of the matter is that the goal is for this browser to eventually become the OS in that as many apps as possible will run through the browser. This was Netscape's lofty goal many years ago. The browser and the languages are finally becoming sophisticated enough to achieve this.

I like to think that the retail equity traders will outmaneuver the big guys in the coming years. As theoddlot.net mentioned, we're smaller and can outmaneuver larger traders. Also, our costs have gotten low enough that the larger firms increasingly have less of an advantage. Except for the...

The Credit Suisse/Tremont Hedge Fund Index lists the following strategies: Convertible Arbitrage Dedicated Short Bias Emerging Markets Equity Market Neutral Event Driven Distressed Event Driven Multi-Strategy Risk Arbitrage Fixed Income Arbitrage Global Macro Long/Short Equity...

For equities, the black boxes were largely pair trading systems until maybe 2003. The strategies are more complicated now, but the principles are similar, meaning that they look for relative value.

http://online.wsj.com/article/SB121820203736224137.html?mod=hps_us_whats_news "UBS AG has agreed to buy back $19.4 billion in auction-rate securities from individual investors, charities and small businesses, a spokesman for Massachusetts Secretary of State William F. Galvin said Friday."...

I'm just a small trader with a market neutral system, and if I can't readily short shares through IB, I'm out of business. From what I understand, the business of locating shares to borrow is extremely primitive compared to all other areas of the equity markets. The way to pre-borrow shares...

It's slow and it failed to find some news articles I read this morning when I typed in key words associated with those articles. Google, Yahoo, and Live did much better.

If the whole system blows up, we're all in the same boat. It's not clear to me that you can really prepare for such a dire scenario. Maybe you can preserve some wealth with the aforementioned strategies, but can you secure all of the other basic necessities if everyone went broke? If you are...

I have heard to expect the pre-borrow rule for shorting to expand to the whole market rather soon. Cox openly said he advocates it in the WSJ.

Suppose there is some illegal naked short selling going on and the SEC action will put an end to it. Short term legal short sellers aren't stupid. They're not going to take the risk of a squeeze as the naked short sellers cover. Now all of the shorts cover and the stock prices pop. Continuing...

You can calculate the the covariance given the correlations and volatilities. Correlation(x, y) = Covariance(x,y)/Volatility(x)/Volatility(y) The fact that the optimizer asks for covariance versus correlation is not really an issue. I am curious how you calculate expected returns. I...

Try comparing the Masters of Financial Engineering from Baruch to the Masters of Mathematical Finance at NYU. I can tell with certainty that the NYU degree is worth a lot of money. Students get summer internships in the 50-80k range. I'm not sure if the MFE degree from Baruch provides similar...

I find myself reading this board and writing a first post because of the utter frustration of the last few weeks. I run a very small automated stat arb/market neutral equity trading system and I have some experience in the industry, but these days I work entirely alone. Back in July/August...