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The Credit Crisis Financial Stocks Short Journal
- Thread starter Daal
- Start date
That is what I heard, from a reliable source... Obviously, my information may be wrong, still.Quote from Daal:
Martinghoul said the dude blew up in 2008
In other news:
*ECB SUSPENDS GREEK COLLATERAL RULES `UNTIL FURTHER NOTICE'
http://www.ecb.int/press/pr/date/2010/html/pr100503.en.html
Quote from Martinghoul:
That is what I heard, from a reliable source... Obviously, my information may be wrong, still.
In other news:
*ECB SUSPENDS GREEK COLLATERAL RULES `UNTIL FURTHER NOTICE'
http://www.ecb.int/press/pr/date/2010/html/pr100503.en.html
I doubt he would be on the eurodollar calls given its inferior liquidity so I bet your information is correct. Good call on the ECB
Jesus Fing Christ, am I the only one who knows how to use google. And you CANNOT be serious with that line about the low volume in Eurodollar options. What do you think these guys do - log onto their IB account to trade? No, they are at an institutional level - they can call any number of trading desks and buy any number of call options their heart desires. I think you need to re-read Inside the House of Money.
http://www.efinancialnews.com/story/19-01-2009/sempermacro-posts-return-of
Hedge Funds
SemperMacro posts return of 50%
Mark Cobley
19 Jan 2009
SemperMacro, a hedge fund spun out of Fulcrum, the boutique of former BBC chairman Gavyn Davies in 2007, posted gains of more than 50% last year as global macro proved one of the few strategies to weather the downturn.
SemperMacro Capital, which is run by the former Goldman Sachs trader Christian Siva-Jothy, went through a bad patch in 2006 when investors pulled money following investment losses of 15.7%. The following year, Siva-Jothy and three colleagues â all former Goldman traders â spun it off as an independent venture and since then the fund has redeemed itself.
http://www.efinancialnews.com/story/19-01-2009/sempermacro-posts-return-of
Hedge Funds
SemperMacro posts return of 50%
Mark Cobley
19 Jan 2009
SemperMacro, a hedge fund spun out of Fulcrum, the boutique of former BBC chairman Gavyn Davies in 2007, posted gains of more than 50% last year as global macro proved one of the few strategies to weather the downturn.
SemperMacro Capital, which is run by the former Goldman Sachs trader Christian Siva-Jothy, went through a bad patch in 2006 when investors pulled money following investment losses of 15.7%. The following year, Siva-Jothy and three colleagues â all former Goldman traders â spun it off as an independent venture and since then the fund has redeemed itself.
Quote from Martinghoul:
In other news:
*ECB SUSPENDS GREEK COLLATERAL RULES `UNTIL FURTHER NOTICE'
This news comes under the category of "shocking, just shocking". I didn't really participate in the conversation, but found it laughable that daal wasted so many keystrokes arguing that this rule was worth more than the paper it was printed on. You've lost your moorings a bit lately, bud.
Quote from ralph00:
Jesus Fing Christ, am I the only one who knows how to use google. And you CANNOT be serious with that line about the low volume in Eurodollar options. What do you think these guys do - log onto their IB account to trade? No, they are at an institutional level - they can call any number of trading desks and buy any number of call options their heart desires. I think you need to re-read Inside the House of Money.
You need to re-read my post, I said INFERIOR liquidity
Quote from ralph00:
This news comes under the category of "shocking, just shocking". I didn't really participate in the conversation, but found it laughable that daal wasted so many keystrokes arguing that this rule was worth more than the paper it was printed on. You've lost your moorings a bit lately, bud.
Apparently you conveniently missed the part where I pointed sources showing the bank ratings affect their collateral requirements with private sources, furthermore the market of value of the debt also affects that and people sell bonds when they get downgraded. The sovereign rating affects the bank ratings. Sorry you were wrong again
Quote from Daal:
You need to re-read my post, I said INFERIOR liquidity
The bottom line is that if there was any "blow-up' by this guy, it was in 2006, when his fund lost 15%, and it had nothing to do with LIBOR blowing out. His new fund excelled in 07 and 08 when that would have been an issue. Its highly probable that he was able to stay the course while the spread was blowing out because he was long Eurodollar options, as opposed to being long Eurodollars. I'm sure you know someone at Merril or GS or DB ... Give them a call - these options trade in the tens of thousands, if not hundreds of thousands every day on the institutional level.
You believe there is a high risk of LIBOR blowing out, so you got out of your GE calls - that's fine, though I disagree. By the time these calls are settled, there is a far higher chance that the Fed jacks rates than there is any significant, lasting increase in the LIBOR/OIS spread. I think we can now call it resolved that naming this sort of thing Siva-Jothy is misinformed. Time to move on.
Quote from ralph00:
The bottom line is that if there was any "blow-up' by this guy, it was in 2006, when his fund lost 15%, and it had nothing to do with LIBOR blowing out. His new fund excelled in 07 and 08 when that would have been an issue. Its highly probable that he was able to stay the course while the spread was blowing out because he was long Eurodollar options, as opposed to being long Eurodollars. I'm sure you know someone at Merril or GS or DB ... Give them a call - these options trade in the tens of thousands, if not hundreds of thousands every day on the institutional level.
You believe there is a high risk of LIBOR blowing out, so you got out of your GE calls - that's fine, though I disagree. By the time these calls are settled, there is a far higher chance that the Fed jacks rates than there is any significant, lasting increase in the LIBOR/OIS spread. I think we can now call it resolved that naming this sort of thing Siva-Jothy is misinformed. Time to move on.
Good luck there, its not a matter of fear of a 'lasting' increase in the spread, its a matter of a sporatic increase there in the day of the settlement. This european crisis wont be over because of liquidity support and a promise of fiscal reform in a single country. Lets say Portugal blows up next, then Spain, then whatever, then someone else. If at settlement there is a blowup its going to hurt you
I dont view as smart to short that spread at its lows during a GSD crisis, the very governments trying bailout the entire world also promised to bailout the banks that borrow at the interbank markets, the market might try add more premium there