Category: Derivatives
The analysis published under this category are as follows.
Tuesday, September 25, 2007
The Genesis of Over The Counter Interest Rate Derivatives / InvestorEducation / Derivatives
By: Rob_Kirby
Misinformation regarding the origin and genesis of the OTC Interest Rate Derivatives complex abound in the market.
During the 1970's – after President Nixon took the world off the gold standard - the dramatic increase in the price of crude oil led to burgeoning balances of petro dollars [Euro-dollars] in the treasuries of banks involved in international trade. This immediately led to banks bolstering their treasury operations to deal with the influx of ‘inflated dollars'.
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Tuesday, August 14, 2007
Diverse Asset Class Correlation and Leverage / Stock-Markets / Derivatives
By: Paul_L_Kasriel
Fund managers and investors have been puzzled why prices across a wide spectrum of assets moved together last week - namely, down. I think it has everything to do with delevering. What is bringing about delevering? When a fund owns assets that are going down in value for some fundamental reason, say mortgage-backed securities whose underlying collateral are defaulting subprime mortgages, and the fund is levered, its creditors start to make margin calls.
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Thursday, June 21, 2007
Fools Gold - Risk of Shorting Stocks 130/30 / Stock-Markets / Derivatives
By: Paul_Petillo
Risk is an interesting topic for investors. The balance between too much and the right amount are often fraught with problems, not the least of which is cost. But what happens when you openly embrace risk, stepping outside of the norm for the goal of increasing returns?
Pension plans have often found their ability to increase returns for their funds locked behind the rules of buying long. Buying long simply represents the purest marriage of research and instinct. Success was measured against traditional benchmarks such as the S&P 500 and it was against those indexes that fees for running funds were generally compared.
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Wednesday, May 30, 2007
The Bank of Montreal Follies, the Mainstream Media and More.. / Commodities / Derivatives
By: Rob_Kirby
These guys should take this comedy routine on the road. It was just 10 days ago that I penned a piece called, Derivative Disaster: Deriving the Truth , where I commented,Read full article... Read full article...