Jun 10, 2015 08:22 am UTC| Insights & Views
German 10 year bund has finally hit the level and beyond, what many on the market was calling "the magic number" 1% yield. Euro got the necessary boost from rising yields, though long term yield usually doesnt move...
Short Hedging on German treasury bunds
Jun 10, 2015 07:59 am UTC| Insights & Views
Short EUR 6M 10y treasury receivers call, 50 bps Out-of-The-Money options on bonds or equivalently Sell receivers swaption on rates an option seller is naturally short volatility.But in a bear market when prices are...
RBA Governor Stevens provides dovish verbal intervention
Jun 10, 2015 07:52 am UTC| Insights & Views
While Reserve Bank of Australia (RBA) delivered neutral statement on June 2nd, RBA governor Mr. Stevens was far more specific today over monetary policy expectations and Aussie exchange rates. Mr. Stevens cleared the...
Put replication proved more effective means of hedging
Jun 10, 2015 07:21 am UTC| Insights & Views
Well indeed with German bunds, What if the other way round.Lets visualize a scenario where German bunds did not fetch this much yields and curve would have been narrowed. In which case the fund manager who would be...
MSCI says no to Chinese stocks
Jun 10, 2015 07:06 am UTC| Insights & Views
MSCI has declined to include mainland Chinese stocks to its indices. Though recovered, the decision provided a jolt to Chinese benchmark stock index CSI 300, which was down more than 2% after the decision. Though...
Trade laggards can deploy momentum strategies on German treasury bonds
Jun 10, 2015 06:53 am UTC| Insights & Views
The timing of a rise in interest rate has been a double-crossing theme. Yet bond sell-offs arise, badly hurting fixed income and global macro portfolios.What relief can be found in systematic strategies? To what extent...
125 Dollar-Yen uncomfortable even for BOJ
Jun 10, 2015 06:30 am UTC| Insights & Views
Though exchange rate is not a policy tool of Bank of Japan (BOJ), that didnt prevented Governor Kuroda to comment on it. According to Mr. Kuroda, further decline in Yen against dollar is unlikely as yen is already very...
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