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...
Highlights of Barack Obama’s speech at G7 summit
Jun 10, 2015 06:03 am UTC| Insights & Views
President Obama speaks at a news conference at the conclusion of the G7 summit at Schloss Elmau in southern Germany. The fight against Islamic State Sanctions against Russia Greeces debt crisis FIFA bribery...
Johannesburg in a time of darkness: Ivan Vladislavić’s new memoir reminds us of the city’s fragility
Economist Chris Richardson on an ‘ugly’ inflation result and the coming budget
Biden administration tells employers to stop shackling workers with ‘noncompete agreements’
IceCube researchers detect a rare type of energetic neutrino sent from powerful astronomical objects