Just like your trading hero, you cannot admit to being wrong, even when you know that it is so. Creative indeed. You two have so much in common and must have a lot to talk about. "Eruditely," of course.
Thunderdog's correct. When i get caught in a mistake, I usually try to seal the wound before it hemorrhages. http://asiafind.com/blog/330/post_9079.html?dcb=asiafind&highid=19404106_52526
Man, tough crowd, you need a PHD to post here., although I appreciate the use of the words "dump" and "puke" as trading metaphors. Someone needs to start an ET trading glossary.
The difference is not only in the security, but also in the nature of the participation. In conventional lending, the creditor does not participate in any windfall upside, therefore, it is only fair and balanced that it should not have to participate in any unexpected downside. Quid pro quo, boyo. There's equity risk and then there's credit risk. Did I mention apples and oranges?
No, Surf is right...someone here is defending the ever-so-arrogant Victor. I'll never forget the email he sent me 5 years ago with the word "erudite" in it. I was suggesting to use a systematic approach to writing options and credit spreads. Then, he responded.
Great article Surf !! became interested in this thread as I just started reading his 'education' book a few days ago. Looking forward to reading the other when I am done.