Registered: Jan 2009
09-01-12 01:48 PM
Quote from foo:
So are you saying most opportunities are changes in perception on where rates may head or, maybe where the economy is heading....great thread...looking forward to this discussion.
Yes, that's right... There's also a new dimension that's been somewhat key after the financial crisis, but isn't too important right now. Specifically, Eurodollar prices also incorporate a proxy measure of the health and liquidity of the banking system, i.e. the LIBOR-OIS spread. There are a few other nuances, such as "the turn", etc.
P.S.: In my previous post, I meant to write "payoffs", not "playoffs". Stupid spellchecker.