Lol, what? Where did you get 50%? 250 bps of yield change * 8ish duration ~= 20% change in price
Dude, he is right. Asset-weighted performance of all investors, both positive and negative, will equal the overall performance of the market. So...
Mkay, so you disagree with my definition? Here is a quote from Wikipedia: i.e. 0 = sum<i=1 to N> { w_i * delta_i } where sum of w_i is 1 and...
It never really was a secret either. Kinda useless bit of information (there are arranged trades, so there is no price impact) unless you want to...
They only do so because of the interaction with the asset market - i.e. without an ability to collapse the arbitrage relationship, the two could...
The asset markets is not a zero-sum by construction, as it (eventually) allows for risk transfer between interested parties (buyer wants a higher...
That's not really true. A short-term trader is a provider of liquidity for the long-term investors (or for other, longer-term traders), so it...
is there such a thing yet?
OMO - open market operations SOMA - system open market account PS. Sorry, I should have clarified right away.
You are contradicting yourself, dude :) Oh, a travesty :D
everyone here is an elite trader or at least behaves like one :P Most of the market makers are what you call HFT and most of the transactions...
It does not work this way. At least, if you have a certain amount of regulatory capital that you have to hold in riskless bonds, you are going to...
Just retirement investments are worth about 25 trillion so somebody out there is investing. Maybe it's just you who missed the boat?
He wants to retire, I guess.
Erm, that's self-contradictory. If the banks are required to hold more treasuries, demand for treasuries should be higher, not lower. Hmm. That's...
Here is a simple toy model, assuming square root for market impact: total flows = 227 - 87 = 140 daily flows = 140/60 (60 days in first quarter) =...
:vomit:
This is kinda priceless: "To me, leaving so many children in poverty and not educating them well ... is economically stupid." Removing existing...
A lot of IPO buys have non-hypothecation clauses in place with their providers so the price does not get dumped early on. Do you mean sell? If...
Well, the problem with stuff like FRA/OIS or FF/SOFR is that when it does breakdown, it means that something went bump. I'll write a bit more...
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