I would not disagree with you regarding the slippery slope. It's very tempting and I, personally, expect the govts to succumb to the temptation....
Sorry, meant 'mini'. This sorta goes back to the M-LEC super-SIV idea that was floated briefly at some point to rescue the banks.
Maybe, but we're talking about a catastrophic weakening being very bad. On the other hand, a moderate weakening of the ccy can work wonders....
Yes, "Maiden Lane"'s are the Fed mini-super-SIVs to house the AIG stuff...
That's a silly thing to say... There's nothing very badly wrong with CDS as an instrument, much like there's nothing wrong with vanilla interest...
Here is a VERY good summary from Stephen King:...
You heard of the monolines, right? MBIA, etc.?
CDS are not evil... They're OTC contracts, so you would need to sign an ISDA with your prospective counterparty and post collateral.
Big flow is normally the cause...
Awwwww, that's sweet...
Hey, did you do anything with CHF today? Curious how you handle discontinuities...
Be that as it may, the notionals on these derivatives are a complete red herring. If any of these authors talked about 'market value' or...
I am told that most of the accepted offers in this first reverse auction were from fast money. IMHO, once these guys take profit on a nice...
The UK insurers are particularly vulnerable due to a) how active they have been in the pension arena, which is now an absolute disaster; b) just...
Well, when I say 'creeping around' I mean two things... On the one hand, weaker banks here have been effectively defaulting on their hybrids...
He makes a good point. Especially since these sorts of ideas have been creeping arnd in Europe and UK for weeks already.
Look at the 10y Aussie bond futures. As you point out, if you do either futures or options on this bond future, you will need to roll quarterly....
Agreed, we're talking about the same thing. I am saying that in the end a weak currency is a good thing, while you're saying that the...
This fascination with large notionals has to end, 'cause it's plain stupid. People forget about risk, which is a bit more tricky to explain, and...
Don't see what the problem is... This article actually suggests quite an important scenario that warrants a lot of thinking about.
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