are big banks betting on down side?

Discussion in 'Economics' started by Bob111, Oct 26, 2012.

  1. Bob111


  2. CT10Gov


    No chance the banks are hedged on the other side of the note...

    Or that banks routines issue these notes because investors are greedy for yield in a very low interesting environment?

    Of course not... must be because of some grand conspiratorial scheme....

  3. pma


    Geez-is there a cliff notes version of this thing?:D
  4. They hedge out the risks and charge you 1-5% for putting it together.

    Advantage to them: they get 1-5% and have little risk.
    Advantage to you: you get a structured payout you could do on your own.
  5. CT10Gov


    The first two sentences...

  6. Bob111


  7. typo.

    meant to say, "you get a structured payout you couldn't on your own."
  8. sle


    It must be the Jews, as usual!