Don't mean to damn the mathematical approach. Just too much reliance on it. Thats all. Corr is exstremely volatile. I have doubts whether something so unstable exists.
"... I have doubts whether something so unstable exists. ..." i am serious. i find the idea that corr does not exist because it is too unstable wonderful. and your sentence is philosophically ... inspiring. peace you are european???
Yes, I must admit I find this medium a bit difficult. It was a bit of a strange sentence. I am very sceptical of anyone who thinks that they can trade something that they can't measure. Or you have exstreme difficultly measuring. Perhaps we should just accept that it doesn't exist in any meaniful way?
well, if you believe this is a temporary dislocation that will revert to "normal" soon - be a hero and sell equity protection vs. buy mezz. You can be delta neutral (at least in theory), pick up 200-250 bp carry, and take out enough cash to account for about the first 3 defaults in the CDX index. Whatever desk you do this trade with will love you - make sure you at least get some high class strippers out of it. On the other hand, if you believe that this whole thing is an augur of even worse credit contagion ahead, then just buy mezz protection. It's so cheap right now. I guarantee you can't lose money. I want you to drive out of here in a new synthetic tranche today. You have to ask your wife? Come on, who wears the pants in this family?
sle seems you had some experiences with salesServices ... well, honestly speaking she wears pants today ...