Darn - I guess the lesson is always check permissions for every product in the world, you never know when a trade might pop up. Anyway, I have Euroswiss permissions. Wanna go into more detail on your trade rationale, where you see the contract going, what you'd say the risk is? How much size would you put on, in terms of % account equity per 100 tick move in the contract? Also, I note that CHF is now crashing, off 4.5% in 2 days. What an incredibly weak currency!
To be sure, you wanna buy negative fwd LIBORs, expecting them to go more negative? P.S.: Doesn't look like CHF will be crashing for much longer, given what's happening in the mkt right now.
Europe rolling over after up more than 3% this morning. This is getting ridiculous. Reuters says French banks are having their credit lines cut by Asia. SocGen down another 6% after being higher 8%. Sheesh.
As I just mentioned, I for sure meant sell, not buy. I haven't thought the trade all the way through and the IB permission process will give me some hours to think about it.
at the risk of being over-dramatic - that's your Lehman moment. When interbank lending grinds to a halt.
Now following the Sept 2008 script what we'd need would be Sarkozy to come out and pull a Hank Paulson saying BNP & SocGen are not systemic and markets are 'well-prepared'.
This is on the back of a story of some Asian banks pulling French banks' lines. Mkt's in a self-reinforcing panic mode here.
correct, and like 2008, the best way to stop the panic (from a politician's point of view) is for governments to provide capital injections. Alternatively, the market can quickly take all French banks out very quickly.