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Recent Entries - Greek Government Bond Market
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- Sterling Today
- Sovereign Risk Jolts Markets
- Monthly Trading Volumes in Greek Government Bonds
- Eurostat Statement on Greece’s Use of Derivatives
- The Bank Lending Channel Revisited
- The Future of Public Debt
- Systemic Risk: How To Deal With It?
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- Papers => FRBNY
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- Scariest Chart EVER: Loss Severity, Subprime First-Lien
- Google CDS => AAA
- Empty Creditor Claim
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- Quotes of the Day
- Fed’s MBS Program
- Variability in Nucleus Accumbens Activity Mediates Age-Related Suboptimal Financial Risk Taking
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- Worth Reading
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- Scorecard: Gross National Savings (% of GDP)
- Withdrawal and Expulsion from the EU and EMU: Some Reflections
- Review of the Differentiated Nature and Scope of Financial Regulation
- Link of the Day
- Summary of a Workshop on Recent Advances in Modelling Systemic Risk Using Network Analysis
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- The Mechanics of a Graceful Exit: Interest on Reserves and Segmentation in the Federal Funds Market
- [Update] Why Are Banks Holding So Many Excess Reserves?
- Basel Committee: Consultative Proposals to Strengthen the Resilience of the Banking Sector
- The World’s Riskiest Sovereign Debt (Update)
- The World’s Safest Sovereign Debt (Update)
- Liquidity Hoarding and Interbank Market Spreads: The Role of Counterparty Risk
- Sovereign and Bank Credit Risk Premia during 2008-09
- Macro Stress Tests and Crises: What Can We Learn?
- Dollar Appreciation in 2008: Safe Haven, Carry Trades, Dollar Shortage and Overhedging
- Interbank Offered Rate: Effects of the Financial Crisis on the Information Content of the Fixing
More: List of All Posts
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Blogs The Epicurean Dealmaker
Poachers Turned Gamekeepers
As the slow-motion train wreck which was Lehman Brothers unfolds once more before our eyes, if not in the pages of our mainstream media—who continue to proclaim against all available ... [Link]
Le blog d'éconoclaste
J'hésite
Chers lecteurs, mon temps et mon énergie sont comptés et j'ai envie de parler de trois sujets, mais ne peut dans l'immédiat en traiter qu'un. Quelles sont vos préférences? J'hésite ... [Link]
The Aleph Blog
Where to Invest, When Interest Rates are so Low
Unlike most people who analyze investments, I think there are periods of time where domestic long-only investors may be consigned to low or even negative returns. As investors, we are ... [Link]
A Dash of Insight
ETF Update: Groundhog Month
Whether you are a trader or an investor you need to have a method and to follow it in a disciplined fashion. You also need to understand your system, having ... [Link]
Money Supply
Splitting supervisory and monetary roles: a global view
The Bank of England does it. The Bank of Japan does it. So why can’t the Fed do it? Ben Bernanke spent the afternoon arguing before a House committee that ... [Link]
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June 11th, 2009 at 4:36 pm
The big boys are mostly pissed that they didn’t think of it themselves, right? Don’t they get the same 10c/$ that they expected from buying insurance at 90c/$. They missed a creative exit strategy and someone profited in a big way off of them, and ‘it wasn’t nice’.
Am I missing some part of the mechanism that hurt the banks more than they first expected?
June 11th, 2009 at 4:46 pm
The big boys didn’t read the prospectus and got taken by someone who did. That’s all there is to it. They have no excuses and no ground for complaints, imho.
June 11th, 2009 at 4:54 pm
ROFLOL
June 11th, 2009 at 6:23 pm
JPM and RBS traders were unaware of cleanup call provisions? Wow.
June 11th, 2009 at 6:57 pm
Nominate Amherst for the investing Oscar “For most creative use of a cleanup call.” Way cool, and makes the pricing of CDS on securities with cleanup calls much more complex.
June 11th, 2009 at 9:35 pm
Hiring Laurie Goodman was a clever move, former UBS and author of my favorite books on everything CDOs and Subprime mortgages.
June 11th, 2009 at 11:45 pm
Just in case no one has a subscription to WSJ, here is a synopsis at http://blogs.reuters.com/felix-salmon/2009/06/11/amhersts-cds-coup/
This is the hilarious slap-in-the-face that I have been waiting for (and from a small shop out of Texas! who woulda thunk!)
June 12th, 2009 at 6:56 am
It’s about time.
It was obvious that there was a problem when the notional value of default swaps exceeded the referenced security.
In the insurance business, they have had centuries to figure out that it is important to have an insurable interest to prevent abuses. For example, buying life insurance on someone else, or fire insurance on someone else’s house.