Jump to content

Lumpy liabilities


Recommended Posts

  • Replies 155
  • Created
  • Last Reply

w?s=%5EAORD

 

 

All Ords went for the slide today, closing -0.9%. Energy -2% was downside leader followed by Financials and Miners, both -1.1%.

 

All red in Asia: China -1.8%, Honkers -1.9%, India +1.1% and Nikkers -0.8%.

 

 

On to UK/Europe:

 

 

image;size=239x110

 

 

 

image;size=239x110

 

 

 

image;size=239x110

Link to comment
Share on other sites

Just found myself posting this reply on another site .. :o

 

Harsh, but true in many respects.

 

What would you say defines a 'successful' trader?

 

Extremely money hungry, opportunistic without regard to the welfare of others, brutally single minded, strong mental arithmetic although tries to hide it, some applied math / stats knowledge, able to sell or influence others to get a better deal, highly aware of asymmetric payoffs.

 

Never ever willing to share anything that will dilute his upside.

 

Good luck mate.

Link to comment
Share on other sites

talk about yer haircuts!

 

N.Y. Fed Asks Primary Dealers for More Margin on Some Mortgage Securities

 

http://online.wsj.com/article/SB10001424052970204190504577040684087840856.html

 

only part of the farticle

 

taint no way i'm payin' the urinal for the trash they print

 

found out it's probably related to this -

 

http://www.theburningplatform.com/?p=25051

 

I’m cutting to the chase. This is no time to bury the lead.

 

There are no mortgages to back Mortgage Backed Securities. Investors are holding pools of unsecured debt. This debt is not backed by liens against real property.

 

What does that mean?

 

For investors – pension funds, insurance companies, sovereign wealth funds, towns in Norway – it means you have been swindled. The investment products you purchased (Special Purpose Vehicles, converted to Trusts and later Bonds) don’t exist. And it looks like they never did.

Link to comment
Share on other sites

talk about yer haircuts!

 

N.Y. Fed Asks Primary Dealers for More Margin on Some Mortgage Securities

 

http://online.wsj.co...4087840856.html

 

only part of the farticle

 

taint no way i'm payin' the urinal for the trash they print

 

If you google the headline, you may get a link that allows access to the hole enchilada. Get it? HOLE enchilada? You know... Hole... heh... heh heh...

 

Here's more:

 

A transaction in so-called current coupon MBS, the most liquid securities in that market and the target of the Fed's policy-driven buying, is typically settled a month forward. Under this arrangement, known as a forward MBS agreement, the securities are delivered one month after the transaction takes place. That is where the counterparty risk arises for the Fed. Over that time, the value of the MBS can fluctuate and if the price were to rise, the central bank would have to pay a higher cost to replace them if a dealer failed to make delivery.

The measure would be a blow to dealers as it would raise their trading costs. But the move could provide an extra layer of protection for the Fed against the risk that a dealer bank goes belly up. That risk became apparent with the collapse of

MF Global Holdings

Ltd., an investment bank that until its bankruptcy filing two weeks ago was listed as a primary dealer.

 

Link to comment
Share on other sites

talk about yer haircuts!

 

N.Y. Fed Asks Primary Dealers for More Margin on Some Mortgage Securities

 

http://online.wsj.com/article/SB10001424052970204190504577040684087840856.html

 

only part of the farticle

 

taint no way i'm payin' the urinal for the trash they print

 

found out it's probably related to this -

 

http://www.theburningplatform.com/?p=25051

 

I’m cutting to the chase. This is no time to bury the lead.

 

There are no mortgages to back Mortgage Backed Securities. Investors are holding pools of unsecured debt. This debt is not backed by liens against real property.

 

What does that mean?

 

For investors – pension funds, insurance companies, sovereign wealth funds, towns in Norway – it means you have been swindled. The investment products you purchased (Special Purpose Vehicles, converted to Trusts and later Bonds) don’t exist. And it looks like they never did.

 

Cut and paste the title and do a Google search. Then click on the search result. Viola! - there is the full article.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...