Now to swaps: one type of Derivative you’ve heard of on CNN or NPR is the Credit Default Swap. It is used to hedge risk in credit. Basically the risk that one person will default on their debt to another. Explaining CDS s will make this blog very long, but suffice to say CDS’s made […]
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Part 1. Financial Derivatives and Defaut Swaps – Everything you ever wanted (or not) to know about them.
“Everything counts in Large Amounts…” – Depeche Mode. So you want to understand the financial crisis more? Understand why we are all but in a depression (for we’ve been in a recession for at least a year, according to some analysts.) Then you have to understand the humble lil derivative. Derivatives, what are derivatives, and […]
Coffee beans and Arbitrage in a couple of easy steps.
What is arbitrage? People in the habit of watching CNN or foxnews coverage of the financial crisis may hear this word now and then, and if you hang out with hedge fund managers such annoying terms like arbitrage and alpha probably roll off their tongues whilst drunk. Behold, I shall define Financial Arbitrage. Arbitrage, quick, […]
Hurricanes, Ethanol Prices and Financial crisis – another factor in your tank
‘Everything counts in large amounts…’ – Depeche Mode And in small amounts too. Do gasoline prices have you down? Well they have me down as well. But if you are reading this from the tri-state, be comforted by this fact. They are higher elsewhere. I was up in Canada this week, up in Vancouver gas […]