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How to get around the WSJ paywall: - Copy the URL - Paste the URL into the Facebook textbox where you would create a post - Click on the preview, so the referrer url is Facebook Could probably make a Chrome extension for this...
Short version: banker provides liquidity to the markets and buys up junk bonds from panicked sellers at 40 cents on the dollar. Banker then sells the bonds for more money as the panic dissipates. Some people wonder if important banks like GS should still be making volatile bets like this.
Like the article says, it's very hard to distinguish between market making and prop trading. Especially in illiquid stuff like corporate bonds, the MM needs to hold positions for extended durations, so they have a valid excuse to not be closed down entirely by Volcker. The real reason they make all that money is flow. The guy on a desk like that knows what customers are calling, what they're concerned about, roughly…
I personally think Banks should be incredibly boring utilities. But that ship sailed a long time ago.
Lots of great stuff was thrown out the window in January. My winning bet for the year was to start buying EWC (ishares Canada) during the market lows.
You say "and the mood these days is like a morgue". Please elaborate.
Short version: banker provides liquidity to the markets and buys up junk bonds from panicked sellers at 40 cents on the dollar. Banker then sells the bonds for more money as the panic dissipates. Some people wonder if important banks like GS should still be making volatile bets like this.
How to get around the WSJ paywall: - Copy the URL - Paste the URL into the Facebook textbox where you would create a post - Click on the preview, so the referrer url is Facebook Could probably make a Chrome extension for this...
Seriously, would we tolerate any other subscription required site? Why does WSJ get a pass?
How to get around the WSJ paywall: - Copy the URL - Paste the URL into the Facebook textbox where you would create a post - Click on the preview, so the referrer url is Facebook Could probably make a Chrome extension for this...
Or stop posting them to HN? Seriously, would we tolerate any other subscription required site? Why does WSJ get a pass?
The market making exemption of the Volcker Rule is based on RENTD - Reasonably Expected Near Term Demand. So Goldman has to prove that this was the case for the high yield bonds. Proving this could be quite tricky though - because they have to factor in a whole lot of parameters (market maturity, depth, liquidity, product holding periods, macro-economic outlook and the trading desk's estimation of client demand). But…
Short version: banker provides liquidity to the markets and buys up junk bonds from panicked sellers at 40 cents on the dollar. Banker then sells the bonds for more money as the panic dissipates. Some people wonder if important banks like GS should still be making volatile bets like this.
100m sounds high but 100m is a rounding error especially if spread across 100s or even 1000s of trades.
Short version: banker provides liquidity to the markets and buys up junk bonds from panicked sellers at 40 cents on the dollar. Banker then sells the bonds for more money as the panic dissipates. Some people wonder if important banks like GS should still be making volatile bets like this.
Short version: banker provides liquidity to the markets and buys up junk bonds from panicked sellers at 40 cents on the dollar. Banker then sells the bonds for more money as the panic dissipates. Some people wonder if important banks like GS should still be making volatile bets like this.