18/05/2012 (Before-FB)
Is life as we know it gonna change after 11am New York time on Friday?Will Mark Zuckerberg be crowned emperor of the dweebs (just as Napoleon was crowned emperor of the French...
A bund, a bund, my kingdom for a bund…
Zee 2, 5 and 10-year yieldz are still compressing…to fresh all-time lows.At which point will the Buba be forced to intervene and repo-out the state’s German bund stock?Related links:...
Funnily enough, operational risk is more prevalent in Germany than Greece
Settlement fails.Whether one considers them a systemic problem or not is definitely debatable.A new study by post-trade experts Omgeo (based on a survey by Global Custodian) nevertheless,...
The undercollateralisation risk
Central counterparty clearing and settlement was always intended to make the financial system safer.If you use a CCP, the idea goes, you’re far more robustly protected...
Flight of the euros
A flight from: With even Brent crude affected:… and headed to:
The (early) Lunch Wrap
Good morning New York…FT ALPHAVILLE Fitch tallies cost of Basel III: David takes us through the 29 global systemically important financial institutions which, according to Fitch,...
What happens if the Chinese government cracks down on all copper ‘financing deals’?
Goldman Sachs’ latest commodity note considers the influence of China’s bonded warehouses, chock-full of copper, on the underlying market for the metal.First, they...
Why China’s RMB exodus IS the story
There is a huge developing story in China’s currency, the renminbi.After years of structural under-valuation, things are changing.China faces what we have described before...
Do not trust the FRA-OIS spread!
An excellent point from Don Smith at ICAP on Tuesday.If you’ve looked at the eurozone FRA-OIS spread recently and wondered why it is so weirdly stable given that Grexit...
Your handy one-table guide to the cost of Grexit
Courtesy of Eric Dor, Director of research at the IESEG School of Management, Université Catholique de Lille:As for the banks:Assuming that the new national currency would...
The “other reportables” oil mystery
From John Kemp at Reuters on Monday (our emphasis):Hedge funds and other money managers reduced their long position in U.S. crude by the equivalent of nearly 54 million barrels of oil,...
The unconventional hedge, redux
FT Alphaville’s resident credit expert Lisa Pollack is on the case regarding JP Morgan’s “egregious” loss announced on Thursday.But, as we wait for her analysis,...
