UBS rogue trade – the wider costs
RBC’s highly rated banks team have already taken a stab at estimating the impact of UBS’s rogue trade.Loss in context of numbersAssuming the loss is not revised...
How Many Of Us Really Understand Risk?
Institutional Investor excerpted a little from Howard Marks from Oaktree Capital Management writing about risk. The article covers just about every aspect of risk and provides a little validation for some of the ideas I write about. The article is a mu...
The calm before the (volatility) storm
We ♥ this note from Bank of America Merrill Lynch’s Ruslan Bikbov and Priya Misra.It’s on a subject dear to our own hearts here on FT Alphaville — the curious...
Odds and Ends
A couple of weeks ago I mentioned the interview in Barron's with the guy from Muddy Waters research, he is one a prominent basher of the Chinese reverse mergers, in particular China Media Express Holdings (CCME). I mentioned this as part of my ongoing ...
‘Copulas have an image problem’
Never were truer words spoken of a mathematical formula.Out on Friday — some über-Geeky weekend reading for those (still?) interested in financial risk management. It...
Exploring Risk Adjusted
Eric Falkenstein had a thought provoking post in which he outlined a type of risk adjusted strategy that I had not heard of before. If I understood him correctly this is his idea. The starting point seemed to be that assets with lower volatility tend t...
Cycles and Risk
The segment on CNBC, right before the close yesterday, featured commentary from Rick Bensignor and David Darst. There were a couple of points made in the segment that seem to have been accepted as truthisms that I think are actually counter-productive....
Dark Side Of The Equities Moon
Albert Edwards was quoted (or maybe paraphrased is a better word) this weekend by both Alan Abelson and Prieur du Plessis with some dire price targets for the S&P 500. Neither post provided links but there were two different numbers; Abelson said E...
Predicting The Next Black Swan (Again)
That title is still a joke as by definition a black swan is not reasonably predictable. The Wall Street Journal had sort of a long article on the subject called How To Profit From The Next Black Swan. For most individuals and professionals this has bad...
The Psychology Behind Low Yields
Marketwatch had an article over the weekend about the recent success of the junk bond ETFs and some of the reasons why investors have been so keen on this space. Of more interest to me was a quote in the article from Doug Cliggott from Credit Suisse th...
More Bodie
There was one more point from the Zvi Bodie interview mentioned yesterday that I wanted to discuss. He feels that too many "analysts" only consider one scenario. In making his point he uses the example of the current debate of whether deflation really ...
