When a derivatives counterparty leaves the euro…
Law firm Clifford Chance must be tired of fielding questions about what would happen to derivatives contracts should one’s eurozone counterparty exit the single-currency....
Warning: transparency in finance may lead to goat-herding
Before the break, FT Alphaville took a look at abstraction and morality in modern finance. This prompted some rather interesting discussion, among which this post from Interfluidity:...
Do you believe in netting? — Part 2
In Part one, FT Alphaville asked whether there was reason to doubt the netted derivatives exposures reported by banks. Here, we discuss how netting works (or doesn’t, ahem)...
Do you believe in netting? — Part 1
On Friday, Jeffrey Snider of Atlantic Capital Management argued that finance now exists for its own exclusive benefit. The thrust of his argument is that derivatives have allowed...
The Lehman flip-clause flap gets settled – sort of
That’s a big deal for the structured finance world, though you might not know it.It’s to do with the loooong and continued unwinding of Lehman Brothers. Specifically...
Tabb: HFT makes up a third of OTC energy swap trading
Attention over-the-counter (OTC) energy traders who think there’s no prominent high frequency trading (HFT) presence in their section of the market.A Tabb Group research...
How much is this plain vanilla derivative in the window?
Just to be totally clear we’re talking plain vanilla derivatives like, say, interest rate swaps a bank might arrange on behalf of a company. But it seems they’ve taken...
Eurostat isn’t happy with Greece and its Goldman swap
Greece’s currency swaps with Goldman Sachs may have slipped your memory.Luckily Eurostat, in a just-published review of its methodological visits to Greece in 2010, has a quick reminder....
Hedge commodities in euros from Monday
Olivier Jakob, at Petromatrix (who we know we quote a lot, but only because he really does constantly come up with interesting points) alerts us to the fact that from Monday onwards...
Further further reading
For the commute home, where no-one criticises your fiscal policies,- More on Goldman’s bearish commodities turn.- Richard Koo talks balance sheet recessions.- A read-out from Soros’...
PDRCs, the 30-year swap spread and Japan
FT Alphaville has already cautioned about the chaotic effects the Japanese crisis is having on variance swaps. But here’s another potential (derivatives) spillover.It’s...
