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Category: Merchant Banking


High Frequency Trading

Filed under: Merchant Banking — 1 Comment
December 27, 2012

The Bank of England has just released a new paper titled “High-frequency trading behaviour and its impact on market Sandy Traderquality: Evidence from the UK equity market” . The paper is similar to the recent Kirilenko study in that it separates ‘aggressive” and “passive” high frequency traders and it uses data which identifies the counterparties of each transaction.

Before we get into some of the specifics of the paper, it’s important to note how the Bank of England defines HFT:

“The term “HFT” is generally used View full article »

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Best Trades of 2012 @ Wall Street

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December 13, 2012

The global economy gloom is still not over but 2012 was more promising that the last couple of years after the major Subprime Crisis and the ongoing Euro Debt crisis. Here are some of the trades winning bets to be made on Wall Street in 2012. And finding some of them was relatively simple: Just buy the thing that caused—or nearly caused—a major financial meltdown a couple of years back.

1. Subprime mortgage bonds : May sound awkward View full article »

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Seven things you may not know about Warren Buffett

Filed under: Merchant Banking — 3 Comments
November 22, 2012

A week ago finished reading The Snowball “Warren Buffet and the Business of life” by Alice Schroeder. It’s full of surprises, such as how Buffett had three leading ladies for two decades, and how his 1960s home was an accidental outpost of the counterculture.

But I’m more interested in how Buffett made his money. And while there’s few new facts about Buffett’s deals in The Snowball, the biographical format does put them into context. You get to see what makes him tick.

Here are seven interesting things I learned about Warren Buffett from The Snowball, View full article »

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Over Priced – IPO

Filed under: Merchant Banking — 3 Comments
November 11, 2012

I have done a series of posts on this topic and a paper by Pitchard “Initial Public Offerings (IPOs) must simply be abolished” and some fine prints reading of IPO’s “WHAT TO READ IN AN OFFER DOCUMENT ?? “.

In the recent days about how evil banks and corporations are for allowing their IPOs to be “overpriced”. I believe this is a misinterpretation. The whole point of an IPO is for it to be “overpriced”.

This argument about IPO pricing appears like another case of people View full article »

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Remember the Facebook IPO – the Losses that Morgan Stanley incurred on it

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November 2, 2012

Monday Monday

Time and again I did post on the IPO of Facebook and then disclosed the paper on banning of the IPOs. Let’s disclose some conflicts of interest. The Facebook IPO and the underwriters’ price stabilizing activity on its first trading day, Friday May 18. And Fed researcher noted, that there was a whole lot of buying at the IPO price of $38, which was probably largely due to the underwriters and which kept the stock above $38 going into the weekend before View full article »

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Merrill Lynch’s Economic commentary

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November 1, 2012

James Bond Island

I was going through some of the latest Economic Commentary done by Merrill Lynch some extract of rules I found them interesting to share across.

1. In order for an economic forecast to be relevant, it must be combined with a market call.

2. Never be a slave to the date – they are no substitute for astute View full article »

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Initial Public Offerings (IPOs) must simply be abolished

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October 25, 2012

It is a provocative paper arguing that Initial Public Offerings (IPOs) must simply be abolished by Adam Pritchard (“Revisiting ‘Truth in securities revisited’: Abolishing IPOs and harnessing markets in the public good”). He suggests that “companies bec[o]me public, with required periodic disclosures to a secondary market, before they [a]re allowed to make public offerings”.

Pitchard wrote

“No one believes that IPOs reflect an efficient capital market. In fact the evidence is View full article »

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Caveat Emptor for Trading aspirants

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October 1, 2012

Before I start the discussion, I would like to open the discussion How many people do you know that are as successful as they want to  not take responsibility for their actions?
They always have excuses to succeed not fail.You know if something is not working do not go down with the sinking ship. Have a reason for everything you do so you can learn from it. Trading is hard because what is written in stone one day is thrown out the next.

Here is just one of the conversation with trader, which you never want youto be, sharing as its interesting too, here is how it went.

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Alternative Investments

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September 13, 2012

 

Alternative investments are not a new concept but seems to be gaining momentum, I did a story in March 2012 under the heading ART TREATED AS AN ALTERNATIVE INVESTMENT .Would like to evolve on those terms, Lets face it : The financial crisis seemed to mark a turning point in the spectacular growth of alternative investments, such as managed investments in hedge funds, private equity, real estate, commodities, and infrastructure. Poor performance and liquidity problems led to massive redemptions in several View full article »

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Golden Rules of Investing in the market : The book Rules

Filed under: Merchant Banking — 2 Comments
July 8, 2012

On an average the Indian market has given a 19% return in the last financial year that is the 3rd highest return after Egypt & Brazil who gave the better returns. The underlying is how many made the money because the markets where volatile , ruthless and driven by crisis over the year.

Wondering whether the 20 golden rules holds true for today’s market scenario :

  1. Your investor’s edge is not something you get from Dalal/Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.
  2. Over the past 3 decades, the stock market has come to be View full article »
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