The Global rules for the OTC derivatives have been implemented in the US and are imminent in Europe that will have imagessignificant long-term implications for how hedge funds, asset managers and regional banks execute, clear, and report their swap positions.

Jack Callahan Executive Director of OTC products and services at CME Group shared some of his views reading between the lines as second phase of the OTC clearing mandate that is required under the Dodd-Frank legislation. This means that those firms defined as part of Category 2 (hedge funds, asset managers and regional banks) that trade swaps must move very quickly to finalize central clearing arrangements. Continue reading “PHASE – 2 SWAPS CLEARING FOR DODD-FRANK”

Just Dialed or Just Don’t Dial – IPO

I hate writing on the IPOs  personally I don’t like them – It is important to highlight apart from Mr Amitabh Bachchan imageswho else is playing the Just dial game becoming bit richer as he owned 62,794 shares, or 0.1% of Just Dial, since February 2011.

Though Mr. Bachchan won’t be selling his equity in the share sale, his investment could now be worth as much as 34 million rupees ($615,249). Meaning, he has made a theoretical profit of 33.5 million rupees ($603,048).

Moving out from Bollywood the latest that I know is Just Dial’s up to 9.4 billion rupee ($170 million) initial public offer was subscribed 11.6 times on closing on Wednesday, in what is the biggest IPO in the country so far this year. Continue reading “Just Dialed or Just Don’t Dial – IPO”

Study on Hedge Funds to allow advertise or not

YanLu, David K. Musto and Sugata ray published a paper under the heading “Alternative Marketing for Alternative imagesInvestments” . Hedge funds are currently banned from advertising. New legislation contemplates lifting this ban, thus raising the question of whether the ban is good policy. The Paper address this question by analyzing a form of indirect hedge fund advertising that already exists: advertising by institutions running both hedge funds and mutual funds, where the ads promote either the overall institution or specific mutual fund products. The Paper find that institutions increase such advertising after hedge fund flows sag, and that such advertising predicts subsequent increased inflows for hedge funds. Continue reading “Study on Hedge Funds to allow advertise or not”

A Recession Doesn’t Put Everything in Decline

Guest post by : Green

The ability to understand and manipulate economic markets for financial gain is a skill that has been watered down over

English: Fijian native trading with white traders.

the years. It seems these days that almost everyone thinks they are an expert in stock and shares, Forex or commodities. The big crash of 2008 and the ensuing volatility in a number of key markets have been refreshing in so much as it really separated the masters from the mice in market trading.

Identifying Trends

Those who have managed to continue to make money during these hard times are the quintessential trend spotters. However in this case they are not so much spotting an individual trend, more the changing methods of how to invest in the stock market. Continue reading “A Recession Doesn’t Put Everything in Decline”

Market Efficieny : Anomaly from CDS and Loan CDS

There was a unique study done recently paper titled “MARKET EFFICIENCY AND DEFAULT RISK: EVIDENCE OF AN imagesANOMALY FROM THE CDS AND LOAN CDS MARKETS” by Lawrence Kryzanowski, Stylianos Perrakis and Rui Zhong.

The findings where significantly positive pricing-parity deviations from a simulated portfolio that simultaneously participates in opposite legs of the undervalued and overvalued contracts in the CDS and LCDS markets for exactly the same underlying firm, maturity, currency and restructure clauses. These deviations cannot be accounted for by trading costs, illiquidity or imperfect data about recovery rates in the event of default, suggesting segmentation between CDS and LCDS markets. Continue reading “Market Efficieny : Anomaly from CDS and Loan CDS”