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The Financial media & The Markets

Two monks argue about a flag.blog

One says, “The flag is moving.”

The other says, “The wind is moving.”

The Sixth Patriarch happens to walk by and remarks, “Not the wind, not the flag; mind is moving.”

Markets exist as where capital, investors and investments intersect in the form of securities. It is where the buying and selling of debt and equity occurs. Those with capital can invest in or lend to those who can put it to better potential long-term use, be they start-ups or existing companies or governments. Continue reading

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The more you read write, the lesser it is. I have done number of articles on this topic as it’s a hot selling cake in moribund financial market. The Standard & Poor’s 500 Index sank 1.1 percent to 1,338.35, the lowest level since February, as Greece struggled to form a new government amid mounting concern the nation may leave the euro.

Well the latest is Facebook IPO: Oversubscribed, social network set to close books – WSJ reported. Continue reading

JP Morgan Series :

Picking up from the CDX.NA.IG indices are composed of 125 North American corporate credits that are investment grade when the index begins trading understanding JP Morgan loss. As derivative’s are zero sum game so if JP Morgan lost $2 billion from April 2012, than who made a $2 billion profit in the same time, well I don’t know.May be some unidentified hedge funds apparently. It was like once the sharks smelled blood in the water, they started betting against the whale, making his losses much bigger. The huge size that traders were complaining about

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I do not know why but somebody wanted me to define some basics on Yield spreads, that whether Yield spreads can judge the risk environment in an economy ?

Yield spreads are good tools to judge the risk environment in an economy a lower yield spread means that the issuer of debt is in a situation to demand loans at a lower spread above the yield of government security which in turn shows the presence of ample liquidity.

As far as economic growth is concerned a lower yield spread indicates greater amount of liquidity available for growth Continue reading

Lets pick up from yesterday post. Empirical tests of the efficiency of capital markets have examined the extent to which the prices of securities reflect relevant information, i.e. pricing efficiency, because of lack of data for testing allocational and operational efficiency. Many studies have examined the extent to which it is possible to make abnormal return in excess of expected returns.

Markets are said to be “weak form efficient” if current security price reflect all past movements of share prices. It means it is not possible to make Continue reading

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