If you would have been following the markets around the globe specially, The Wall Street Investment banks are struggling third-quarter earnings season following a drop in mortgage refinancing and a downturn in trading. How well do you know the big banks? Test yourself by matching the financial giant to the quote about their earnings reports.
I provide you the answers here you need to find the correct one : The financial firms are JPMorgan Chase, Wells Fargo, Citigroup, Bank of America, BlackRock, Goldman Sachs and Morgan Stanley. Continue reading “Take the Wall Street Earning Quiz :)”
Not many of you aware of the incident that took place in the month of April 2012 Bloomberg and Wall street journal made the headlines JPMorgan Trader’s Positions Said to Distort Credit Indexes and ‘London Whale’ Rattles Debt Market.
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.Taking a position in the index allows traders to hedge or speculate. Going long means selling protection on the index in the expectation that the underlying company credits improve or at least do not default. Going short means buying protection on the index. The net notional value of the CDX.NA.IG.9 has surged from about $90bn at the start of the year to $150bn in April – indicating a big jump in trading. Continue reading “The Whale trade of JP Morgan in 2012”
The final approvals for the BASEL III capital standards provided by US regulators. Was going through one of the article published in American Banker written by Clifford Rossi, opens up that implementing robust capital standards that give individual institutions sufficient buffers from extreme events and protect the system at-large has been a major challenge for regulators and the Basel Committee since the inception of risk-based capital charges years ago. However, over reliance on analytic methods that failed miserably during the crisis puts the entire system at risk while creating enormous burdens on institutions and regulators to closely oversee these models. Continue reading “BASEL III – Risk Exposed”
Looking at the current market scenario and the past these are very common lines from the sales team of the various
Financial firms and let’s try to observe what is the reality behind those statements :-
Statement: As a Leading dealer with a global platform, we are the major player in the market.
Translation: We have spent a fortune to build this business and are now prepared to spend millions more subsidizing your requirements.
Statement: We have one of the most talented teams in this space.
Translation: Our staff are vastly overpaid and on huge guaranteed bonuses. Continue reading “More from the World of Derivatives”
The straightforward strategy of buying companies that have recently been spun off from their parent has generated very
good results. The forces of divestiture and conglomeratization eternally wrestling with each other like gravity and energy in the cosmos.
How about this for a rational explanation:
Spin-offs generally result in more “pure play” stocks which then become more accurately valued in the marketplace. When the pre-spun-off business are tied Continue reading “Spin-offs and value creation”