Derivatives Statements made and Translations

I am a big fan of Traders Guns and Money the book written by Satyajit Das, the definitions Knowns and Unknowns revealed by him is the classic work.  The reality is always to make sure that you have a sheat when the music in this game of musical chairs for high stakes stops ( referring to the examples for the  crisis happened in the past). As a result of it some interesting statements the management of the firms make but the intensity is something to thought about :-

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 “Derivatives Statements made and Translations”

Investing , Trading some thoughts from Peter Lynch book

It’s not mandatory that all good investors are good writers and visa viz that all good finance writers are good investors. It’s the experience of the people who is good or bad that counts . Here again some of the best remarks from Peter Lynch :

  1. When the operas outnumber the football games three to zero, you know there is something wrong with your life.
  2. Gentleman who prefers bonds don’t know what they are missing.
  3. Never invest in any idea you can’t illustrate with a crayon.
  4. You can’t see the future through a rear view mirror
  5. There’s no point paying Yo-Yo Ma to play a radio.
  6. As long as you’re picking a fund, you might as well pick a good one.
  7. The extravagance of any corporate office is directly proportional to management’s reluctance to reward the shareholders.
  8. Continue reading “Investing , Trading some thoughts from Peter Lynch book”

Greek credit event has occurred, CDS payments triggered : source ISDA

Was thinking to do the post in the morning but had enough evidence to share it now.
The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its EMEA Credit Derivatives Determinations Committee resolved unanimously that a Restructuring Credit Event has occurred with respect to The Hellenic Republic (Greece).

The EMEA DC resolved that a Restructuring Credit Event has occurred under Section 4.7(a) of the ISDA 2003 Credit Derivatives Definitions (as amended by the July 2009 Supplement) following the exercise by The Hellenic Republic of collective action clauses to amend the terms of Greek law governed bonds issued by The Hellenic Republic such that the right of all holders of the Affected Bonds to receive payments has been reduced. The details are available on ISDA website .

It means there will be a net $3.2bn pay-out on CDS contracts, Continue reading “Greek credit event has occurred, CDS payments triggered : source ISDA”