Gudi Padwa, Cheti Chand, , Ugadi – make it a Great day and a Great Year.Happy New year! A very happy new Financial year Year too . Well moving back to the topic : Flash Boys: A Wall Street Revolt is a new book by Michael Lewis to be released today. I have been following Mr Lewis when I first read his best work in “Liar’s Poker” . I have read almost all his books published in the past and found every time fresh things to explore in this financial jungle.
He appeared for an interview day before yesterday before the release of Flash Boys,” is scheduled to be released on Monday, appeared on “60 Minutes” to argue that high-speed trading has ripped off investors not in possession of lightning-fast computers and special cables.
Flash Boys is about a small group of Wall Street guys who figure out that the U.S. stock market has been rigged for the benefit of insiders and that, post–financial crisis, the markets have become not more free but less, and more controlled by the big Wall Street banks. Continue reading “Flash Boys : A Wall Street Revolt”
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
Continue reading “JP Morgan Series :”
As I have been continuously posting on the Credit derivatives these days thought of sharing a post that I did early in 2008 when the face of Investment banking completely changed after sub-prime crisis.
There was an era when Investment banking (IB) was on the role … hefty packages, luxurious life, dream job for a financial student were some of the features of IB. Over the years evolved as a very big concept coined by the US, In India we use to call that as a merchant banking .
Goldman Sachs, Bear stern, Morgan Stanly, Lehman Brothers and Merrill Lynch were the 5 icons which use to shine at the wall street over the period of time. Continue reading “Leverage is good or bad”
Continuing from my yesterday’s post why Central clearing is one of the solution if we just analyse recent crisis.In the financial crisis of 2008, banks feared that their trading partners might not be able to meet obligations to make good on the credit-default swaps,and on derivatives plus other financial arrangements. The situation set off a chain reaction that paralyzed global markets until governments and central banks provided enormous financial support.
Continue reading “Central Clearning Of derivatives & Dodd – Frank continues…”
Here is some bizarre facts the amount of leverage done on the various European economies. The contagion is spreading, was watching an interview yesterday in the night of a financial consultant from Europe, and he responded to the questions with the context of European economies :-
- How much does Greece Owe ?
- 367 billion $
- Who they owe too ?
- Mostly to the other European economies
Continue reading “Back to Europe It’s a huge pile of debt :-“