Advertisements

Tag Archive: research


Ever imagined how risk free derivatives trade actually is :

Quoting from the famous book traders guns and money :

Breaking down the hierarchy of the trading, “There are salespeople-they lie to clients. Traders lie to sales and to risk managers. Risk managers? They lie to people who run the place-correction, think they run the place. The people who run the place lie to shareholders and regulators”.

Here is self-explanatory poster how these different department see each other. To ease things out, you have to read from right. How the research department see themselves visa-vis other departments like Syndicate, DCM, Trader, Sales

global markets

 

Advertisements

The weekend was very important for the Europe mainly for the france as the Presidential Election is underway and Francois Hollande: 28.4% – with victory virtually assured in the runoff round on May 6, it is now Hollande’s election to lose, and Nicholas Sarkozy: 25.5% – make the runoff round.

It’s a big day tomorrow for the Indian markets as it’s the day of Akshaya Tritiya in India has been traditionally considered very auspicious for purchasing gold, silver, ornaments, precious stones, real estate and other long-term assets. It’s the occasion for traders,Broking houses,Banks and exchanges too who have increased their working hours for the day. Continue reading

In the past months lot of country ratings were reviewed in the European region as well as across Asia, I tried to figure out how they are being monitored in the mean while came across an interesting paper on the risk ascertain by the International Banks.

The risk had been divided on the basis of 5 ratings that are issued to access country risk:

  • The Country average ratings (CAR)
  • The Maximum ratings for corporate (MRC)
  • The Maximum rating for Banks (MRB)
  • The convertibility rating
  • The Sovereign ratings   Continue reading

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

It’s monday morning and I was reviewing the world financial events for this week through Bloomberg & Reuters. For the week ahead, Central meetings likely to held in India, Chile, the Philippines, and Sweden. Government Bond auction in Spain and France an event to be watched out and US to focus on retail sales. The inflation no.’s for India is the key factor too:

Monday April 16:
India WPI (mar)
It is expected March WPI inflation at 6.7% yoy, essentially in line with consensus but lower than the 7.0% yoy in February on strong favorable base effects from last year. Continue reading

%d bloggers like this: