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Another day, another article demonizing CDS

November 28, 2009

Bloomberg has a new article up about how the CDS market is starting to crumble - the sort of piece that looks like it's been sitting on a back burner waiting for an excuse to stoke the flames of derivative fear (thanks, Dubai!). One of the article's chief arguments is that "credit-default swaps tied to Thomson […]

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A major international airport deals in derivatives...

November 10, 2009

Contrary to what you might expect, the WSJ reports that San Francisco International has had great success in their adventures with interest rate swaps, providing a breath of fresh air amidst the media's usual "swaps ruin the economy" fare.  SFO has taken on interest rate exposure in 2005 and 2008 has two more contracts that […]

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Measuring aggregate risk in CDS markets

September 25, 2009

The ECB recently published this lengthy report (PDF link) on the state of the CDS market, with particular focus on counterparty risk. It is well worth a read for either a cursory overview or more in-depth look at the mechanics and concerns of that market. Section 3.4 regarding counterparty risk measures was especially interesting to […]

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More reverse convertibles: cutting the nose to spite the face?

June 18, 2009

Felix is back at the forefront of the "ban reverse convertibles" charge. He makes some salient points, but continues to encourage a slippery slope form of regulation that would ultimately handicap an industry to protect the naive daytrader. Referring to embedded short options in general, he notes: But retail-facing financial instruments should never embed such […]

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Dead shoots?

May 22, 2009

Happily, I've only used the term "green shoots" one time in the brief history of TGR, and then only sarcastically in the title of this cartoon (which I stand by, as this post should make evident). The term has always struck me as ridiculous, and not solely because it was first uttered at a time […]

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