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LTCM

Negative swap spreads

June 2, 2009

Felix Salmon writes about the negative swap spread - a fascinating turn of events. Or at least, it was when the swap spread went negative almost a year ago. The swap spread is the extra amount that an interest rate swap yields over a similar Treasury bond. Typically, a swap yields a few basis points […]

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Aggravation (but keep reading)

May 16, 2009

I happen to like this article by Niall Ferguson for the Times Magazine, in particular this bit: Human beings are as good at devising ex post facto explanations for big disasters as they are bad at anticipating those disasters. It is indeed impressive how rapidly the economists who failed to predict this crisis — or […]

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