tag:blogger.com,1999:blog-30643134.post5044525198480322134..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: Debt Wars Episode II: Attack of the TradersAccrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-30643134.post-17500608715197362822009-12-23T23:55:45.620-05:002009-12-23T23:55:45.620-05:00hi
could you write about something more interestin...hi<br />could you write about something more interesting? Your earlier posts were much better & more relevant. <br />:-0Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-91851137841995154702009-12-22T01:04:20.110-05:002009-12-22T01:04:20.110-05:00not much of a yield curve anymore, more like a ver...not much of a yield curve anymore, more like a vertical line. this will be the story next year, all eyes on the curve.acrossthecurvehttps://www.blogger.com/profile/16425254934059527965noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-56925727520923665692009-12-21T12:16:19.993-05:002009-12-21T12:16:19.993-05:00I seriously do not understand this post.
If "...I seriously do not understand this post.<br /><br />If "real money" is not available, where does the traders get the leverage to fund their 10:1 levered 6% bonds?<br /><br />Or maybe you can argue they can borrow some 5% bonds, sell it, and buy the 6% bonds... But who do they sell to if the "real money" is all tied up?<br /><br />If you borrow money, SOMEONE is committing "real money" to you so you can do something else with it. Therefore, I don't see how you can make such a distinction between "real money" and "fast money"Mike Thttps://www.blogger.com/profile/02533667143855420661noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-7084851210999879602009-12-19T14:40:12.842-05:002009-12-19T14:40:12.842-05:00So ... within this theoretical closed system, wher...So ... within this theoretical closed system, where does the money come from that the trader is borrowing in order to make this leveraged play? <br /><br />Ah, yes, banks and thin air.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-58339081124145285592009-12-17T19:45:08.749-05:002009-12-17T19:45:08.749-05:00By the way, I just noticed the 2 year's yield ...By the way, I just noticed the 2 year's yield has consistently stayed under the 50 day MA since early 2007. What do you think of that?In Debt We Trusthttps://www.blogger.com/profile/05283475872936333396noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-83633708178600771012009-12-17T06:05:52.174-05:002009-12-17T06:05:52.174-05:00I don't think a reasonable level of leverage m...I don't think a reasonable level of leverage makes the system unstable. I think zero leverage makes the system worthless. <br /><br />I love the flattener trade, but I'm not sure it really starts paying off for another month or so. I'm going to write more about this maybe today.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-32251745423526181902009-12-16T16:26:57.626-05:002009-12-16T16:26:57.626-05:00just curious, Do u still like the flattener trade?...just curious, Do u still like the flattener trade? were sitting near record steepness for the 2yr/10yr spread.acrossthecurvehttps://www.blogger.com/profile/16425254934059527965noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-11322708850448917282009-12-16T11:41:49.878-05:002009-12-16T11:41:49.878-05:00Here is a timely theoretical/empirical back-up to ...Here is a timely theoretical/empirical back-up to your claim on leverage - Via Econbrower blog - http://www.newyorkfed.org/research/staff_reports/sr406.pdfAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-64399874156715332692009-12-16T10:57:49.944-05:002009-12-16T10:57:49.944-05:00No doubt that leverage which creates kind of virtu...No doubt that leverage which creates kind of virtual money does ease all kind of good an BAD transactions, BUT:<br /><br />your example does NOT explain that it also creates more instability!<br /><br />In a stable systems those who want to do rapid investments must have the required liquidity!<br /><br />irgendeinerAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-63814486121473970492009-12-16T03:39:04.058-05:002009-12-16T03:39:04.058-05:00It seems like a rather short sighted post. It seem...It seems like a rather short sighted post. It seems it exists just to explain why you are getting a salary.<br /><br />"But fast money can afford to go long new bonds vs. a short of the 2018 bonds with a yield differential that is much smaller."<br /><br />The world has to be net long, so who is going to by the extra 2018 bonds sold short if the same world is not interested in the 2019 bonds?IFnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-83459436500609868992009-12-16T00:52:00.589-05:002009-12-16T00:52:00.589-05:00Great post thanks
I also really got a good laugh f...Great post thanks<br />I also really got a good laugh from you not taking down the Catholic church spammer...HilariousErik Steinhttps://www.blogger.com/profile/12202070058119695831noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-37866256484655645142009-12-15T20:13:29.962-05:002009-12-15T20:13:29.962-05:00Here is my holiday present to you, a Star Wars gam...Here is my holiday present to you, a Star Wars game theory example:<br /><br />http://freakonomics.blogs.nytimes.com/2009/12/15/star-wars-game-theory/In Debt We Trusthttps://www.blogger.com/profile/05283475872936333396noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-28983491642302029022009-12-15T19:29:33.396-05:002009-12-15T19:29:33.396-05:00Great post - reminds me off all the negative basis...Great post - reminds me off all the negative basis that was going on for a while there... man that was good eating.Jakedeezhttps://www.blogger.com/profile/07435828557670647528noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-59545694439407331992009-12-15T16:24:33.259-05:002009-12-15T16:24:33.259-05:00The Catholic Church is spamming my blog? Someone c...The Catholic Church is spamming my blog? Someone call Dan Brown!Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-31698387692794900352009-12-15T16:17:22.765-05:002009-12-15T16:17:22.765-05:00It would be extremely kind if you could let your r...It would be extremely kind if you could let your readers know about the latest issue of our journal 'CHRISTVS REGNAT', which makes some attempt to bring something new in the field of thought and study about our Catholic heritage, liturgical, cultural, historical, biographical, musical and, of course, spiritual:<br /><br />http://catholicheritage.blogspot.com/2009/12/christvs-regnat-december-2009.html<br /><br />You are also most welcome to link/follow/blogroll our blog:<br /><br />http://www.catholicheritage.blogspot.com/<br /><br />Please pray for me!<br /><br />May God bless you!<br /><br />St. Conleth's Catholic Heritage Association (Ireland)Convenorhttps://www.blogger.com/profile/17939527929709019039noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-20986217060228175082009-12-15T14:48:12.795-05:002009-12-15T14:48:12.795-05:001) What is someone doing that he needs to issue a...1) What is someone doing that he needs to issue a bond? Who values what that person wants to do and how much savings do they have? Those people will fund this opportunity.<br /><br />The bond has to be valuable enough to entice people to change their long-term strategy now, in the short run. <br /><br />You mention one reason good reason, a high yield, but I see plenty of room for other possibilities: I love my son who has some disease. So I want my savings to fund the creation of a cure.<br /><br />2) If there is a discrete amount of available money, 6% interest rates sounds unsustainable. 0% or a negative interest rate (0% + fees on deposits) seem to be the only thing that makes sense.Erickhttps://www.blogger.com/profile/02652955951641649620noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-39581136667113135722009-12-15T13:30:40.437-05:002009-12-15T13:30:40.437-05:00Good post.
You could also give the example of bas...Good post.<br /><br />You could also give the example of basic futures/cash arbitrage. If they are not kept in line then they will not send the right price signals. You might think that future oil is cheap but really it could just be a function of there being no one to trade the calendar.JoshKhttps://www.blogger.com/profile/17028441526311718240noreply@blogger.com