<t>QuoteOriginally posted by: spacemonkeyQuoteOriginally posted by: McWulf...But life is never that simple. In the UK, there is little evidence of QE leading to inflation. ...Is this some kind of a joke?Wasn't meant to be. I'm talking about the current programme of QE, which may or may not be causin...

<t>QuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: CuchulainnQuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: CuchulainnThe difference between USA and EU is that the former has a Federal government which means for example, that Nevada gets funds from Washington to ...

<t>Traden4Alpha - yes but can I add to the mix the idea of exchange controls? Currently a Greek domestic holder of Euros can deposit cash in a Euro account in (say) Germany. Maybe that won't be possible if the Greek government brings in exchange controls so I would expect a rush to export Euros in t...

<r>Wow, such a lot of discussion. About drachma (about which I know little) and about Scandinavian food (about which I know even less other than what I eat at "Peter's Yard").My question was not just idle curiousity, but relevant to the work we do with equity markets, where we have to prepare for ne...

Only guessing here, but for risk monitoring purposes you don't want your VaR to be hopping in and out of critical with every trade. However I agree that strictly speaking your assets are worth what the market says they are worth not what the SNS curve says they are worth.

So if Greece defaults, decides (or is told) to leave the Euro and re-introduces Drachma, how long does that process from decision to new currency take?

The view your employer takes seems to be that the market data is noisy and that the SNS curve provides a kind of smoothing function rather than an interpolating one. Otherwise as you say, just use the market spreads. Maybe that's mroe appropriate for VaR?

<t>To extend the analogy, shareholders can take action against the board if they disapprove of its actions. What might be good for an economy might be bad for many peoples' personal values. Hence a new government (Greece) or a revolution.I also question the competence of a government to manage an ec...

<t>In theory at least, if you fear QE then you move your savings into a non-QE currency which will be stronger as with the USD example you show. But life is never that simple. In the UK, there is little evidence of QE leading to inflation. But what has happened is that interest rates and bond yields...

<t>For what it's worth I agree with Alan. WHT is a pain to include at the best of times anyway, as each participant's tax status depends not only on their domicile but on the domicile of the various investments making up the index and the various tax treaties between the domiciles. Add to that the s...

<t>Some Greek citizens are already moving money into German banks to hedge against a domestic conversion to another currency. The irony is that these are the same banks that have lent Euros to Greece in the first place. So if there is an exit then those Euro loans may never be repaid, undermining th...

<t>I presume you mean opinion polls? I guess you need to look not only at the reliability of the poll but also any models that factor the outcome into your financial gain/loss. In the UK we often find that polls can be quite accurate - to within a few percent of the actual outcome - but that few per...

<t>Where is the other 41%? Whatever it is - even cash - you will need to add abs(41%-0) to your running total so long as it is not invested into the bechmark itself. You will get active share = 70.5%.An active share of zero means you have exactly the bechmark. An active share of 100% means you have ...

Presumably you are correlating price returns?

<t>I prefer to use something like where stocks i = 1..n can be in the benchmark (w(i) > 0) or the portfolio ( w'(i) > 0).In its simplest terms, phi relates the tracking error to a figure representing stock volatility(I say 'representing' because it depends on the differences in weights, but in pract...