<t>Actually on Day 2, the client is NOT unwinding the swap. He merely sells in the market (that's why I was asking if it's covered short sell).The unwinding only happens on Day 9. So I was guessing the client purchased back the physical shares from the swap desk, and "covers" the short position...co...

<t>Thank you very much. One follow up questions:When the swap unwinds, i.e, when the fund client bought back the physical shares from the bank's swap desk, what happens to the fund's exposure? Since the fund doesn't have any exposure after Day 2. Now that it bought back the shares during the unwind....

<t>I have a scenario like this :On Day 1, fund client entered into an equity swap with bank swap desk for a long swap position on 100 shares of ABC company. Bank swap desk also simultaneously purchased 100 shares of ABC to hedge its position (short swap leg) at $4 per share. On Day 2, in view of poo...

<t>I stumbled upon this observation that in the trading of certain thinly traded stocks, you will see this one broker (say Broker A) switching between Ask and Cancel order within seconds, and it just goes on and on and each ask price is lower then the previous one, eventually driving the price down....

<t>Could someone enlighten me on : why would a company issue zero-coupon convertible bonds at an extremely low conversion price?For example, company ABC's shares are currently trading around $1.00. The company decides to issue say $1mil zero-coupon CBs to some investor at a conversion price of $0.05...

<t>Hi all,I have relatively simple and straightforward question: why would a company's share price go up, after the announcement of a takeover (or reverse merger) offering a price at substantial discount ?For example, ABC Co. shares have been trading at $2.00. One day, ABC announced that it will iss...

<r>Hi all,I was looking at this website for calculating stock price probability (<URL url="http://www.optionstrategist.com/free/analysis/calcs/probability/index.html"><LINK_TEXT text="http://www.optionstrategist.com/free/an ... index.html">http://www.optionstrategist.com/free/analysis/calcs/probabil...

Yes that made sense and would be a very likely scenario. But what if we know for a fact that the desk did not sell that much earlier during the day, what other explanation could there be ?

<t>Hi all, I came across this trade a while ago and was a little bit confused by the arrangement.So on one of the index rebalancing day, the trading desk did a trade with a client on stock A where the desk is guaranting to buy from the client at say, 2bps outperformance of the closing price on that ...

<t>Hi all,I am just wondering what type of manipulation could potentially happen on the day that an index rebalances?The few scenarios I can think of are :1. Knowing that clients are ready to "sell at the close", dealers' prop desk deliberately sell large amount towards market close in order to take...

Has anyone heard of this hedge fund called Tribridge Capital ? It's an asia-focused fixed income fund..THanks!

<t>A couple of general questions on transistioning into a corporate credit analyst role:- coming from a structured finance credit background (mbs/abs/cdo), how difficult is it to transition into a corporate credit type of role?- What are some of the useful guidebooks/readings on corporate credits, d...

<t>A couple of general questions on transistioning into a corporate credit analyst role:- coming from a structured finance credit background (mbs/abs/cdo), how difficult is it to transition into a corporate credit type of role?- What are some of the useful guidebooks/readings on corporate credits, d...

Thanks for the reply. so in terms of actual investment activities/capacity, would you say there are a lot more restrictions within an IB SS group than in a HF?