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by deepdish7
May 23rd, 2012, 10:34 am
Forum: General Forum
Topic: JP Morgan- 2 billion trade loss
Replies: 121
Views: 21335

JP Morgan- 2 billion trade loss

Well this "bundling" should also be regarded as prop trading then, if the dealer ends up with residuals on its balance sheet. but it doesn't mean that all CMO CDO and MBS should be banned, it's a wrong logic
by deepdish7
May 23rd, 2012, 10:12 am
Forum: General Forum
Topic: JP Morgan- 2 billion trade loss
Replies: 121
Views: 21335

JP Morgan- 2 billion trade loss

<t>QuoteOriginally posted by: daveangelQuoteIt was prop trading, not derivatives themselves, who brought down Lehman and AIG I thought it was sub-prime mortgages - didn't realise that this was classified under prop tradingi thought it was prop-trading in sub-prime mortgages, wasn't it? as they were ...
by deepdish7
May 22nd, 2012, 9:52 pm
Forum: General Forum
Topic: JP Morgan- 2 billion trade loss
Replies: 121
Views: 21335

JP Morgan- 2 billion trade loss

<t>QuoteOriginally posted by: frenchXI guess that Dimon should be in pretty bad shape to lobby out the Volker rule and other financial regulations. To be sincere that the good news behind their loss.What is worse, is that the regulation proponents may leverage this moment to impose stricter regulati...
by deepdish7
May 17th, 2012, 12:13 am
Forum: General Forum
Topic: JP Morgan- 2 billion trade loss
Replies: 121
Views: 21335

JP Morgan- 2 billion trade loss

i'm not sure if the topic name is right.. am afraid loss can occur far more severe, in case Greece exits Euro.. as JPM hasn't obviously closed the position yet, 2bn seems more like MTM as of Friday last week...
by deepdish7
May 14th, 2012, 3:15 pm
Forum: Technical Forum
Topic: Bund repo
Replies: 8
Views: 13698

Bund repo

thanks again, very interesting!
by deepdish7
May 14th, 2012, 2:44 pm
Forum: Technical Forum
Topic: Bund repo
Replies: 8
Views: 13698

Bund repo

<t>thanks a lot!what is the reason that german collateral is so much bid? everyone wants to short bunds or smth? still strange how can one give better bid for german bond collateral, than for ECB depositregarding MRO - what you mean not necessarily one-week? so 3M and longer maturity tenders also go...
by deepdish7
May 14th, 2012, 11:55 am
Forum: Technical Forum
Topic: Bund repo
Replies: 8
Views: 13698

Bund repo

<r>same website displays historic rates, and difference is pretty much the same.another thing I can't undetstand - is why ECB has lower rate for collateralised 1-week repo (MRO, 1%), comparing to collateralised ON repo (MLF, 1.75%):<URL url="http://www.ecb.int/stats/monetary/rates/html/index.en.html...
by deepdish7
May 14th, 2012, 9:36 am
Forum: Technical Forum
Topic: Bund repo
Replies: 8
Views: 13698

Bund repo

hm yes but as buyer of repo, do you need a collateral at all, when you can lend at a higher rate risk-free to ECB?
by deepdish7
May 14th, 2012, 1:29 am
Forum: Technical Forum
Topic: Bund repo
Replies: 8
Views: 13698

Bund repo

<r>Hi all!I would appreciate if someone could explain, why 1 week Bund repo in interbank market (0.128% currently, eurepo which is effectively Bund repo) is lower than ECB deposit rate (0.25% currently)<URL url="http://www.euribor-ebf.eu/eurepo-org/eurepo-rates.htmlhttp://www.ecb.int/stats/monetary/...
by deepdish7
May 14th, 2012, 1:13 am
Forum: Technical Forum
Topic: discounting
Replies: 65
Views: 17131

discounting

errrr this formula makes explanations too complicated again(
by deepdish7
May 11th, 2012, 6:34 pm
Forum: General Forum
Topic: JP Morgan- 2 billion trade loss
Replies: 121
Views: 21335

JP Morgan- 2 billion trade loss

<t>If it's true that they had 100bn position in European govt or bank indices, than 2bn number may be just current MTM but not the final result (which may turn out much worse if they fully unwind, which I think they haven't done hoping for markets to calm down). Which may aggravate if Greece continu...
by deepdish7
May 8th, 2012, 11:01 pm
Forum: Technical Forum
Topic: discounting
Replies: 65
Views: 17131

discounting

<t>QuoteOriginally posted by: listsuggested a debt low: if there is no debt instrument have could offer an interest then A then A could not be used for a discounting.in reality actually, banks start to use these days two discount rates in internal pricing systems (so it's becoming a market standard)...
by deepdish7
May 8th, 2012, 4:47 pm
Forum: General Forum
Topic: Negative Swap Spreads
Replies: 83
Views: 64598

Negative Swap Spreads

<t>I again have difficulty understanding this. What do you mean the rate that 'looks better for the business'? Like if you were writing in some foreign language and using google translate to translate into English. Many things make sense separately but when combined I can't understand the whole pict...
by deepdish7
May 6th, 2012, 8:20 pm
Forum: General Forum
Topic: Negative Swap Spreads
Replies: 83
Views: 64598

Negative Swap Spreads

<t>Guys come on, let's keep discussion in a more constructive tone. List, I suggest that you agree with consensus here on Martinghoul's point that it's irrelevant where USD is quoted in below case. As USA is the primary market for USD, it doesn't really matter that LIBOR is quoted in London, as pric...
by deepdish7
May 5th, 2012, 2:36 pm
Forum: General Forum
Topic: Negative Swap Spreads
Replies: 83
Views: 64598

Negative Swap Spreads

Martinghoul - thanks a lot for confirmation, good to know when you're on the right tracklist - reread the last comments and still not getting a clear picture. why are you comparing money markets in London and US?
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