The Hidden Risk on a “Hedged Position”
How the International Swaps Dealer Association crippled the sovereign bond credit default swaps market -- and why that matters to you
By Jason Farkas
11/10/2011 2:00:00 PM
Jefferies & Co, Inc. just announced that they have reduced their holdings of European sovereign debt by $2.2 billion. But just last week -- and for months prior – many holders of European debt declared themselves to be “hedged” against any risks via credit default swaps (CDS). Here's what might be happening...
Filed Under: debt crisis, debt downgrade, derivatives, European debt crisis, European Union (EU), eurozone, Greek debt
Category: European Markets
By Vadim Pokhlebkin
9/29/2011 6:45:00 PM
Novice traders (and investors) usually think that an accurate forecast is all they need to succeed. You read "a good forecast," you open a trade -- and then you close it. Buy low, sell high, wham-bam -- you’re rich. That happens only if you’re really, really lucky. But let’s consider a more probable trading scenario...
Filed Under: derivatives, Dick Diamond, futures trading, Nasdaq Composite, S&P 500, technical analysis, technical indicators, trade targets, trading lessons, trading lessons
Category: Stocks
By Editorial Staff
10/6/2010 11:30:00 AM
This is Part VI of our multi-part series of questions and answers with Robert Prechter, president of Elliott Wave International and the world's foremost authority on Elliott wave analysis. We are posting a new part every business day, so come back to elliottwave.com tomorrow for more!
Filed Under: Robert Prechter, social mood, U.S. Treasuries, Treasury bonds, Fannie Mae, inflation, derivatives
Category: Stocks
Ban on Short Selling: Are European Markets Now Safe?
"A ban on short selling creates a market with no latent buying power at all," says EWI president Robert Prechter
By Vadim Pokhlebkin
9/23/2010 4:45:00 PM
Sep 15 (Reuters): "The European Union's executive unveiled a blueprint on Wednesday to curb or ban short-selling and tighten controls on derivatives..." If you're wondering whether this will save European stock markets from another meltdown, think back to the summer of 2008, when the U.S. Securities and Exchange Commission made a similar move. Do you remember where the DJIA went shortly after?
Filed Under: European Union (EU), short selling, derivatives, Robert Prechter
Category: European Markets
By Editorial Staff
7/20/2010 6:15:00 PM
Banks of all sizes are riskier than they used to be (think about portfolios stuffed with derivatives, emerging market debt and non-performing commercial loans), so it makes good sense to have your own personal stress test to find out which you can trust. This special report gives you what you need to know -- plus a list of the Top 100 Safest Banks in the U.S.
Filed Under: derivatives
Category: Classic Prechter
By Susan C. Walker
10/23/2009 4:15:00 PM
Bob Prechter is issuing a second edition of Conquer the Crash with 188 new pages of real-time commentary on markets and the mounting prospects for deflation -- rather than inflation -- to become the true threat to the U.S. economy. In the first edition, he described dozens of today’s financial and economic troubles. He not only explained why they would happen but also advised readers how to protect themselves from a deflationary depression. Many of the events forecast in the book still lie ahead.
Filed Under: conquer the crash, deflation, bailouts, derivatives, Fannie Mae
Category: Classic Prechter
By Jason Farkas
10/21/2009 1:45:00 PM
An increasingly loud chorus of investors expects the imminent demise of the US dollar and US Treasuries. They also expect that an exploding monetary base and the US’s structural problems will lead to massive inflation. This opinion may prove to be correct in the very long run, but evidence continues to mount that deflationary will come first.
Filed Under: U.S. dollar, inflation, deflation, Robert Prechter, emerging markets, derivatives
Category: U.S. Economy