The global financial crisis continues to make front page news as governments around the world continue to announce stimulus packages and companies continue to retrench workers and show large losses or declines in profit results. During the first week of March in the USA the largest ever quarterly loss was announced by AIG at almost …
Monthly Archive: March 2009
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Mar 10
Hedge Funds…struggling
Back on January 20 in this blog I predicted that one of the trends of 2009 will be the demise of the hedge fund… http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=a8uLPVL9X8yY …I might be right. The hedge fund used to thrive in tough times…not this time. Send article as PDF
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Mar 10
Capital Protected Products…nothing but an expensive put option
Capital protected products are in vogue at the moment thanks to the massive losses experienced and the scary economic times we face. Capital protection appears to come in all shapes and sizes…there are Constant Proportion Portfolio Insurance (CPPI) methods, sometimes called dynamic threshold management; futures and derivatives trading methods; Zero Coupon Bond and Call Option …
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Mar 03
So much for market predictions!
So the RBA didn’t change rates and the yield curve was no where predicting it this tie around. As a result of the no change the yield on the September 09 Government bond has promptly increased by around 10bps to 2.71%. Looks like a rate cut next month??? Send article as PDF
Mar 02
Maybe I need to change my mind…
After a disastrous Wall Street, thanks to a record loss posted by AIG (-US$62billion for 1 quarter…Yikes!), and Wayne Swan’s warning about the slowing Australian economy a couple of days before the latest GDP results, Australian Government Bond Yields have dropped signficantly and the September 2009 Bond is now trading on a yield of 2.61%. …
Mar 02
RBA Cash Prediction
Its the day before the RBA announces its latest cash rate so I thought I’d come in with a late prediction. Its pretty simple really…September 09 Government Bonds are trading at a yield of 2.82% today so the market is expecting one of two rough possibilities… the Reserve Bank drops the cash rate by 50bps …