Capital Context Update: Dispersion Rising

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Wed, 04/13/2011 - 18:52 | 1167056 Muir
Muir's picture

Yeah, ok, but how's this bullish for silver?


Wed, 04/13/2011 - 19:06 | 1167090 Gold 36000
Gold 36000's picture

I understand rise in volume reducing attractiveness of trade pairs.

However I always thought increased dispersion increased potential return on FX carry trade with volume being constant?

can someone explain this.

Wed, 04/13/2011 - 19:16 | 1167116 camaro68ss
camaro68ss's picture

just buy netflix and ipads and stop worring about it

Wed, 04/13/2011 - 19:17 | 1167129 topcallingtroll
topcallingtroll's picture

Does rising dispersion compress the premium by increasing the cost of the carry trade currency or reducing the return of the asset bought with the carry trade currency? I dont know the language so it is hard to formulate the hypothesis.

Wed, 04/13/2011 - 19:10 | 1167109 Dan The Man
Dan The Man's picture

...then you understand more than me...alas

Wed, 04/13/2011 - 19:45 | 1167207 Cthonic
Cthonic's picture

HY underperformed once again and while close-to-close comparisons will leave most with the perspective that it was a dull day, we see rising dispersion as investors begin to differentiate names more effectively. After reaching down to yesterday’s lows/wides, both IG credit and S&P futures managed to creep back up to close all but unchanged. Intraday swings were much less in credit than equities though but post Obama’s deficit speech we did see a continuation of the up-in-quality trade in credit as stocks limped back up to VWAP (only to lose it to the downside into the close).


Jargon, the death knell of civilization.  Though financial argot has nothing on truckerspeak.


Wed, 04/13/2011 - 20:34 | 1167357 dogismyth
dogismyth's picture

is that you, or just your pussy dressed-up for a rough night of wall bangin

Wed, 04/13/2011 - 19:39 | 1167183 DCDiamonds
DCDiamonds's picture

Possible early stages of carry trade unwind as leverage levels decline and high beta assets are replaced with safer bets.

Wed, 04/13/2011 - 21:45 | 1167582 eureka
eureka's picture

What is HY? if High Yield, specifically what assets?


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