Capital Context Update: Dispersion Rising

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Muir's picture

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

 

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.

camaro68ss's picture

just buy netflix and ipads and stop worring about it

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.

Dan The Man's picture

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

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.

 

dogismyth's picture

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

DCDiamonds's picture

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

eureka's picture

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

THANKS!