Counterparties

"Friends Don't Let Friends Buy VIX"

"You know a trade is getting crowded when my parents start asking about it.  You know just how one sided something is when people think that even Chuck Norris can’t make money buying vol... I think selling VIX is very crowded and fraught with danger."

Analyst Lays Out China's "Doomsday" Scenario

According to Autonomous analyst Charlene Chu, bad debt in China’s financial system will reach as much as $7.6 trillion by the end of this year: an estimate which implies a staggering bad-debt ratio of 34%, orders of magnitude above the official number, and nothing short of a "doomsday scenario" for China's financial system if accurate.

Is Bitcoin Money?

"At various times in history, feathers have been money. Shells have been money. Dollars and euros are money. Gold and silver are certainly money. Bitcoin and other cryptocurrencies can also be money."

The Volcker Rule & The London Whale: "Dear Big Media, Get A Clue"

"The episode involving the London Whale illustrates how difficult it is to learn the truth about the inner working of large banks.  Big banks profit by exploiting information and conflicts found between the world of credit and the world of securities. But the London Whale episode also shows in graphic terms why the Volcker Rule prohibitions against banks trading for their own account need to be preserved and strengthened."

Bitcoin: Fake Asset Or Security?

What the success of bitcoin says about the world of dollars, euros and yen is unsettling at a number of levels, but then again, bitcoin is ultimately just a brilliantly designed virtual market that, initially at least, promised security and anonymity.  Whether those qualities can endure as the audience grows is a very intriguing question that investors need to consider.

"If The VIX Goes Bananas" This Is What It Will Look Like

This note details how a short vol unwind might develop. A violent rise in volatility could be driven by just a 3% to 4% one-day S&P 500 selloff.  Right now the risk is greatest in the VIX complex, and demand for VIX futures from three main sources could result in 100,000 contracts

Barclays Exit Of Energy Business Triggers Surge In Oil Options Trades

Several hours before the US stock market opened on Monday, the commodity world was shaken by an unexpected surge in crude options trades, with traders noting that "someone is either moving positions, blown up or getting out of commodities. MASSIVE amount of blocks going through in crude options." As it turns out they were right: Barclays was exiting the last part of its oil book.

Goldman Wins Patent For Its Own Cryptocoin Technology

Goldman Sachs has clinched an important victory in its race to transition from a stodgy investment bank into a fintech powerhouse: It has been awarded a patent for its proposed "SETLcoin" cryptocurrency settlement system.