• GoldCore
    05/05/2015 - 06:56
    Gillian Tett, markets and finance commentator and an Assistant Editor and former U.S. Managing Editor of the Financial Times, wrote an important and little noticed article last week questioning...

Prop Trading

Tyler Durden's picture

"Biggest Worry" Is "Dramatic Decline" In Bond Market Liquidity, Prudential Says





“The biggest worry of the buy side around the world is that there has been a dramatic decline in liquidity from the sell side for many fixed income products,” Prudential's David Hunt tells Bloomberg, echoing Jamie Dimon and confirming what we've been shouting about for years.

 
Tyler Durden's picture

Human Bond Traders Barely Show Up To Work As Machines Take Control





"A slow start to the week has become customary, as Monday appears to have become the new Friday," Barclays says, noting that the humans simply aren't trading in a credit market where opportunities are scarce. Meanwhile, the robots do not rest, and on the Monday they simultaneously decide that some random data point or unduly hawkish/dovish soundbite out of an FOMC voter is cause for all the algos to chase down the same rabbit hole sending ripples through a fixed income market devoid of any real liquidity, the humans will be in for a rude awakening when they get to work on Tuesday morning.

 
Tyler Durden's picture

Why The BRICs Are Less Worried About The Next Crash





When even Jamie Dimon warns that "another crisis is coming", and points to the utter lack of market liquidity and the likelihood of another flash crash, it probably means that not only has he been reading this website, but that JPM's chief prop trading group, the Chief Investment Office, infamously long three years ago is already short and just waiting for the bottom to fall out of the market. One group, however, that is not be too worried about the next global financial crash - at least superficially - are the BRICs, because according to the Russian Prime Minister Dmitry Medvedev, "the creation of the BRICS reserve currencies pool worth $100 billion will allow member states to depend less on negative processes in the world economy and bypass market volatility."

 
Tyler Durden's picture

Revolving Debt Crashes Most In Four Years, As Student, Car Loans Go Exponential; Bank Lending Freezes





There was only bad news in the just released Fed consumer credit report for the month of February. First, the "good credit", the one that consumer should load up on when they feel comfortable about the future, i.e., credit card, or revolving debt, continued its recent plunge, and in February crashed by $3.7 billion, following January's $1 billion plunge. This was the worst month for revolving credit since December 2010 and explains perfectly why the consumer has literally gone into hibernation - it has nothing to do with the weather, and everything to do with the unwillingness to "charge" purchases, which in turn is a clear glimpse into how the US consumer sees their financial and economic future.

 
Tyler Durden's picture

Greenspan 2003 Or Yellen 2015: "We Don't Know Enough About How The Financial System Works"





"...I don’t think we know enough about how the private financial system works under these conditions... If you are an institution that is doing well within the parameters under which you’re used to functioning, you will fight any change without any notion as to whether that change is good or bad. That’s because there’s a very large uncertainty premium associated with the change... "

 
Tyler Durden's picture

Treasury Collateral Shortage Crosses The Atlantic, Makes European Landfall





We're just a little over two weeks into PSPP and signs are already beginning to show that the ECB is effectively breaking the market. "The soaring cost of borrowing government bonds in secured lending markets highlights the distortions caused by the ECB's asset-purchase scheme, which analysts say could clog up Europe's financial system," Reuters notes.

 
Tyler Durden's picture

Illiquid Corporate Bond Market Will End In "Very Unpleasant Fashion"





The hunt for yield is driving investors into riskier debt at just the wrong time. With liquidity in the corporate bond market drying up thanks to new regulations, the rush to the exit is likely to be "very unpleasant," one analyst says.

 
Tyler Durden's picture

Bill Ackman Faces FBI Probe Over Possible Herbalife Stock Manipulation





Herbalife stock is up over 5% after hours after WSJ reports Bill Ackman (among others) made false statement about Herbalife's business models to regulators - in order to spur investigations into the company and lower its stock price. This comes just months after Ackman kinda-sorta-didn't-really insider-trade in the Allergan 'scam' that we detailed here. We suspect Whitney Tilson (and his Lumber Liquidators positions) is getting a little nervous now... and Carl Icahn is quietly laughing to himself.

 
Tyler Durden's picture

Japan Approaches Limit To Bond Buying Former BOJ Official Okina Warns





"The BOJ’s purchases have had a 'huge' impact on the market’s liquidity. Buying bonds at a faster pace would make it more difficult for the BOJ to exit from its easing policy when the time comes to reduce stimulus."

 
Tyler Durden's picture

More Flash Crashes To Come As Shadow Banking Liquidity Collapses





"On October 15, the deepest and most liquid market in the world demonstrated a six standard deviation move in less than two hours, a move that happens once in 506,797,346 days and a recent report by BlackRock highlights how “the secondary trading environment for corporate bonds today is broken. These examples signal that the probability of an accident is high and the stage is set for an adverse event meeting with an outsized impact on markets and possibly economies."

 
Bruce Krasting's picture

Is 105 the New 120? - A Crazy Thought On What's Next?





"Fuck the CHF and the SNB!" "Those bastards lied to us - I'll never trust them again!"

 
Bruce Krasting's picture

Closing in on One Twenty





Is this weakened system able to absorb a spike in one-directional volume? Will it step up and keep order? Or will it back off and allow volatility to roar?

 
Tyler Durden's picture

All That Is Broken With The US Financial System In One Chart





We have shown this chart before. We will show it again because, to nobody's surprise, nothing has changed.

 
Tyler Durden's picture

Is The SEC Asking These Hedge Funds Why They All Rushed Into Allergan Last Quarter?





It remains to be seen if frontrunning the general public on collusive, material, non-public information that a strategic would be about to announce a bid for Allergan is indeed "completely lawful", however we do have a question: now that the SEC is formally investigating Ackman for what may be a massive frontrunning scam, is it also looking at all the other hedge funds which reported brand new stakes (some of which also entirely in the form of calls) in Allergan in the second quarter?

 
Syndicate content
Do NOT follow this link or you will be banned from the site!