Originally posted at iBankCoin
How lovely. Remember a few months ago when Credit Suisse unceremoniously terminated XIV, depleted the accounts of millions in an after-hours session for the ages. While all of that was happening, muppets getting muppetted, Goldman's trading desk was raking in a fucking fortune -- $200 million to be exact.
Equities sales & trading revenue $2.31 billion, estimate $1.85 billion, up 38% from $1.67 billion.
As Zerohedge points out, Goldman warned of an impending XIV collapse in a note three weeks before it happened.
"VIX ETP rebalancing would be most impactful should there be a quick SPX selloff near the end of a trading day, pushing issuers to rebalance positions quickly to avoid unhedged overnight risk (ETN issuers) or excessive tracking error (ETF issuers). With the rebalancing need primarily driven by inverse products instead of levered long products, a multi-day volatility spike (e.g. VIX futures rise 1-3 points for several days in a row) would be less impactful than it would be with more levered long product open interest, since absent inflows the inverse products would shrink quickly on an initial vol spike (and their vega-buying is limited to the total position they are currently short)." On February 5th, 2018, Goldman's trading desk, led by Managing Director David Casner, made $200 million on its VIX trade. To put that into perspective, the trading desk typically makes $200m per annum and rarely does more than $100m for a day. Last year it happened just 4 times.
It's must be good to be King. Reminder, only 'complete morons' lost money in XIV.
Only morons who didn't read the prospectus thought $XIV would not trade to zero. Here is the CEO of @CreditSuisse explaining how it all worked. He read the prospectus and knew it would trade to zero. Did you @RampCapitalLLC ? Did you @howardlindzon ? pic.twitter.com/krteWmvjep
— The_Real_Fly (@The_Real_Fly) March 15, 2018
NEVER FORGET -- it was 'complete moron' $XIV traders who didn't know the different between a stock and a bond who blew up and made stocks go down in February of 2018. pic.twitter.com/3E1BM3q30R
— The_Real_Fly (@The_Real_Fly) March 15, 2018
Eat the rich. Go ahead and do it.
Comments
Create the circumstances and then benefit.
Nice.
It wasn't Goldman. It was me. They just made a commission on my trades.
In reply to Create the circumstances and… by BandGap
Fast acting on the behalf of credit suisse, during the great bankster crisis of 2009 it stopped trading on some of its ETNS at the bottom, then waited something like 7 years to give the money back to the suckers holding ........ ( note to self never buy a ETN )
hmm, David Casner, another one of those "nice folks next door"...?
(copyright - David Irving)
I'm sure they were bidding up vol, right at the close and in the post market, then poof! XIV and UVXY collapse,
extreme scumbaggery, but hey that's what they're good at
Disgusting animals hate the whole group of these Israelis.
Never a Financial Crisis, just learn and understand the movement of worms at dusk. Goldman worms!
Well, why were all these fucking assholes short vol? Fuck em. I'm glad someone made money off their fucking stupidity. Sorry it was a bunch of greasy bankers and not me, but oh well. I lost money trying to short the market while these assholes were getting rich driving vol to sub 10. Then they lost it all. Too bad, so sad.
OK, I GIVE UP! WHO LOST $200M? SUCKERS, ONE AND ALL.
notes and structured products are there to fuck you
Don't buy it if the prospectus requires a 3-ring binder.
When nine hundred years old you become, look this good you will not.
that's $20k per ex-Deutsche Bank Employee.
Goldman's "warning" was written in the same central bank gibberish we hear whenever a fed chair gives a report to congress. These types of statements are provided as cover for the massive profit taking they were expecting, while they knew the whole time only insiders knew what the fuck they are talking about. When these big boys have taken massive positions, you better watch out if you're on the other side.