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Monthly Archives: March 2009

Trading platform transparency

There are many alternative trading systems (ATS) in the fixed income markets… they have slightly different price discovery, quotation and trade reporting structures… think of them as “liquidity pools”… I’ve always thought the important thing for market transparency and fairness is that all investors have access to all bids and offers on an ATS (think of […]

Message to Washington

  How it looks from upstate NY… I live in Kirsten Gillibrand’s former Congressional district… I think there will be low turnout for the NY-20 race… no surprise … there is obviously a lot of money being poured into the district to promote two unknown candidates… which is not such a big deal…  The big […]

Nationalize or overpay for assets

Analysis and discussion with Paul Miller of FBR Capital Markets (Bloomberg News)… Mr. Miller says… the whole loans are on the bank’s books at 97-98 cents on the dollar and it’s likely they are worth 70-80 cents… so there will be minimal incentive for the banks to sell at a loss… Mr. Miller says the […]

Derivative trade reporting

 Here is a simple way to create public price reporting of OTC CDS… it would be very simple to turn the DTCC Warehouse into a public trade reporting system like TRACE is for corporate bonds… the winds seem to be blowing towards keeping this a dark market though… too bad… from Wall Street and Tech … ~~~~ […]

Meet the Press

Visit for Breaking News, World News, and News about the Economy

“dark side” of wholesale funding

The Dark Side of Bank Wholesale Funding Rocco Huang Federal Reserve Bank of Philadelphia Lev Ratnovski International Monetary Fund November 2008  Abstract Commercial banks increasingly use short-term wholesale funds to supplement traditional retail deposits. Existing literature mainly points to the “bright side” of wholesale funding: sophisticated financiers can monitor banks, disciplining bad ones but […]

Does banks’ size distort market prices?

 Evidence for too-big-to-fail in the CDS market ~ Discussion PaperSeries 2: Banking and Financial Studies       No 06/2009 Discussion Papers represent the authors’ personal opinions and do not necessarily reflect the views of the Deutsche Bundesbank or its staff. Deutsche Bundesbank, Wilhelm-Epstein-Strasse 14, 60431 Frankfurt am Main, Postfach 10 06 02, 60006 Frankfurt am Main Tel +49 […]

Glacier National Park

Oh America… so beautiful… Avalanche Lake, in Glacier National Park…  Montana


From NPR… listen to Frank Partnoy on derivatives (MP3 file)….  excellent discussion of derivative products, how they are sold, Congressional efforts to regulate them and the instability they add to the financial system… (running time ~ 40 minutes) March 25, 2009 · Years before the current economic crisis, law professor and former Wall Street trader […]

2005 cohort

From my comments to the SEC on raters…. Is the proposed application of the rule to prospective credit ratings, i.e., credit ratings that are initially determined on or after June 26, 2007, appropriate and do commenter’s believe it would provide meaningful information if the rule was limited to credit ratings made on or after that date? […]