Friday, July 31, 2015

More on US bond liquidity

The FT.com looks at US bond market liquidity:

There are two major issues:

1) the risk of price shocks due to the lack of liquidity -

“There will be discontinuous pricing,” says Richie Prager, head of trading and liquidity strategies at BlackRock, the largest asset manager in the world. “Anyone who doesn’t expect some sort of discontinuous pricing as interest rates normalise, as volatility returns, is really just not realistic.”

2) the intermediation role that is now unfulfilled

"Anecdotally, traders say they used to step in during volatile price swings to help clients, with the aim of securing more business for when markets were calm. It was part of the client relationship. As banks have reduced balance sheets and declining fixed income revenues, the incentive to step in during market turmoil has been reduced".

There is a real risk  of market gyrations and of a new form of intermediation to reduce the thereat of these price movements. 

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Wednesday, July 29, 2015

Nobody Knows How Much Bonds Cost - Bloomberg View

Nobody Knows How Much Bonds Cost - Bloomberg View shows the role of intermediation:



"And it probably is. It's just that the latter skill set is better for figuring out what bonds do cost. Dealers have lots of information about order flow, market sentiment, which customers want to buy and sell which bonds, etc. They are good at price. Investors have lots of information about companies and credit and economic fundamentals. They are good at value. When they think the price is out of line with value, they trade. If they don't know the price, then they don't know how out of line it is with value, and they don't trade. "


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Tuesday, July 28, 2015

printing - "Print it later" software - Ask Ubuntu

printing - "Print it later" software - Ask Ubuntu: "Sometimes when I'm working on my laptop, I want to queue up a few documents to print later, since I'm not connected to a printer at the time."



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Wednesday, July 15, 2015

git ready » get a file from a specific revision

git ready » get a file from a specific revision: "Enter git show, which is an awesome tool for this job. This command is quite versatile and deserves several tips on what it can do, but let’s stick to the task at hand: we want to pull a file’s contents out from a specific revision. Usually the command would be done like so"



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git ready » get a file from a specific revision

git ready » get a file from a specific revision: "Enter git show, which is an awesome tool for this job. This command is quite versatile and deserves several tips on what it can do, but let’s stick to the task at hand: we want to pull a file’s contents out from a specific revision. Usually the command would be done like so"



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How to make a graph of heteroskedasticity with TikZ/PGF? - TeX - LaTeX Stack Exchange

How to make a graph of heteroskedasticity with TikZ/PGF? - TeX - LaTeX Stack Exchange: "This graphic is a typical representation of the problem of heteroskedasticity in a model of linear regression. If someone could guide me on how to do with tikz , I would be very grateful."



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Tuesday, July 14, 2015

The Bloomberg terminal: clunky, costly, addictive, ubiquitous — FT.com

The Bloomberg terminal: clunky, costly, addictive, ubiquitous — FT.com: "Moreover, rival data providers such as Thomson Reuters and Dow Jones are attempting to chip away at its incumbent advantage in instant messaging. Even banks are unhappy about shelling out small fortunes for what some wags say is a glorified chatroom, and are spooked by Bloomberg’s dominance."



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