May

7

Experts, from anonymous

May 7, 2015 |

 Those amongst you who receive bucketloads of bank Research (even with spam filters turned on high) will note the extraordinary versatility of sales people to be 'experts' in everything. In just the past twelve months, my counterparties have been offering risk taking 'advice' based on their expertise in:

Geopolitical events (Ukraine)

The Euro

Oil prices

Volatility

The DAX

And now… BUNDS.

They are all so clever! In all fairness 'cross product sales' and associated financial incentives for same (sales credit anyone?) is likely a driving force.

The fever pitch in the spam often occurs fairly coincidentally with slowing rates of change or reversal in the relevant sector….like Bunds now perhaps.

It is a good demonstration of misdirection, obtaining alms from customers, encouraging the wrong actions at the wrong time and bare faced hypocrisy.

One has to stand up and applaud futures broker this AM for making special phone call recommending the purchase of very short dated 15 delta BUND puts at a volatility so high that no amount of movement could give anything other than a loss.

The seeds of the next move of substance are likely in markets not in focus… Perhaps yield curve in NZD, Rice, South African Rand, or the on going Japanification of the US banking system and its ramifications for the still positive integer on the left hand side of long dated US treasury yields.


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