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Thursday, September 8

8th Sep Extra - Margin Call, Hide!

Summary: Just had to post more. If this is your first read, check the two earlier posts from today. I’ve marked the outstanding links with two stars here. 

Margin Call movie coming out soon. Supposed to be lot better than Wall Street2.


Today’s Headlines – Between The Hedges

EURO CRISIS
‘Generic’
“Alternate States” research series, describing probable course of improbable events: change of currency is not a CDS-event if the new currency is G7 or AAA OECD. That would mean that if Italy returned to liras, it would not trigger CDS’s

"The Euro Is Finished" – Zero Hedge


Greece
If the bond swap goes through, new bonds will be governed under international, not Greek law.        
** High Noon Approaching for Greece? – A Fistful of Euros

Constitutional Court’s ruling allows EFSF to operate as planned. Language of the decision means there can be no eurobonds and no “supra-national” fiscal agent






ECB



“If you don't want to be at the mercy of creditors, don't borrow lots of money from them”
Reforming Europe: Debt and democracy – Buttonwood / The Economist

SWISS FRANC
SNB believed to be selling forward volatility agreements, vanilla options”

Compares the EURCHF volatility surfaces, excellent work.

OTHER
Ok, the Swiss are doing it, but others have done it and many have planned

GS put out a research piece today on selling correlation.


PIMCO’s El-Erian wrote a long piece on their “New Normal”
The Changing Landscape of Global Investing – advisorperspectives.com

Long bonds, yen, gold and moderate leverage

DIVERSION
Unspoken rule: at least 50% of published studies even in top tier journals can’t be repeated