The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (8557)	2/24/2004 11:55:49 AM
From: russwinter	of 110194

I've actually looked at naked call writes on FVX, but they don't really appear to trade, and there is no open interest in anything. Is this the right market? quote.cboe.com The other strategy is just go with writing them on something like CFC, which will be impacted as well. Of course there you get a side benefit that even you are looking for: worsening credit conditions. In the Lehman instruments, you get nailed on the accruing interest, so that's not such a hot deal. The Eurodollar market is the best trading and most liquid, but of course that's more dependent on the Fed taking some responsibility to actually act against the inflation. I now think the market will act first, and in the outer years that the Fed doesn't control. The BOJ does control that market however, and one scenario would be that they (not the Fed) start reacting to an inflation breakout throughout Asia (including Japan, and yes I did say JAPAN) by curtailing their excessive printing press operation used to buy USTs and agencies.

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