Louis, do you know what they're referring to here?
I was wondering specifically what they were referring to as "economic derivitives" in the excerpt below:
from cbsmarketwatch this morning
"Traders in the economic derivatives market run by Goldman Sachs, Deutsche Bank and ICAP are betting that payrolls will rise about 140,000. The market allows traders to buy contracts based directly on the payroll report. The first auction was held Thursday afternoon, to be followed by another Friday morning to accommodate European traders.
And while 80 percent of the economists clustered their forecasts between 100,000 and 175,000, only 30 percent of the derivatives buyers were within that range, said Bill Cassano, vice president for economic derivatives for Goldman Sachs.
"There is hedging interest on both sides," said Oliver Frankel, managing director for economic derivatives at Goldman Sachs, but most of the hedging is on the upside." |
