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Non-Tech : Paired Trades and Hedging Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (108)	7/19/2007 7:40:02 AM
From: Robohogs	Respond to of 136

The super trade would be short Deutsche (if subprime spreads to credit generally, they get hit worst unless their trading ops can clean up, and they have great fixed income trading) and long ????? I cannot figure a safe long as Goldman prop trading would likely get hit hard, Bear is a goner, Lehman is as good in fixed income (and it is as important), JPM is more leveraged to sponsors (no pun intended!), Citi has been bad for years, .... Maybe make it a 5 way trade: Short DB, Short Lehman Long Merrill, Long Morgan Stanley, Long UBS with the shorts having 1.5 weights and the longs 1.0 weights. Jon