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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Pitera who wrote (19841)9/1/2017 2:26:02 PM
From: Sawdusty  Read Replies (1) | Respond to of 33421
 
Hey, no problem. It's your thread and you are entitled to post what you want. It's just easier for me to remove the subjectmark than to wade through the stuff.



To: John Pitera who wrote (19841)9/1/2017 3:27:40 PM
From: ggersh  Respond to of 33421
 
Isn't hedging a hedge, just adding more leverage?

And hedge funds hedge? That's a new one on me.

Outside of some oil companies, ag companies and others
that use futures here and there the only hedge I know is
PE/WS/HF using the FED as a hedge when all their derivative
positions explode, that hedge has been in effect since 87.

Hedge funds account for much of the recent surge in credit-derivatives activity. Banks welcome the funds as trading partners, but the funds sometimes move out of trades -- "assign" them -- without telling the bank that sold them the credit-derivative contract that their counterparty has changed. This makes it harder for other participants to know whether their positions are properly hedged.