Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (894)	4/7/1999 1:31:00 PM
From: accountclosed	Read Replies (1) \| Respond to of 2794

When I posted it I was thinking that in a different time those would be very actively traded. All sorts of inflation plays, derivatives, calendar spreads, etc.

To: Henry Volquardsen who wrote (894)	4/7/1999 1:45:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 2794

Henry, >>U.S. 30-year indexed bonds seen sold at 3.89 pct...''They're tough to finance,'' another head trader said. ''No dealer desk wants to hold them.'<< A lot of investors look at the spread between the regular treasury and the indexed one to get a feel for the CPI expectations. (myself included) If there are technical trading reasons for the indexed bond to have a higher real rate than its regular treasury equivalent, then inflation expectations are actually higher than the comparison indicates. Am I understanding this correctly? If so, can you elaborate on the function of repos and the financing of bonds? Wayne