Michael Lewis famously lambasted Salomon Brothers clients in Liars Poker thirty years ago as being intellectually inferior and ignorant to the risks they purchased from the savvy Wall St bankers. The 3-6-3 club (borrow at 3%, lend at 6% and be on the golf course at 3pm) is a story Lewis relates about his sucker […]
https://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttps://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2016-06-17 04:19:022018-05-14 04:19:47Less turnover means more liquidity in the new finance world...PLUS a bonus Fed bloglet!
“Possession is 90% of the Law” is the famous, unattributed saying in English Common law. In the context of proving ownership of an asset, being in possession of that asset makes a pretty strong presumption that you own it. The problem with assets that are electronically generated, registered and traded is that they do not […]
https://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttps://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2016-05-06 04:20:112018-05-14 04:20:46Blockchain beware: Old Systems Title and non-Markov processes
“It’s a very simple principle: You want to give financial advice, you’ve got to put your client’s interests first.” – President Barack Obama, February 23, 2015 From time to time my avid reader base suggests the topic for one of my blog posts. My good friend Ted, drew my attention last week to the new […]
https://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttps://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2016-04-11 04:23:592018-05-14 04:24:59How should I know what to do, I'm just your fiduciary?
At the height of its influence in the late 60’s and early 70’s, Monetarism held that money expansion could have powerful short term effects on GDP and Employment. This appealed to policy makers since it offered a cheap way to manage the macro-economy and elevated Milton Friedman to rockstar status. Quite honestly, Friedman would have […]
Way back in my first year of Grad School, I enrolled in ECO 401: Studies in Monetary Theory. To my amusement and surprise, the entire semester was spent deriving the Basic Neo-Classical Model and its extensions within the ‘Real Business Cycle Theory’ framework. RBC was the most promising development in macroeconomics for decades. The amusing […]
I have banged on many times about the drastic collapse in the velocity of circulation of money. This is a fancy way of saying that banks and individuals don’t want to hold the money that the Central Banks have been throwing at them for a decade. Despite the attempts of the Central Banks to ‘reignite […]
https://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttps://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2016-02-01 04:29:332018-05-14 04:30:09Negative interest rates: The cost of monetary saturation?
It is said that 2 things drive ambitious people: Money and Power. Those that prefer money gravitate toward finance and business where they can live relatively private lives with the comforts of wealth. Those that prefer power gravitate toward politics where they are publicly scrutinised, but get to impose their beliefs on the lives of […]
If you are like me, you tried to steer clear of Operations Research at university for as long as you could. OR, for those of you who either don’t know or delightedly forgot, is the practical application of optimisation methods to real world problems. Dull but really important if that’s your bag… Netflix has emerged […]
https://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttps://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2016-01-19 04:30:572018-05-14 04:31:33Netflix attempts a Global Optimisation ... plus the latest release from DJ Dr Fish
“For all the talk of the challenge facing officials as they orchestrate higher rates with so much money sloshing around, Thursday’s market operations weren’t much different in scale than previous days. And the benchmark rate rose 0.2 percentage point, or 20 basis points on Thursday — practically to the middle of the Fed’s intended range.” […]
https://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttps://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2016-01-07 04:32:162018-05-14 04:32:53What happens if I know that you know what the Fed knows?
There is nothing original in this post. However, with a number of mutual funds closing their doors over the last few days, I thought it might be worthwhile discussing why an ETF structure should be more resilient than the standard mutual fund. ETF’s and mutual funds are both derivative securities. Their intrinsic value depends on […]
https://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttps://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2015-12-15 05:04:112018-05-14 05:04:42The ETF's subtle advantage over a mutual fund