Recommending Zero Hedge - Going Til It Stops

April 15th, 2009 · No Comments

Bill-Coppedge27sep08-1  original content selection by MortgageNewsClips.com

One of my new favorite blogs is Zero HedgeLots of thought provoking original content. 

Here are 3 posts that fascinated me.  The underlying theme is similar to others we have seen.  Many things persist until they simply run out of steam.  Often the aftermath is not pretty.

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going til it stops - Quantology Revisited: The Negative Convexity Implications Of Delta-Hedging - Posted by Tyler Durden - … I thank an anonymous reader …taking the
convexity argument one step further from merely structured finance to the entire market … But a simplified attempt: we have crossed into territory where the negative convexity consequences of delta hedging will keep on pushing the market in a straight line in whatever direction it is moving until we see a violent reversal and the delta hedge breaks due to lack of vol to “feed it”, which will be, in the parlance of our times, the market’s epic fail… - Zero Hedge 

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this one is really scary - who is GETCO? - The Incredibly Shrinking Market Liquidity, Or The Upcoming Black Swan Of Black Swans - by Tyler Durden - … Let’s back up. I recently posted a chart which tracks equity market neutral strategies: in essence a cross section of quant funds for which there is public performance tracking. The chart is presented below  …  Zero Hedge

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Merrill Let Loose On The Quant Scent - In a report released yesterday, it is somewhat gratifying that Merrill Lynch analyst Mary Ann Bartels agrees with Zero Hedge conclusions about possible near-term market volatility events as a result of quant fund deleveraging. - Zero Hedge




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