Separating Sense from Nonsense in the Liquidity Debate
The choir of voices sounding the alarm on market liquidity got a new member last week in the Wall Street Journal’s Op-Ed pages: Stephen Schwarzman of Blackstone, one of the largest financial services firms in the world and known for its leading role in private equity....Prodigal Families and Comical Tragedies: The Cannibalization of the Price of Capital
Rembrandt’s painting portraying the return of the prodigal son is an amazing and monumental piece of art. It signifies the most joyful moment of reuniting a family and starting a new chapter/direction in everyone’s life. No matter how many times someone has seen the...Dancing with Lemmings: The Migration of Crowded Trades
We live in an epoch where volatility is becoming a trademark. We try to discover causes for this and all we are successful in doing is reshuffling symptoms. Like lemmings we follow a herd mentality that resembles a dance of morons. And as we are dancing along the...On the Chinese Wall of Steroids: Imbalances and Asymmetries
In a recent study by the McKinsey Institute total credit market debt in China is shown as the largest in the world, and that is only what we know of. The dangers are not limited just to China but are extended to the global financial system. In a world where financial...Dioskouri Brothers Confronting a Joyful Disorder: Bonds, Yields, and Negative Equilibrium
Over the course of the last two weeks, we have been observing a twist in the bond markets. Yields are rising and consequently bond prices dropping. More than $420 billion worth of paper wealth has been wiped out in the bond markets across the globe. The rooster of...Sign Up for Our Publications
