Hedging Against Oneself
According to this short Financial Times Alphaville article, Citibank's 1st quarter results had a boost from bets against itself. The article says that Citibank made money from CDS positions that increased in value when the market decided that its default risk increased. Here is another related article.
Tuesday, April 21, 2009
Thursday, April 16, 2009
A Step Towards the Right Direction
In February, I wrote an article on eBay Inc warning about a potential weakness of the otherwise formidable company. Recent news about the company are very encouraging. eBay Inc is considering the sale of Skype, the business with very questionable synergies with the company's core business. This article has more.
In February, I wrote an article on eBay Inc warning about a potential weakness of the otherwise formidable company. Recent news about the company are very encouraging. eBay Inc is considering the sale of Skype, the business with very questionable synergies with the company's core business. This article has more.
Thursday, April 09, 2009
Indices' PE Ratios
I have been mildly suspicious of index PE ratio computations. This feeling of distrust came about a few years ago after learning that a source that I follow do not include losses in its computation of earnings. Now, this and this have made me even more wary. (By the way, thanks to Dr. Greg Mankiw for the lead.)
I have been mildly suspicious of index PE ratio computations. This feeling of distrust came about a few years ago after learning that a source that I follow do not include losses in its computation of earnings. Now, this and this have made me even more wary. (By the way, thanks to Dr. Greg Mankiw for the lead.)
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