Recent content by myqee

A couple theories behind the bill failure: some congressman thought there were enough votes to pass the bill so they decided to vote against it so they can tell their constituents that they are with them. Another one I heard is that some of the congressmen saw the international stock market...

I just feel there is something fundamentally wrong with this. What's wrong is that by fanning the flames you are **causing** the company to actually go down (by lowering it's ability to borrow). That's quite different from pumping a company because raising the price of a stock does not (usually)...

Why would it ever be justified to fan the flames? Why would you have an interest in seeing a company burn? I think shorting as a hedging strategy is probably marginally okay (except that you could also be using puts) but shorting as a bet that a company will go down seems just counterproductive...

I think it is important to have realistic expectations. If you are trying to predict the future, it isn't happening. If you are just trying to improve your odds then it's a no-brainer. As casino operators know very well, it only takes a tiny edge to make money (of course, what kills everyone is...

I think if we look at the time course of default rates for subprime mortgages, one can at least get a ball park projection -- for example, 2008 2nd quarter delinquency rates for all single-family residential mortgages was around 4.3% and this figure was around 2% in 2006 so by simple linear...

Thanks for the comment. My point though is not simply to promote mark to model, but to promote a more straightforward and interpretable model. For example, I think one reason the press and politicians can't even start to imagine talking about models is because the ones being used by...

I actually code better with the TV on. I'm not really paying attention to the TV except some of the bits and pieces filter through. It's a strange habit of mine.

Yes but without the silly projects every week. Just pure money making. Period.

I think they should make a new reality show based on money-making as a sport. They should have 10 or so contestants who will all compete with one another for 6 months to try to make as much money as they can by any means -- but of course, the methods must be legal.

I think the worst case scenario defined in terms of projected default rates is useful because it connects the value of an asset with an interpretable figure -- i.e., is it ridiculous to assume that 80% of subprimes will default, or 50%, or 25%? That way at least we can make a gut-feeling...

I think after a point, it is no longer a matter of greed. It basically becomes a sport, i.e., trying to make more money for the sake of improving / proving one's abilities...

I am no expert in MBSs and CDOs but I had a novice question. I know the argument that gets repeated time and time again in the press is that if a security is illiquid, then it's value cannot be defined. I'm just curious though, why isn't there another straightforward way to estimate the value of...

You know the mob has already been active participants in the stock market (from what I hear there are floor traders on the NYSE that are connected and tied to pump / dump or other schemes). Perhaps it's a matter of time before they start manipulating derivatives. (Actually I wouldn't be...

That together with Gramm's repeal of the Glass-Steagall act, and the repeal of the uptick rule are serious contributing factors to the recent instabilities. Also don't forget that Gramm's wife was the head of the Commodity Futures Trading Commission under Reagan and was a director on Enron's...

As an outsider of the field, I am curious to know what the job market is like for starting quants in derivatives. I would imagine it's not very good at the moment. Or maybe there is a greater demand with all the calls for better risk management? Thanks in advance. myquee