Economy Blog

The 98 days auction filled EUR 48bn of an intended EUR 50bn at 4.56%
The 1 day auction filled EUR 133bn of an intended EUR 150bn at 4.00%
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The impact of risk management techniques on market dynamics is particularly enlightening with regard to the question of asset price overshooting. VaR calculations have become a crucial element of the standard approach used by market participants to evaluate the risk inherent in their market activities and to set up exposure limits.

Of course, central banks and financial institutions should continue to encourage the use of these instruments.
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New research finds statistical “black swans” - whose namesake is indigenous to Australia - are actually one step away from the endangered species list down under….
Original Source: allaboutalpha.com

More ECB Liquidity: standard tender for 50 bn for 98 days tomorrow
Add : december 19th
And even more, up to $200bn overnight money on offer today.
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Return of the SuperSIV
The “SuperSIV” fund, set up to provide cash to structured investment vehicles hurt by subprime-mortgage holdings, plans to start buying assets “within weeks.”
A Half-Trillion in Liquidity…
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I have been working for several weeks on a model for what the fundamentally correct price for homes. I’ll tell you right off the bat that I’m not happy at all with the results.First let’s think about what factors would influence the demand curve for homes. Thinking back to micro 101, demand is a 4-part function. Price of the good. Price of other (related) goods. Here I think we’re talking mostly about rental housing and the price of financing….
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The European Central Bank loaned 348.6 billion euros ($501.5 billion) for two weeks to banks to bring down the cost of money at year-end.
390 banks bid for the two-week loans at a marginal rate of 4.21 percent.
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Barry’s offering a free trial to his quant tool…
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An official with one of Sweden’s national pension funds told an audience last week that alpha-beta separation has led to more “creativity” on his team. His approach is clean and simple…like another Swedish innovation….
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If hedge fund indices can apparently be replicated using traditional risk factors such as equity risk, why can’t private equity funds?…
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From The Second New York Fed — Princeton Liquidity Conference, 2 good papers.
1.Liquidity and Leverage
In a financial system where balance sheets are continuously marked to market, asset price changes show up immediately in changes in net worth, and elicit responses from financial intermediaries who adjust the size of their balance sheets. W…
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Today, Lindsay gets poked into Facebook….
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Adam picks apart a recent Barron’s article……
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Offical Blog of Ray Barros…
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sounds like a good book……
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The CNBC host and author is emphasizing long-term investing for his viewers and readers. What happened to the manic stockpicker?…
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Get ready for … anything. As companies, governments—indeed, entire countries—confront an array of dilemmas, the only constant will be change…
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Take-charge investors are turning to a new generation of Web-based investing communities. Whether they allow members to see one another’s trades or just share advice, such networks convey a sense of trust and transparency many people feel is lacking with…
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