Tough times but you have to take the lows with the highs!Original Post Deleted
Only silver lining is that cash-futures yield trades have realized basically all of their PnL months early as the futures premium has been crushed
Tough times but you have to take the lows with the highs!Original Post Deleted
Only silver lining is that cash-futures yield trades have realized basically all of their PnL months early as the futures premium has been crushed
Diem association dissolving.
https://www.bloomberg.com/news/artic...iem-sale-talks
The trade I've banged on about here is long the coin, and short the futures contract to March or June to capture the premium on the futures.Original Post Deleted
When markets crash, futures prices fall faster than spot, and that premium shrinks bigly. This means that rather than having to wait until March or June for my yield, I end up realising it ahead of time, which is roughly what the recent crash has done.
This trade has been written about by Bloomberg, I linked in the past and you can read more about it from them if you don't believe me.
It was good for the first few months, right?