News Systematic strategies are back
For the second month in a row, CTAs outperformed hedge fund strategies in April. According to the Lyxor CTA peer group, the strategy was up +1.6% in April, which brings the year-to-date performance close to +5%.
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Opinion Financial correlations and loss of common sense
Isn’t correlation in finance charlatanry? We analyze this question through 4 situations that have been observed on financial markets with final investors, asset managers and proprietary traders.
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Stories Peter Cruddas, 2007 richest selfmade man in the City and U.K entrepreneur of the year
Launched with just £ 10 000 by Cruddas 18 years ago, CMC Markets has managed to develop its business on the derivatives market to private investors and is now a major global brokers on CFD ...
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Profile Quantitative Analyst: a dream career for young mathematicians
Each year, more and more young engineers or science graduates are interested in this career. But how does one become a “quant” ?
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News The inexorable growth of the dividends "futures" market
Dividend Futures give rise to growing interest among market professionals, including fund management companies based in France, as evidenced by the recent launch of strategies specifically dedicated to this market segment, particularly in Melanion Capital or Laffitte Capital (...)
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Strategy CTAs lead the pack in April
For the second month in a row, CTAs outperformed hedge fund strategies in April. According to the Lyxor CTA peer group, the strategy was up +1.6% in April, which brings the year-to-date performance close to +5%.
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Note The true nature of the derivative contract on French debt
The multiplication of misinterpretations related to the launch of the derivative contract on French debt leads to an apolitical analysis produced by a market professional to avoid amalgam and populism: This is a simple and useful contract, which was traded in the past in (...)
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Interview Pieter Entius : « Eurex Market-on-Close (MOC) delivers a listed solution for basis trading »
Higher efficiency and less risk - Eurex Market-on-Close Futures are designed to deliver multiple benefits to a market that has so far been dominated by OTC trading. Pieter Entius, Head of Trading at Flow Traders, shares his insights what are the key drivers and benefits from (...)
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Strategy Goldman Sachs : « Hedging by purchasing puts on bank shares !»
With the rise in the probability of extreme risks taking place, the purchase of puts on bank shares, considering the implicit volatility on the Eurostoxx 50, seems to be an attractive hedge for long term investors according to Goldman (...)
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Reading A fractal view of the markets, Benoit Mandelbrot
In an uncompromising book, Benoit Mandelbrot, French graduate from Ecole Polytechnique, denounces the inconsistency of the orthodox theory of finance and presents his fractal vision of the markets
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Regulation OTC transactions on derivative products will require collateral deposits!
The European Union wishes to increase the cost on purely speculative transactions. A proper system would be set up in order to allow non-financial companies to use derivative products for « legitimate» hedging reasons…
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Pedagogy Using Risk Premia for a true diversified portfolio
For investors seeking meaningful diversification of their portfolios, alternative beta strategies (sometimes called liquid risk premia) have low or no market beta and, if executed correctly, have low correlations to the major asset (...)
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Pedagogy Eurex Market-on-Close Futures
Eurex Market-on-Close Futures (Eurex MOC Futures) are designed to significantly facilitate MOC trading since the index futures can be traded at the underlying cash market index close ahead of its actual publication.
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Opinion Brexit illustrates the diversification benefits of trend-following strategies
During the Brexit, the average CTA did very well: the SG Trend Index, a performance indicator for trend-following strategies, jumped 2.9% on 24 June. Trend-following strategies outperformed both equities, with the MSCI World Index dropping 4.9%, and hedge funds in general, (...)
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Pedagogy TARN on REVERSE CMS
A major U.S bank has recently issued Target Accrual Redemption Note (TARN) on reverse CMS (Constant Maturity Swap). This product pays a coupon indexed on a reverse, capped and floored CMS until the sum of coupon payments reach a target (...)
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