Worrisome Sings Series: Low rates erode banks’ profitability and rises pension deficit
Sep 28, 2016 11:01 am UTC| Commentary Economy Central Banks
The debate about the cost and benefits of low rates has started heating up. Central bankers like Mario Draghi, Janet Yellen speak in favor of low rates arguing that they have brought stability and without them, the world...
FxWirePro: SNB chairman defends negative rate policy – Option portfolios for Swiss franc
Sep 28, 2016 10:37 am UTC| Central Banks Commentary
The positive flow position for CHF is enhanced by an ongoing re-appraisal of the SNBs interest rate policy. Negative interest rates can work in a small economy is what the chairman of a Swiss national bank said...
Sep 28, 2016 10:22 am UTC| Central Banks Commentary
Apart from Sterling the Swedish krona has recorded one of the weakest performances amongst the G10 currencies this year. That is particularly interesting as the Swedish economy is growing at a comparatively high...
FxWirePro: Buy Swiss franc with 2:7 risk reward ratio
Sep 28, 2016 09:51 am UTC| Commentary Economy Central Banks
We expect the Swiss franc to be an outperformer among the group of majors, even if the U.S. Federal Reserve moves with a hike in rates. Swiss franc, thanks to the intervention of the Swiss National Bank (SNB) remains quite...
FxWirePro: Prefer selling yen risk premia post-BoJ via writing EUR/JPY straddle
Sep 28, 2016 08:18 am UTC| Central Banks Research & Analysis
Median 4-week horizon returns (vol pts.) and information ratios from selling cross-yen 6-week straddles in 2016. Options delta-hedged daily at LDN close using smile forward deltas and option-expiry matched...
Sep 28, 2016 07:47 am UTC| Research & Analysis Central Banks
Please be noted that the skewness in implied volatility of 3m tenors of this pair signifies the hedgers interest in OTM put strikes. While delta risk reversals of the similar expiries reveal more sentiments in hedging...
US election outcome likely to be strong statement on interest rates, dollar and Fed
Sep 28, 2016 07:14 am UTC| Commentary Central Banks
This years race to the White House has been like no other. Lots at stake here, trade policies, foreign policies, immigration policies, as well as domestic policies. In addition to those, the race has included an area,...
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