[FelikTen]

Raj Gupta charged with insider trading. Just how far does the rot go?

[Badyalectlawl]

If you were in Canuckistan and earning Canadian Colored Money, would you invest in "currency neutral" US index funds or no?

[orbidewa]

If you were in Canuckistan and earning Canadian Colored Money, would you invest in "currency neutral" US index funds or no?

I live in a risk neutral world. If you believe that the Canadian dollar will appreciate further relative to the native currency of the equities in question then you should express this view with "currency neutral" funds; otherwise not.

[Belindanan]

I just finished reading "Jimmy Stewart is dead" by Laurence Kotlikoff. Another one
of the proposals to reform the banking system. Not bad...
Not perfect, but more or less anything's better than the current system. Next up:
a paper about the original Basel Accords. I want to read up on history of the accords.

[DaleJrGirl]

BTW what happened to Saras? Is he still around?

[Pheddytrourry]

Do/Did institutional investors pay attention to credit ratings on structured finance products? Or just do there own research?

[nickayary]

You are both idiots.

Thank you. From you, that is a compliment.

I do love compliments. I could listen to them all day.

compliments

[vipBrooriErok]

Speak of demolition.
Please continue ......

[overavantstandard]

btw, It's possible that the first faction I mentioned above doesn't actually exist and is just my bastardized misreading of people from the second.

[Fhgzmftq]

The future is a random variable with some distribution X. The risk-neutral measure is, roughly, a probability distribution X* such that, if the future were distributed according to X*, the current price of all assets would be equal to the expected future cash flows discounted at the risk-free rate of return.

[Cydayshosse]

You're an idiot. Go away.

[PypeMaypetasy]

Future Marines, right there. Most of them would get through OCS first try, also.

[yahyynzer]

I think BlackCat and Braindead don't know what risk-neutral means, though I can guess at what they think it means. I'm not totally sure what it means myself however. Could someone define it?

When you're talking about risk, neutral means those territories which aren't in the control of any player. It's perfectly reasonable to mock people who's entire risk world is neutral because a) it means they are boring people without enough friends to properly fill out a risk game and b) they somehow managed to lose to a non-player which can't attack.

[Hodstcopter]

You haven't been on my ignore list in months, you twit. I put people on time outs, not permanent suspension.

[purchasviagra]

I often think "there but for the grace of God go I" when reading KH's posts.

[EmxATW5m]

I just like KH's fake arrogance. Gets people riled up.

[vicgirl]

I live in a risk neutral world. If you believe that the Canadian dollar will appreciate further relative to the native currency of the equities in question then you should express this view with "currency neutral" funds; otherwise not.

More to be said on this: replicating the returns of an asset in a numeraire other than its own is impossible without a liquid quanto market. I doubt one exists even for major US indices and the CAD. Even understanding this is a nontrivial issue in mathematical finance. I would be wary of such a complex strategy being sold to retail investors.

[Ferkilort]

No one has any opinions on discounting liabilities?

Bit of a niche topic, I'd be a bit surprised if anyone did. I work in finance (sort of) and I wouldn't.

[rasiasertew]

Bit of a niche topic, I'd be a bit surprised if anyone did. I work in finance (sort of) and I wouldn't.

I have some expertise in the calculation of credit valuation adjustment so I have thought about this issue.

[effebrala]

Are you still following me around, twit?