Weekend Reads: Interest Rate Empire

“You saw a lot of big guys” in Chicago’s trading pits, said Bernard McSherry, dean of the New Jersey City University’s business school, who spent many years on the floor of the NYSE. “Those were physical jobs. And in an open-outcry market, you could bully your way into a trade.”

Wall Street’s Endangered Species: The College Jock – (Wall Street Journal)


Pravit Chintawongvanich, head derivatives strategist at Macro Risk Advisors, estimates that Fiddy’s profit and loss statement showed a gain of roughly $27 million for the session. The options serve as a hedge against a stock selloff.

The Volatility Buyer Known as ’50 Cent’ Just Had a Huge Payday – (Bloomberg)


Traders are jumping in and out of interest-rate futures as they speculate about Fed rate increases

CME Reaps the Benefits of Its Interest-Rates Empire – (Wall Street Journal)


Commodity Futures Trading Commission (CFTC) says it needs an additional $31.5 million to carry out its mission to monitor the marketplace and analyze rules.

CFTC says it needs an additional $31.5 million to carry out its mission – (Futures Magazine)


Forty-four percent of adults say they either could not cover an emergency expense costing $400, or would cover it by selling something or borrowing money, which has continued to improve from the 50 percent who were ill-prepared for this magnitude of expense when first asked in 2013.

Report on the Economic Well-Being of U.S. Households in 2016 – (Federal Reserve)


With the resurgence in U.S. crude oil production over the last year, it was only a matter of time until shale output reached a new record. Based on recent actual production and the EIA’s forecast for a June increase of 122 MB/D (thousand barrels a day), the peak of March 2015 is only 57 MB/D away.

U.S. Oil Output Approaches Record – (SL Advisors)


Quants like to say they’re uncorrelated with other assets, an attractive characteristic when the market goes dead. But they don’t look very uncorrelated right now. Long-short portfolios turned to factors are as zombified as everything else.

Low Volatility Raises Paranoia Over Leverage in the Quant Fund World – (Bloomberg)


Skeptics of manmade climate change offer various natural causes to explain why the earth was warmed 1.4 degrees since 1880.

What’s Really Warming the World? – (Bloomberg)

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