In this article we analyze how to set up trading strategies on listed football clubs exploiting the peculiar behaviour of returns and implied volatility in correspondence to UEFA Champions League matches. In particular, this article is structured in four parts. In the first part, we briefly introduce the link between Read more…
US S&P closed the week at 2,834, up 0.7% during the day and marks its best performing quarter in the last 10 years being up 14% from December. On Friday, DJIA closed 0.8% higher at 25,929. The Nasdaq Composite climbed 0.8% to close at 7,729. 10-year Treasuries ended the week Read more…
History of Turkey’s crisis Over the course of its history, Turkey has been continuously striving towards beneficial economic relations with Europe. Turkey became an associate member of the European Economic Community in 1963, and later joined the Customs Union in 1995. As a result of a period of very high Read more…
As one may have noticed, over the not so recent past the German benchmark index DAX has trailed its major European country equity indices. An investor who invested four years ago in the DAX would have lost about 4% while the French CAC 40 returned 21%. With Germany as so Read more…
US The week just ended has led losses to US equity indices: the S&P 500 fell 2.16% to 2,743, thus failing to break the resistance line at 2,800-2,815. Similarly, the NASDAQ lost 2.46% and the Dow Jones decreased by 1.80%. This week has not brought major news for what concerns Read more…
Introduction The US Dollar Index was created by the Federal Reserve in 1973. The index was initially intended to provide an external bilateral trade weighted average of the US Dollar as it freely floated against major global currencies. Consequently, the US Dollar Index [ticker: U.S.DX® ] (USDX hereon), is a Read more…
Introduction Venezuela is a state in chaos; this is a systemic issue that arises from many long years of economic mismanagement from the Chavismo administration which has ruled for two decades. These issues are now coming to light given the dismal state of affairs in Venezuela, the most obvious indicator Read more…
Introduction Exchange Traded Funds (ETFs) have constantly been on the rise ever since the 2008 financial crisis. Year over year, increasing amounts of assets are placed in ETFs causing their market share (especially in the United States) to expand to over 25% of total open-end funds in 2018 according to Read more…
US This week saw modest gains on most American indexes, with the s&p increasing by 0.39% and Nasdaq by 0.9%. The Dow remained fairly stable with a loss of -0.02%. Overall the markets seem to be pricing in a relaxed scenario for tariffs as the deadline for trade talks between Read more…
Introduction After examining the main features of the repo market as well as some peculiar characteristics of the European credit repo market (https://bsic.it/the-invisible-gears-repo-agreement-and-the-credit-repo-market-part-1/) we would like to walk you through what happens when a repo fails (and why this might happen) and the recent reform of the CSDR, i.e. the Read more…
EUROPE During this week European indices have on average soared by 1% . In particular, the German DAX30 started the trading week at 11’267 and closed around 11’460 and the French CAC40 opened at 5’160 and closed at 5’215, both increasing around 1.5%. Differently from core countries, the most important Read more…
Description of Belt and Road Initiative The Belt and Road Initiative (BRI), also known as the One Belt One Road (OBOR) or the Silk Road Economic Belt and the 21st-century Maritime Silk Road, is a development strategy adopted by the Chinese government involving infrastructure and investments in European, Asian and Read more…
Introduction On Tuesday (Feb 12, 2019), right at the deadline for the decision to be made, Banco Santander announced that it had decided not to repay its outstanding €1.5bn CoCo bonds. CoCo bonds are hybrid securities mostly belonging to Additional Tier 1 capital, introduced by regulators in the wake of Read more…
Introduction Often overlooked and easily dismissed as a basic collateralised loan, repos (the short form for repurchase agreement) are much more. In fact, well-functioning (and possibly liquid) repos market is essential for the stability and efficiency of the “proper” securities markets. These is why we have defined them as the Read more…
In this article we analyze the advantages of combining together value and momentum long/short portfolios in many asset classes and in different geographical areas. In fact, they have historically shown negative correlation between them. You can exploit it by including value and momentum in a portfolio, which will have a Read more…