Summary: Just had to post more. If this is your first read, check the two earlier posts from today. I’ve marked the outstanding links with two stars here.
Margin Call movie coming out soon. Supposed to be lot better than Wall Street2.
Today’s Headlines – Between The Hedges
EURO CRISIS
‘Generic’
“Alternate States” research series, describing probable course of improbable events: change of currency is not a CDS-event if the new currency is G7 or AAA OECD. That would mean that if Italy returned to liras, it would not trigger CDS’s
** JPMorgan’s “alternate” eurozone-free universe – alphaville FT
"The Euro Is Finished" – Zero Hedge
Brussels: 'No one can leave the euro' – euobserver.com
Greece
If the bond swap goes through, new bonds will be governed under international, not Greek law.
** High Noon Approaching for Greece? – A Fistful of Euros
Constitutional Court’s ruling allows EFSF to operate as planned. Language of the decision means there can be no eurobonds and no “supra-national” fiscal agent
** Why a breakup of the euro zone is likely – Credit Writedowns
Latest Greek Economic Collapse Means Country Will Soon Be Out Of Eurozone, Or Bankrupt, Or Both – Zero Hedge
Greek CDS Spreads Go Stratospheric – MarketBeat / WSJ
ECB
Europe's central bank: The impeccable Mr Trichet – Free exchange / The Economist
“If you don't want to be at the mercy of creditors, don't borrow lots of money from them”
Reforming Europe: Debt and democracy – Buttonwood / The Economist
SWISS FRANC
“SNB believed to be selling forward volatility agreements, vanilla options”
Compares the EURCHF volatility surfaces, excellent work.
** The Swiss National Bank plays the FX options market – Felix Salmon / Reuters
OTHER
Ok, the Swiss are doing it, but others have done it and many have planned
** More on the literal Bernanke put – alphaville FT
GS put out a research piece today on selling correlation.
** Goldman Would Be Happy To Take Some Correlation Off Your Hands - DealBreaker
** Guest Post: The Market Reminds Me Of High School – Zero Hedge
PIMCO’s El-Erian wrote a long piece on their “New Normal”
The Changing Landscape of Global Investing – advisorperspectives.com
Long bonds, yen, gold and moderate leverage
Bridgewater reportedly up 25% YTD – how do they do it? – Pragmatic Capitalism
DIVERSION
Unspoken rule: at least 50% of published studies even in top tier journals can’t be repeated
How good is published academic research? – Marginal Revolution