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S&P and Price Sensitive Information
Generali
Posts: 36,411 Forumite
As you are probably aware, S&P 'accidentally' downgraded France before later recanting.
As you are also probably aware, bond yields on OATS, French Government bonds, rose during the day both prior to and after the 'mistaken' announcement.
If OATs were falling in price, another way of saying yields rose, then it would be possible to profit in various ways from that. Examples are short selling OATs or proxies for them like French bank shares, buy put options, selling call options, short selling futures and buying CDSs (Credit Default Swaps).
Further to that, if you trade 'intraday' (buy and sell on the same day) it's incredibly cheap as you don't have to fund your position (depending on what position you take).
It seems incredibly coincidental to me that OATs fell substantially prior to this announcement and later retraction. The question that needs to be asked IMO is who knew and how much time will they spend in prison for insider trading?
Again IMO, the French should be looking to get the email records of S&P employees and managers and if S&P won't play ball, European assets should be seized.
This is all decidedly whiffy.
As you are also probably aware, bond yields on OATS, French Government bonds, rose during the day both prior to and after the 'mistaken' announcement.
If OATs were falling in price, another way of saying yields rose, then it would be possible to profit in various ways from that. Examples are short selling OATs or proxies for them like French bank shares, buy put options, selling call options, short selling futures and buying CDSs (Credit Default Swaps).
Further to that, if you trade 'intraday' (buy and sell on the same day) it's incredibly cheap as you don't have to fund your position (depending on what position you take).
It seems incredibly coincidental to me that OATs fell substantially prior to this announcement and later retraction. The question that needs to be asked IMO is who knew and how much time will they spend in prison for insider trading?
Again IMO, the French should be looking to get the email records of S&P employees and managers and if S&P won't play ball, European assets should be seized.
This is all decidedly whiffy.
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Comments
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Rumors are that SAP got hacked, but these are far from confirmed - in fact, the rumours are from rather dodgy sources.“The ideas of debtor and creditor as to what constitutes a good time never coincide.”
― P.G. Wodehouse, Love Among the Chickens0 -
how much time will they spend in prison for insider trading?
It'll either be zero years, or zero months.
One or the other, that's for certain.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Bunch of lying thieves."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
i just hate the name they got ..standard...and poor? leaving the rich in peace;)0
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Shenanigans of all sorts will only become more common as we descend into chaos. Nobody is doing anything to limit the ability of modern markets to create absolute mayhem on a scale never before seen."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0
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