tyb
'Relentless Treasury Surge Spurs Reckoning as Cboe Delists ETN
Funds betting against Treasuries have slumped as bonds surge. Haven rush pushes 10-year yields to unprecedented levels. The $451 million ProShares UltraShort 20+ Year Treasury fund, or TBT, plunged to the lowest since it was launched during the global financial crisis, before trading was halted. Meanwhile, the Chicago Board Options Exchange delisted the iPath US Treasury Long Bond Bear exchange-traded note, DLBS, Barclays Plc said in a statement. The $931,000 ETN closed below $3 on Feb. 28. And the situation may get worse for other products betting against the world’s largest bond market. The rush for haven assets intensified after Saudi Arabia declared an all-out oil price war, adding to the wall of worries over a looming recession and signs of strain in credit markets. The entire U.S. yield curve fell below 1% for the first time in history on mounting expectations the Federal Reserve will cut rates to zero in the coming months. Benchmark 10-year yields dropped as low as 0.31%, while 30-year rates dipped below 0.7%. That’s been a boon for bullish Treasury funds such as the $23 billion iShares 20+ Year Treasury Bond ETF, ot TLT, which rose to a record high on Friday.
Before the CBOE notice on the delisting, Barclays announced a reverse split of DLBS and two other ETNs. The issuer planned on a 1 for 25 reverse split of its $9 million iPath US Treasury 10-year Bear ETN, or DTYS, and a 1 for 15 ratio for its $3 million Barclays Inverse US Treasury Composite ETN, or TAPR, effective on March 16. Reverse splits normally follow big declines in certain securities, and are a maneuver used many times to prevent delisting. However, a recovery depends more heavily on the Treasury rally reversing, according to CFRA Research.
The DLBS situation “echoes” the demise of the VelocityShares Daily Inverse VIX Short-Term ETN, ticker XIV, according to Balchunas. XIV was forced to liquidate in February 2018 when volatility spiked. However, assets in XIV topped $2 billion in the previous month, while DLBS holds less than $1 million, he said. Another key difference is the sheer size and liquidity of the $16.9 trillion Treasury market. Should DLBS and similar funds end up being forced to liquidate, it’s enough to impact Treasuries in the same way that XIV’s blow-up rocked volatility markets, according to Greenwich Associates.
https://www.bloomberg.com//news/articles/2020-03-09/relentless-treasury-surge-spurs-reckoning-as-cboe-delists-etn
SAM375 G5 from JBA south and heading to either MacDill AFB or Clearwater St. Pete.
equity's yes. The under-lying derivative problem that has never been addressed is what is working on this. the shiny numbers on the index(s) only represent about 10% of what truly goes on. Darkpools do the rest.
LOBO715 USMC C-560 from Cherry Point west
AZAZ0909 USMC C-560 west from Stillwater Regional Airport Ok.
I didn't call you a moran. you act like one. How did that work in 2008? and no it doesn't always work. i see you are triggered enough to bring it into the nb Welcome newfag.
thanks for playing.
dude you are just too funny. Every time you say buy it goes against you. Give it up with the predictions. You suck
all you do is make predictions with no basis on why-and you have been wrong-facts don't lie You'll notice i don't do that..if you were actually paying attention. Predictions are fatal in your case. There is a place to do those things and this is not one of them
>oh, wait, I flushed you…
I'm heart-broken…really I am.
SAM371 G5 out of JBA and south
SAM364 G5 out of JBA and south
R01052 USMC C-560 West from Newport News Int'l
busy morning
see this for when it gets to high.
from 2018
"Termination Event" Arrives: Traders Panic As XIV Disintegrates -90% After The Close
https://www.zerohedge.com/news/2018-02-05/it-traders-panic-xiv-disintegrates-after-close
the recently fired FRB official last fall , can't remember his name, was the one they brought in to manage the VIX. He got hired in 2011 or 2012 and then about a week later the VIX got nuked.
found it. Simon Potter.
Was in May these two were shown the door.
Richard Dzina and Simon Potter to Step Down from New York Fed
The Federal Reserve Bank of New York today announced that Simon Potter, executive vice president and head of the Markets Group, and Richard Dzina, executive vice president and head of the Financial Services Group, will be stepping down from their respective roles effective June 1, 2019. The New York Fed will conduct a broad and thorough search for their successors.
John C. Williams, president and chief executive officer of the New York Fed, named Ray Testa, chief operating officer of the Markets Group, as interim head of the Markets Group, and Chris Armstrong, senior vice president of cash operations, as interim head of the Financial Services Group, starting immediately. The role of product director for the Wholesale Product Office will revert to Michael Strine, the Bank’s first vice president and chief operating officer, until a new head of the Financial Services Group is in place.
Mr. Potter joined the New York Fed in June 1998 as an economist after a career in academia. Mr. Potter served as director of economic research and co-head of the Research and Statistics Group at the New York Fed, prior to becoming head of the Markets Group in June 2012. In this role, he oversaw the implementation of domestic open market and foreign exchange trading operations on behalf of the Federal Open Market Committee (FOMC), the execution of fiscal agent support for the U.S. Treasury, the provision of account services to foreign and international monetary authorities, and the administration and production of reference interest rates for the U.S. money markets. Mr. Potter has played a prominent role in the Federal Reserve’s financial stability efforts, including by contributing to the design of the 2009 U.S. bank stress tests, as a member of the international Macroeconomic Assessment Group that supported the Basel Committee’s work to strengthen bank capital standards and, most recently, as Chair of the Global Foreign Exchange Committee.
https://www.newyorkfed.org/newsevents/news/aboutthefed/2019/20190528
yw.
it's always been an imperfect vehicle-known as the fear gauge-CBOE Volatility Index. They have so much shit sloshing around it's ridiculous.
CBOE needs a good solid flushing too.
with ya on that. The issue, for normal people, is that all that paper shit is tied to our savings, retirements, assets etc within the derivative complex. Those derivatives have many claims of ownership spread out across the fin world so this is why they are so focused on keeping Deutsche bank alive. They go…it all starts a daisy-chain reaction that makes the "owners" of all this paper start to call it in. Musical chairs so to speak.
That is the big issue. You can't separate the fake credit shoved into the system with the first public bailout and then the $29t one from our "stuff". I used to think that was possible but it is too enmeshed and pervasive so they will need to do the alternative…blow up the paper with low rates. They won't be able to operate for long with the entire Treasury complex under 1%.
memefag made that one long ago..I love it-made a t-shirt out of it too.
you get it with your pic title.
I got lucky with mine, they understood it because my income was derived from it-so they naturally paid attention. At the start of all of the drops, not so much, but once the FRB structure change one hit it all worked out- I have great empathy for couples who are torn by all this.
I had a few fuckups before the 08 event-and never with what I could not afford but I learned and never did it again. The one I want back was shorting amzn at 40 and I did not give it up until 90 or so. Good for me as it took off to the moon shortly after. Still needles me 'bout that one.