Month: May 2017

When High Yield Becomes Low Yield

In December 2008, as the “world was ending,” European junk bonds hit a record high yield of 25.97%. Forecasts of financial Armageddon were widespread, and few could envision a scenario in which subordinated bondholders would receive anything but pain. But the world did not end in December 2008. And over next five years, European junk […]

Welcome to the Casino

Last week we learned how to lose 40% in a day using ETFs. Abridged version: combine leverage with high volatility asset classes… This was of course a tongue-and-cheek exercise. No one buys such things with the goal of losing 40% in a day – they buy with the goal of making that much. And not […]

  Link to Slides: Pension Partners – Manager Call – May 2017 This webinar is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction […]

  • Posted in Uncategorized
  • Comments Off on Is Shorting Volatility a Free Lunch? Markets Webinar Replay (May 2017)

If the Year Ended Today…

It’s only May 25, but if the year ended today… 1) It would be a pretty good one for global equities, with the median country up 15.8%. Out of 45 country ETFs in the table below, 10 are up more than 20%, 31 are up more than 10%, and only 3 are negative. 2) For the […]

  • Posted in Uncategorized
  • Comments Off on If the Year Ended Today…

How to Lose 40% in a Day

Want to learn how to lose 40% in a single trading day? Good. This post is for you. Losing 40% or more in a day was always possible using futures and options, but before June 2006 it was nearly impossible to do so using an exchange-traded fund (ETF). What happened in June 2006? The first […]

  • Posted in Uncategorized
  • Comments Off on How to Lose 40% in a Day