Nobody is afraid. The only one afraid is you. You keep projecting your feelings onto others. I for one am disgusted. We have a President who attacked our best friends and sucked up to Russia and North Korea. A simpleton who can’t even run a casino. Trump doesn’t want to end the overspending. Trump even asked congress to do away with the debt limit. You really need to understand what is going on instead of trying to snow everyone.
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It’s true that it isn’t classic arbitrage (which usually works on much smaller differences due to location or market), but I can’t think of any other word that can describe this phenomenon.
There are hundreds of specific examples! Just this morning I looked at a ~10 yr Microsoft bond (AAA rated Cusip 594918BK9) that is yielding 4.56%. I could choose to buy that one instead of the roughly equivalent 10-year treasury yielding 4.33% right now. If I believes that the yield on the 10 year treasury will go up, and the yield on that Microsoft bond will come down, then I can later choose to sell the Microsoft bond at a slight profit, and put the money back into a 10-year treasury note at the then higher rate, and even slightly higher margin of safety.
That’s true (happy to agree, always) and it’s also not “regular arbitrage.”
And neither is your Microsoft example.
How are the MSFT bond economics and liquidity equivalent to the Treasury issue?
By the way, what is the Treasury issue expiring in Nov 2035?
Words have meaning, or at least they are supposed to have meaning.
That’s how we communicate most clearly between sender and receiver: when the words we use have the same meaning.
In the context of financial markets, arbitrage has a fairly precise meaning.
Here is a better and more honest (I speculate) answer.
“As a layperson with respect to fixed income arbitrage, I casually used the term arbitrage to describe an investor trading on a (maybe transitory) price disruption in two or more assets (maybe bonds).
This description probably doesn’t match the typical technical and professional use of the term arbitrage.
But hey, no big deal, in most subjects we are all laypersons.”
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Americans voted for Trump. He is the President. Wiped the floor with Biden and Kamala.
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Biden won his race by 4.5% of the popular vote. Harris lost her race by 1.5% of the popular vote.
I don’t think “wipe the floor” means what you think it means.
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No Biden wiped the floor with Trump and won a majority of the American vote. Joe didn’t run this time, so Trump barely beat Kamala and couldn’t even do it by a majority. He won by a small minority. That is why Americans are standing up against his lawless reign. Trump has never had a majority of Americans vote for him and never will.
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Trump is a Felon.
Cry me a river of tears.
Like I said Trump didn’t win by a majority, only by a small minority, a tiny, insignificant, marginalized group of people.
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Now that he wiped the floor with Biden and Kamala, he is going to flush them down. The money spigot is turned off, kick backs stopped and voter id requirement laws will enacted. No more cheating allowed.
Americans have stopped listening to the corrupt media and hollywood celebrities and their woke nonsense.
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That doesn’t mean he can’t have bad ideas. By definition, all Presidents entered office with Americans having voted for them. By definition, all Presidents have been the President. And I think I can say without fear of contradiction that all Presidents have had some bad ideas. Despite the fact that every one of them were the President and had Americans vote for them.
You keep bringing up the fact that Trump won the election as a counter to specific critiques of his individual policies, but that’s not really valid. His political successes certainly can be cited as evidence to argue that he has support for, or a mandate for, a particular policy. But they don’t show that his policies are good, or that they won’t have adverse consequences, or that they will be successful at achieving their intended effect.
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I understand that you guys are afraid of change and want to ignore the problem. You are clinging on to status quo.
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No, we’re not. That’s your defense, because you can’t engage with the critiques that are being levied against this policy.
Sometimes when people want to make a change to the status quo, what they’re proposing is stupid or wrong or counterproductive. Pointing out that the thing is stupid or wrong or counterproductive isn’t clinging to the status quo. It’s pointing out that the proposal is bad.
Most folks on all sides of the aisle agree that steps need to be taken to change the status quo (hence, for example, the passage of the CHIPS Act under the last Administration). This specific alternative to the status quo is a terrible idea, thoughtless in both its design and execution, and unlikely to achieve any of the lofty (but mutually exclusive) goals set out by its proponents.
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That did not age well.
You jinxed the entire US economy. Sheesh!
Note we do not need to wait for China to ruin the housing market. We have arrived.
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US needs to take the medicine.
It is your right to voice an opinion but you have no expertise or information or evidence of policy’s efficacy than the POTUS and his cabinet.
My suggestion is to not panic, ignore the day to day stock prices / treasury yields as a signal of policy effectiveness. It will take many months to play out.
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Dear Andy,
Never again with this error?
“an óinseach ag aoradh ar an amadán”
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