New one (8-17-2007)
Scanning my daily reads, it seems that fear is so absolutely persistant throughout the markets that there exist some diff bet opportunities.
one that i like right now is short the 3 mo Tbill rate, long the euodollar futures contract. the spread between the LIBOR rate and the spot 3motbill rate is around 1.4% (largest in a long while).
i think that while markets may get a bit more crazy before they calm down, the level of fear now is persistant enough to enter this diff bet trade.
i'd put a +25% signal on this trade (long since i'm betting the spread narrows)
other ideas welcome
Barron
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