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26-yr old credit derivatives trader posts 350MM+ loss
...or so the employer (fund) claims.
This story is interesting across several fronts: 1. Same age range as typical reader of this forum 2. Is blamed for 350MM+ loss 3. Occurs at a time when the whole credit-derivative CDO thing is being swept under the rug in the press 4. Interesting tidbits on his life story The Story: Calyon Trader Fired for Losses Says He's No Rogue http://bloomberg.com/apps/news?pid=2...amp;refer=home |
#2
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Re: 26-yr old credit derivatives trader posts 350MM+ loss
i'm going to read this because i'm 26 and interested in getting into trading.
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#3
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Post deleted by Mat Sklansky
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#4
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Re: 26-yr old credit derivatives trader posts 350MM+ loss
[ QUOTE ]
3. Occurs at a time when the whole credit-derivative CDO thing is being swept under the rug in the press [/ QUOTE ] Excellent point. Everyone thinks that the derivate problem has been solved. The losses, IMHO, are going to be in the trillions. Add this 350M loss to the total. |
#5
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Re: 26-yr old credit derivatives trader posts 350MM+ loss
I really can't see how this can happen. Risk management is so tight in these large firms.
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#6
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Re: 26-yr old credit derivatives trader posts 350MM+ loss
[ QUOTE ]
Sounds like the bank lost a lot of money like nearly every other large financial institution, and used this poor kid as the skapegoat. [/ QUOTE ] He is an easy target. Unfortunate for him, his past is easily used here to discredit him. |
#7
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Re: 26-yr old credit derivatives trader posts 350MM+ loss
Heh, Morgan Stanley lost $390 million in one day!
http://www.bloomberg.com/apps/news?p...d=aY4.Y24hPlxQ |
#8
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Re: 26-yr old credit derivatives trader posts 350MM+ loss
What's that, a half a percent of market cap? Is that significant? eastbay |
#9
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Re: 26-yr old credit derivatives trader posts 350MM+ loss
[ QUOTE ]
What's that, a half a percent of market cap? Is that significant? eastbay [/ QUOTE ] Consider that most financials are trading at 2+ times their book value. Half a percent of their market cap is likely more than 1 percent of their book value. And losing one percent of book value is indeed extremely significant. |
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