http://absolutideas.com/citigroup-trading-secrets/ gain knowledge and protect your wealth Sat, 13 Mar 2010 07:01:38 +0000 http://wordpress.org/?v=2.7.1 hourly 1 http://absolutideas.com/citigroup-trading-secrets/comment-page-1/#comment-16 Topics about Last-words | Citigroup Trading secrets Mon, 20 Apr 2009 09:15:40 +0000 http://absolutideas.com/?p=752#comment-16 [...] absolutideas created an interesting post today on Citigroup Trading secretsHere’s a short outlineCiti “made” $2.5 billion on a derivatives position designed to profit when the companies own credit default swaps spreads widen. Or, in plain English, Citi profited because it made a bet that the cost of insuring itself against a default would go up. The credit default swap market is the place where you can bet on the credit worthiness of a firm, or, essentially, the chance that a firm might default on its bonds. Citi appears to have reported a $2.5 billion trading gain in the fourth quarter [...] [...] absolutideas created an interesting post today on Citigroup Trading secretsHere’s a short outlineCiti “made” $2.5 billion on a derivatives position designed to profit when the companies own credit default swaps spreads widen. Or, in plain English, Citi profited because it made a bet that the cost of insuring itself against a default would go up. The credit default swap market is the place where you can bet on the credit worthiness of a firm, or, essentially, the chance that a firm might default on its bonds. Citi appears to have reported a $2.5 billion trading gain in the fourth quarter [...]

]]>