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Monthly Archives: April 2011
The Truth About Asset-Based Pricing
Back when I worked for a major Wall Street brokerage firm, one of my jobs was marketing my firm’s research to institutional investors, e.g., asset management firms, hedge funds, and mutual funds. The breadth of our research department was impressive. … Continue reading
Posted in Asset Management
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Municipal Bond Investors – Pay Attention to Chowchilla
(Originally Posted on January 4, 2011) Just prior to the full onset of the financial crisis, my wife and I left our jobs and put our belongings into storage and with our two toddlers embarked on a 12-month trip around … Continue reading
Posted in Investing, Municipal Bonds
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High-Frequency Trading – A Liquidity Hoax
(Originally Posted on December 2, 2010) Proponents of high-frequency trading claim that their trading activity increases market liquidity. The idea that high-frequency trading adds liquidity to the markets is pure folklore, these proponents seem to confuse indiscriminate high speed trading … Continue reading
Posted in HFT, Liquidity
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Risk Adjusted Returns and The Brass Ring
(Originally Posted on November 8, 2010) The May 6th 2010 “flash crash” sent the equity markets into a free fall, plunging 700 points in a matter of minutes and sending shockwaves throughout the financial system. The Securities and Exchange Commission, … Continue reading
Posted in Asset Management, Investing
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ETFs – Designed by Traders… for Traders
(Originally Posted on November 1, 2010) Investors seem to have an insatiable appetite for Exchange Traded Funds (ETFs). These securities are attractive for many reasons, including the ease with which they can be bought and sold, low management costs, and … Continue reading
Rethinking Dividends
(Originally Posted on October 14, 2010) There are very few sure things on Wall Street, but one is Wall Street’s history of creating too much of a good thing. Think back to the biotech IPO boom, the dot-com frenzy, and … Continue reading