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Dynamic Hedging or Futile Speculation?
Chesapeake still thinks it can time the market. On Tuesday management held its Conference Call to update to investors and stock analysts. Steve Dixon, the acting CEO, said “We’ve also taken advantage...
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Gold’s Random Walk
A number of journalists are helping to broadcast Goldman Sachs’ latest prediction for gold prices. Goldman’s press agents planted the story in the Wall Street Journal, the Financial Times and the New...
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Smooth Talk About Gold
Bruce Bartlett used his New York Times Economix blog post today to argue that “Gold’s Declining Price Is a Reversion to the Mean”. He buttresses his argument by pointing out that, In a recent paper,...
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Backwardation in Gold Prices?
Izabella Kaminska at FT Alphaville clarifies what’s going on.
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Be careful how you swing that hatchet!
During last year’s debate about the Volcker Rule, Morgan Stanley commissioned a study by the consulting firm IHS that predicted dire consequences for the U.S. economy. I called the study a hatchet...
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Riddle or Ridicule? Reprise or Rehash?
One of my husband’s many incisive stories from his career as an educator reports on an incident in the teachers’ lounge at a high school after an exam. In comes one of the more senior teachers, griping...
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American Airlines Stops Hedging
On its quarterly earnings call earlier this week, the new American Airlines confirmed speculation that it would end the company’s legacy policy of hedging jet fuel prices. The hedges that are in place...
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Unhedged. …oooops.
What happens when you sell your customers power at a fixed price, and you buy your power at a floating price? A local DC green electricity marketer, Clean-Currents, found out as last month’s frigid...
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Never give information to the enemy.
Douwe Miedema of Reuters covered yesterday’s meeting of the CFTC’s Technology Advisory Committee and reports that: The U.S. derivatives watchdog on Monday chided the industry for providing gappy data...
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It takes 2 to tango, and 3 to intermediate.
The Wall Street Journal ran a story last week about Citigroup and Deutsche losing money on the oil hedge they sold to Mexico. The article talks of a loss totaling $5 million on a put sold for a premium...
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