Blog Posts

Long-Term Capital Management (LTCM) was a highly successful hedge fund in the mid-1990s that was founded by John Meriwether, a former vice-chairman and head of bond trading at Salomon Brothers. LTCM’s team included several Nobel laureates and the group had a track record of exceptional returns through complex, high-risk strategies. LTCM’s eventual failure has become […]

We look at the history of the British Pound, its rise as the world’s top reserve currency, the factors that contributed to its decline, and the lessons that traders and investors can draw from its history.   Key Takeaways – The Rise and Fall of the British Pound The history of the British Pound underscores […]

From 1434 to 2002, the Dutch Guilder embodied the economic ebb and flow of the Netherlands. Emerging as a regional currency, the Guilder steadily ascended to international prominence during the Dutch Golden Age, becoming a symbol of the nation’s economic strength. Yet, like all things, it was not immune to the inevitable cycles of rise […]

Currency pegging is one technique that nations use to stabilize their economies by tying their currency’s value to that of a stronger, more stable currency, often the US dollar or euro. However, these pegs are not invincible. They can, and do, break under certain circumstances, especially when the exchange rate is out of whack relative […]

Economic surveys are vital tools that help in the understanding of various facets of an economy that traditional data can’t capture (because they’re based on forward expectations). These surveys provide data about growth, consumption, employment, and numerous other factors that contribute to the health of an economy.   Key Takeaways – Economic Survey Reliability Economic […]

The S&P 500 is a benchmark index, comprising 500 of the largest US publicly traded companies. It represents the performance of the stock market by reporting the risks and returns of the biggest companies. Investors use it as the benchmark of the overall market, to which all other investments are compared. Below we’ll look at […]

The issuance of government bonds, an instrument of fiscal policy, plays a significant role in the macroeconomic environment and affects various aspects of financial markets. Here we look at the impacts of government bond issuance on different market sectors, including the credit market, stock market, foreign exchange market, and the general economy. We’ll also take […]

Trading, in its various forms, is an activity that has the potential to be highly lucrative.  There’s a prevailing notion that it requires high intelligence (or “IQ”) to be successful in trading.  The reality, however, is much more nuanced.  We look at the role of intelligence/IQ in trading and determine what really matters for success […]

Below we look at the difference between repo, reverse repo, the ON RRP, and the TGA. All are important features in the plumbing of the global financial system.   Key Takeaways – Repo vs. Reverse Repo vs. ON RRP vs. TGA Repurchase Agreements (Repo) and Reverse Repos are essential components of the global financial system, […]

Current and Capital Account Convertibility are key concepts in international economics and foreign exchange markets, particularly in the context of balance of payments. Current account convertibility refers to the freedom of converting local financial assets into foreign financial assets and vice versa at market-determined rates of exchange for income-related transactions (e.g., exports and imports, remittances). […]