vostok

27 ms·

241.
by vostok 9y ago
It's literally the same effect. The exact security isn't specified so you're going to get the "worst" one that is eligible. If you misjudge how bad the "worst" security is then you'll get screwed. Sim
242.
by vostok 9y ago
It means that the level where they trade the CDS should account for this. TBAs are another good example where this stuff is important.
243.
by vostok 9y ago
The credit event auction means that you can't just get someone to write a CDS, create a default, and collect money. If everything is trading at par then the auction will be at 100 and you'll get nothing. The trick here is that the
244.
by vostok 9y ago
This is the correct answer and only one of two correct answers at the moment. Aside from the difference between the clearinghouse and the clearing broker, the difference between the executing broker and the clearing broker is also interesti
245.
by vostok 9y ago
Clearing doesn't mean buying and selling. There's not really a great analogy, but the idea is that Goldman is on the hook if one of their customers can't maintain the margin/haircut.
246.
by vostok 9y ago
You still need to clear the trades even if you directly trade on the exchange. It's just not worth the expense for the vast majority of customers to maintain clearing memberships for every single product at every single clearing house.
247.
by vostok 9y ago
I'm not an expert on the nitty-gritty details of back office stuff, but typically novation comes into play when you're dealing with swaps. These are centrally cleared futures so you're not facing the person on the other side
248.
by vostok 9y ago
> It's where Goldman would net off trades between their own clients This is internalization, which is different from clearing.
249.
by vostok 9y ago
Of course it's a significant factor. You're talking about a pretty large portion of a household's budget.
250.
by vostok 9y ago
> The difference here is that with property-related taxes there is a policy goal linked to it, and also long-term choice individuals make based on this policy, which would make them very upset if the policy changes. Wouldn't you agr
251.
by vostok 9y ago
I assume this was a typo, but to clarify the family with the $300k mortgage pays more in taxes.
252.
by vostok 9y ago
How do you know that the second family is vastly wealthier? Either way, if you want to tax wealthy people then you can introduce a wealth tax.
253.
by vostok 9y ago
Two questions: ---- 1. What about the property tax deduction? Why are property taxes deductible, but income taxes are not? ---- 2. How do you feel about the mortgage interest deduction? A very similar question could be asked. Two families b
254.
by vostok 9y ago
Yeah I definitely agree with that solution.
255.
by vostok 9y ago
I agree that it's not so simple. > Those who benefit from the education are "taxed" for it in the form of loan payments for a few years, those who don't benefit (directly) from the education are not. Not only that, bu
256.
by vostok 9y ago
As an American, I incur the below costs: * $18,000/year 401k contribution (similar to pension, but I take on the market risk) * $5,500/year IRA contribution (similar to pension, but I take on the market risk) * $200,000 total in t
257.
by vostok 9y ago
I think a lot of the discrepancy is explained by the fact that quant is a very widely applied title. There are quants who spend most of their day in Excel and quants who spend most of their day in C++.
258.
by vostok 9y ago
A human trader can also cause the entire market to crash because of one mistake. See Waddell trading 75k e-minis or PVM trading 7 million barrels of brent while drunk.
259.
by vostok 9y ago
Not that it matters, but 100000% is 1000x. This isn't investment advice. I think the idea is that you'll have some investments that yield 1000x and some that yield 0x so you'll average out to something that's better than
260.
by vostok 9y ago
I agree on the cleaner code, but I actually prefer the screen license.
261.
by vostok 9y ago
By your standards, MBS are also not particularly complex. They're not that different from pools of mortgages. In fact they have a lot of similarities with index funds and tranches are similar to options on the index. The complexity is
262.
by vostok 9y ago
First, I don't see how they (arguably more like a trader or a sales person than a banker) can possibly determine whether or not you understand the product. You don't generally expect car sales people to determine whether or not yo
263.
by vostok 9y ago
> You certainly can witness that with municipalities that are close to going bankrupt because they bought instruments that backfired on them. That seems to be a story about corrupt hiring practices at municipalities. Maybe they should lo
264.
by vostok 9y ago
I agree that customers generally get worse pricing on more complex products, but I don't think this is necessarily bad for the customer. To use a simple example, the market for on the run treasuries is much more liquid than the market
265.
by vostok 9y ago
> I was not aware of the admissions difficulty being so high there compared to the Stanford/elite US universities China has a population of 1.4 billion. Peking University has 33k students and Tsinghua has 45k. Obviously this isn&#x2
266.
by vostok 9y ago
I wouldn't blame the author for this. I have a similar background in many ways. It took me a long time and a good deal of luck to realize that I am not the child of modest workers.
267.
by vostok 9y ago
We don't have to change N to start. That is separate debate. N is currently 65,000 with another 20,000 for US advanced degrees.
268.
by vostok 9y ago
Why does it matter who they're hiring or where? The amount that you are willing to pay someone is a(n imperfect) reflection of how much value they're giving you. People who benefit the most from these immigrants should be able to
269.
by vostok 9y ago
My comment was specifically about the "I mean what sort of position do you need to have to get there?" part of your question. > My question, specifically, is, what fraction of engineers in tech make 7 figures I doubt that OP me
270.
by vostok 9y ago
It's not surprising that it's higher than the average job on stackoverlfow. That's about what I would expect. I'm not saying it's horrible, but it's not exactly higher than top paying tech companies.

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