Disliked{quote} worked on a G10 spot FX desk as well as EM options. re: bond markets, consider the Fed who own 30% of 10Y equivs, and willing to continue buying. That is manipulation of rates. re: long term trading, when there were prop desks they could take levered positions for the long term in order for capital gains where as they aren't allowed to do that as much anymore. The most they can do is profit by being a market maker. The treasury section of a bank can hold reserves in various currencies to profit, but that isn't substantial.Ignored
Did you see all the banks operations in the markets? How do you know that there is no manipulation if you haven't seen everything?
As far as I know the FED has a random algo to buy treasuries, correct me if I'm wrong.
You don't need leverage if you manage billions, you will still move the market.
Anyone read the interview with Bill Lipschutz in New Market Wizards?
Yeah?! Well.. you know, that's just like.. your opinion man! - Big Lebowski