Fixed Income Arbitrage in a Financial Crisis A US Treasuries in November 2008 Ryan D Taliaferro Stephen Blyth

Fixed Income Arbitrage in a Financial Crisis A US Treasuries in November 2008 Ryan D Taliaferro Stephen Blyth

Porters Model Analysis

I have done some fixed income arbitrage (FIA) in my first job in a global investment bank, during the financial crisis of 2008-09. The FIA is a classic case study in how not to run a risk arbitrage business. It demonstrates what not to do (if you want to try), and what you should do to do well. In this case, we tried to profit from the sell-off in the US Treasuries in November 2008. To do this, we needed to make the

Case Study Solution

In August 2008, a year and a half before the 2008 US Financial Crisis, Treasury securities hit rock bottom. The yields (the interest rate required to buy a 10-year Treasury Bond) had reached 6.8% in the 1st week of July. There were two factors that had pushed the yields so high: 1) An increase in default rates: the US Treasury was having to pay for a bigger share of its bonds as defaults kept increasing and bonds were

Alternatives

In November 2008, as investors braced for the worst in a decade of bearish markets, US Treasuries were an attractive bet. They offer higher returns and lower risk than many other investments. In fact, with interest rates near zero and central banks around the world pumping money into their balance sheets, yields on US Treasuries plunged during the worst of the credit crisis. However, I also noted that it was risky, especially as the government was still paying down the $700 billion in b

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The financial crisis of 2008 was a once-in-a-generation global phenomenon that began in late 2007 and went global by March 2008. The crisis, as it happened, was precipitated by a series of interconnected, interlocking events: an acute credit crisis, a collapse in housing prices, a sharp decline in consumer and business confidence, and, most dramatically, a plunge in financial market prices and liquidity. However, the effects of the crisis on fixed income markets were far less severe than

Evaluation of Alternatives

The financial crisis that hit the United States Treasuries in November 2008 left many investors unsure of their portfolio allocation. Investment managers found themselves selling securities on the basis that the economy’s situation had changed and was no longer sustainable. browse around this web-site Some were reluctant to increase their holdings as the US Treasuries market is a very liquid market and the spread between the yield of Treasuries and Treasuries were already close to one percent. These investors were unsure if the bond market could sust

SWOT Analysis

A US Treasury Bond is an asset that is issued by the government of the United States. They are issued at fixed interest rates and have tenor that is consistent for the entire life of the bond. Web Site In a crisis such as the financial crisis of 2008, Fixed Income Arbitrage becomes a crucial component of financial management. In my experience, I witnessed the impact of the crisis on the fixed income arbitrage traders. Fixed Income Arbitrage in the US Treasury Bond: The crisis of 200