‘Twas the weeks before Christmas, when all through the house,
I smelled a hint of the fire Europe was trying to douse.
It seemed to get bigger with each passing day,
From my investment portfolio, please, please stay away.
Rumors keep flying, almost each day at three,
While deposits are growing at the ol’ ECB.
Banks need a break, hoping for some rest,
But they need some help with short-term funding stress.
When out in cyberspace, a message appears,
My trading screen says, “Buy the dip; all is clear.”
Central banks act together, think they’ll save the day,
Investors start buying and all shout, “hooray.”
So I set up the trade, so lively and quick,
Selling into the rally before the day of St. Nick.
Hedge funds buying up delta, and looking for beta,
I’m a little more comfortable just selling theta.
Now Germany! France! Please tell us some more!
On December 9th, about what is in store!
We know that you know just what it is that you want,
Can we hope for a 21st century détente?
But in the meantime, go take some looks,
At the cash different corporates have on their books.
Now get on your gloves, time for a fixed income spar,
Let others take sovereigns; you take corporates under par.
In case Europe should falter, and things fall apart,
Buy some insurance, like you would on your car.
This goes for fixed income, and equities too,
Perhaps pick yourself up a precious metal or two.
Good luck in the era in which uncertainty reigns,
Good luck getting income, and capital gains.
Thank you for reading, I wish you the best,
And hope markets soon make it through all of this stress.
I’ll now finish writing and work on the tree,
Hang lights on the house, for everyone to see.
Let the lights be a symbol that things will work out,
Despite gloom out of Europe, unemployment, and doubt.
So during this season of sovereign worries and fright,
Merry Christmas to all, and to all a good night!