High Sharpe's  Instablog

High Sharpe
Send Message
Self Employed former institutional proprietary trader with 20 years investing experience. Managed multi-strat equity and derivative book.
  • Yield Enhancement, The Wolf In The Night 0 comments
    Apr 22, 2013 8:49 AM

    The other day I visited a global insurance provider. A nice visit, but what struck me were the implied interest rates on the product portfolio.

    They were low, very low. Basis points above the 30 year on that scale. It made me wonder, which is a better credit risk? The US government, or the aforementioned global provider?

    Guys are beginning to pursue yield again. What better way to enhance your yield, than to sell some options? Is this why volatility is so low? Is there an artificial level being promulgated by the institutional community? Or are we just in a period of benign demographic transition?

Back To High Sharpe's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.