Eddy Elfenbein thinks the time is right for the U.S. government to issue perpetual bonds:
How to get drivers to help pay for the direct costs and negative externalities they cause? A congestion charge is one obvious way, but it’s expensive and complicated to implement. A driveway tax isn’t quite as elegant, but it’s much simpler, and it seems to be catching on even outside Oregon: it’s just been implemented by Mission, Kansas.
Paul Amery grabs this chart from a recent Deutsche Bank report:
The different lines are various ETFs, all of which seek to replicate the Euro Stoxx 50, which is the black line in the chart. Nearly all of them managed to outperform the index over the 20-month period in question, although if I were an investor in UBS’s ETF I’d certainly be asking questions. And it’s pretty clear that the degree of outperformance in many cases is a much larger component of total returns than is the headline expense ratio on the funds.
One of the key tools used by fixed-income analysts during the Great Moderation was their beloved Monte Carlo simulation. They would take an instrument like a CPDO or a subprime-backed CDO, and they would run it through tens of thousands of possible future worlds. If it held up in all or nearly all of those worlds, then, presto, it got a triple-A credit rating.
On August 12,13, and 16, 2010, Defendant Juan Jose Fernandez Garcia (“Garcia”), a Madrid, Spain resident and the Head of European Equity Derivatives at Banco Santander, S.A., an advisor to BHP in connection with its tender offer, purchased a total of 282 call options for approximately $13,669, all of which he sold on August 17, 2010 for a profit of approximately $576,000.