Wait, did they actually sell credit default swaps on Italy and Greece?

Sharpcharm
Sharpcharm

Wait, did they actually sell credit default swaps on Italy and Greece?

All urls found in this thread:
https://www.youtube.com/watch?v=mZC6WCE5Bj4
http://www.investopedia.com/articles/markets/062816/soros-bet-against-deutsche-bank-after-brexit-vote-db.asp
Skullbone
Skullbone

deutsche is way more corrupt than any american bank

Need_TLC
Need_TLC

this shit will go down hard on 27th or few days before it when insiders panic and tell their relatives, they cant kick the can further any more

sell everything now or enjoy posting sadfrogs after its all gone down the drain and im buying quality stocks for 2009 low prices

Boy_vs_Girl
Boy_vs_Girl

Would the panic make gold go up? (in addition to brexit unstability)

haveahappyday
haveahappyday

@Boy_vs_Girl
Yes it would make gold soar. Gold outperforms pretty much anything this year, and with so many factors driving up its price(lack of monetary normalization, negative rates giving gold a nice relative return, brexit, general volatility, banking crisis in Europe) it should continue its track towards 1400 easily.

idontknow
idontknow

@Need_TLC
why the 27th in particular, is some event scheduled for that day?

Firespawn
Firespawn

@Sharpcharm
when i was in school our politics teacher said that Deutsche Bank is part of every rascality

kizzmybutt
kizzmybutt

So, what's the deal with derivatives, can someone explains it to me?

I heard pic realated is not net positions, so it doesn't mean anything, and it gets compensated anyway.

Is it bankers bullshit talks, or is shit really going to hit the fan?

TreeEater
TreeEater

@idontknow
asking for reason and logic in a HAPPENING thread

Flameblow
Flameblow

@kizzmybutt
Most of that is interest rate swaps. I'm no expert on this, but this is what I thought was going on:

In an interest rate swap, we decide on a notional value for the contract. Let's say it's 1 million dollars in this case. Now, in our swap, I pay you 2% of this, and you pay me a floating interest rate. This way when interest rates go up, I profit, when interest rates go down, you profit.

Now here's the deal: this way we both have a derivatives exposure of 1 million dollars, but in reality only a couple of thousand dollars gets exchanged between us.

I made this thread to ask Veeky Forums whether DB has also sold credit default swaps on Italy and Greece debt, but got no serious response yet. If you want to learn about credit default swaps I recommend you read "The Big Short", or watch this video: https://www.youtube.com/watch?v=mZC6WCE5Bj4

BinaryMan
BinaryMan

@TreeEater
lol ok time to go all in i guess. i'll be selling all my positions to put everything into shorting DB for the week of the 27th. thanks for helping me get rich @Need_TLC
i fucking love this site!

Ignoramus
Ignoramus

well friends, martin armstrong's computer says that dow jones volatility is going up the weeks of 7/18 and 7/25 so the DB failure must be why. pic related. HAPPENING double confirmed.

the only question is what will be the best way profit off this disaster in the short term?

Stark_Naked
Stark_Naked

@Ignoramus
Wow I don't understand anything on that pic, what kind of "graph" is that?

Booteefool
Booteefool

@Stark_Naked
the numbers on the bottom are dates (all 2016).
month/day

MPmaster
MPmaster

@Ignoramus
Looks like a shitty indie game

King_Martha
King_Martha

@Stark_Naked
its actually 10 graphs stacked on top of each other if that helps. they all share the same x axis, which is the dated. y axes as stated.

takes2long
takes2long

I'm currently interning at a top tier Investment Bank. The office went totally crazy during Brexit and now if this happens... lol what a time to be interning.

But honestly haven't heard any rumour nor read any equity research report that suggests what you guys are saying. We'll see.

iluvmen
iluvmen

@takes2long
have you heard anybody say anything about barclay's?

CouchChiller
CouchChiller

@iluvmen

Nope, but then again. I'm just interning. Believe it or not, due to the high regulation we have very strict controls when it comes to talking to equity researchers / reading those report. It's really insane. Also depends on your group you're at I guess. I deal with a lot of inside information, but not from financial institutions. Can't say more. Don't want to go to jail lol

Fuzzy_Logic
Fuzzy_Logic

@CouchChiller
c'mon man be cool. just casually ask your boss about it over lunch. it's a news story i'm not looking for insider information, just opinion.

Fried_Sushi
Fried_Sushi

@takes2long
Nothing at all? Greece has a payment to the EU due on the 20th it probably is incapable of making, and right after the UK voting to leave a lot of theories are going around about them just defaulting

w8t4u
w8t4u

Banca Monte dei Paschi di Siena will crash at the end of the month.

The euro will drop in value.

The Deutsche Bank stock will fall significantly as a result.

The pound will become stronger.

TurtleCat
TurtleCat

What would happen if douche bank collapsed? What effects would it have on the American markets? Any?

hairygrape
hairygrape

@MPmaster
kek given most advice ive got from so called 'financial advisors' it wouldnt surprise me if they really are running the numbers on an atari

CouchChiller
CouchChiller

@TurtleCat

Dollar would go bonkers, might trigger a recession. The US isn't nearly as bad as Europe/Japan, though

Nojokur
Nojokur

@CouchChiller
I kind of feel like it's time for me to cash out of my mutual funds and shit, like, I get this feeling with shit like 30 year bonds paying 1% or whatever, negative bonds outside the US, DB getting ready for crashy chan, canadian housing bubble, etc etc etc that we're heading for a down trend and it's almost time to ride the wave down and buy the turbo dip in a couple of years.

Dunno though, I've been wrong before.

Raving_Cute
Raving_Cute

@TurtleCat
wouldn't be a wide bank panic

probably would lead to more people putting money into american banks and out of european banks

remember that Deutsche Bank failed the stress test

wouldn't be 100% surprised if it goes belly up

would still be 80% surprised though

Gigastrength
Gigastrength

bump

Sharpcharm
Sharpcharm

Deutsche Bank is safe. Germany would never let anything happen to it.

Your happening fantasies need to be kept on /pol/, NEETs. We're grown men here.

Burnblaze
Burnblaze

@Sharpcharm
Soros and his elite analysts disagree. Many also believed Lehman would never be allowed to perish.

SniperWish
SniperWish

@Burnblaze
Soros and his elite analysts disagree.
Gonna require a source.

BinaryMan
BinaryMan

@Sharpcharm
No, it won't. But the markets will still do a -20%, a it'll take a whole 6 months to 1 year to recover. If EU doesn't break up before that, of course.

Techpill
Techpill

OP here, I didn't make a "happening" thread. I actually asked a non-rhetoric question and I want an actual answer on that. So, did DB sell CDSs on Greece or not?

TalkBomber
TalkBomber

@Sharpcharm
see
@kizzmybutt

If DB tanks they are literally

TOO BIG TO BAIL

TurtleCat
TurtleCat

@TalkBomber
see
@Flameblow

you don't know enough about derivatives to have an opinion

askme
askme

@Sharpcharm

Pro-tip: The Deutche Bank impending collapse has become a meme.

Don't trade memes.

Skullbone
Skullbone

@askme
Pro-tip: It's definitely happening. It's a maymay for a reason.

SniperWish
SniperWish

@Techpill
So I still haven't gotten an answer. I can't find anything about DB selling CDSs on the internet, but I remember reading about it on Veeky Forums some weeks ago. What's the deal with that?

girlDog
girlDog

@SniperWish

Well almost all the companies had CDS before the financial crisis in order to hedge risk. Now banks they've developed the CoCos in order to hedge risk and to better in stress test due to the inpact in their CET1 and T1 equity.

Also the CDS seller will only have to make the payment if the debt issuer defaults which is highly improbable in the cases of Italy, Spain and Portugal. And Greece is currently under the bus but still with perspective of living (a miserable but still living) a life. 2014 is over, EU countries are more or less doing okay now. Let this only be a stupid meme in hapening threads.

lostmypassword
lostmypassword

@Sharpcharm
French banks too... Complete radio silence deom there, but they are busy on rioting

Gigastrength
Gigastrength

@Ignoramus
Nah first day of panic is bad for human traders. Let the robots do the job. You should change your currency to USD and wait patiently for good buying spots.

PurpleCharger
PurpleCharger

@Gigastrength
fucking lol. my currency is already in USD mainly, gay. i'll be sure to stay tuned in to fucking Veeky Forums for fucking trading tips. lol!

Booteefool
Booteefool

@Sharpcharm
german who imbibed propaganda detected

ZeroReborn
ZeroReborn

@SniperWish
http://www.investopedia.com/articles/markets/062816/soros-bet-against-deutsche-bank-after-brexit-vote-db.asp

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