Sparkling Trades
Resources
This FT series outlines some of the cleverest – or luckiest – strategies seen in recent years. The topics covered include: the negative basis trade between cash bonds and derivatives; the Chandler Brothers’ bet in Japan; bets on internet gaming stocks; and trading on the restructuring of Drax, among a few others.
The Long View
ECB takes on autocrats’ mantle to slay inflation
The world is gripped by the return of an old dread, says John Authers
Spectacular profit from gas futures
John Arnold, a 32-year-old hedge fund manager has emerged as a leading player on the global energy trading stage. His fund Centaurus Energy, based in Houston and estimated to have $3bn in assets, has gained by running contrary to rivals such as Amaranth.
The emerging markets gold mine
Argentina’s decision to default on its sovereign debt in 2001, the biggest state default in history, was a disaster for many investors. But for a small number, such as T. Rowe Price, it has turned into a gold mine.
Negative basis is easy money
When it comes to easy money, it’s hard to overlook a dramatic distortion in the credit market that has generated virtually risk-free returns for some investors in recent months. Thanks to surging demand for credit exposure in the derivatives market, the cost of insuring against corporate default through CDSs has dropped.
Not very sexy, just very profitable
The booming world of credit derivatives and structured products ought to be fertile ground for sparkling trades, given the amount of money that has flooded into the field, creating a market worth more than $26,000bn.
Brothers go own way in Japan
Not many people had heard of Richard and Christopher Chandler. They shot into public view when Forbes magazine included them for the first time in a list of New Zealand's richest citizens - and placed them top, with $2.7bn of assets.
'Million-to-one' gamble pays off
One hedge fund manager’s short-selling of online gambling stock turned into one of the ‘financial killings’ of 2006, reports David Oakley.
Smart trades that made this a good year for some
For every great loss there is invariably a win somewhere. However, those who make brilliant trades are often reluctant to reveal them – out a fear of attracting either jealousy, attention from the taxman, or simply a bout of bad luck.
Luck, skill and courage needed to join the world's greatest traders
What produces brilliant trades? It is a question that has triggered endless debate among bankers, but produced little consensus on the secrets of success.
Risky business: short selling explained
Short selling is the selling of a security that the trader does not own - in other words, the shares are borrowed, sold, then returned to the lender at a later date when payment is finally made.
